4.5.
CC Regular Session
- Meeting Date:
- 02/10/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Approve Lease Agreement Extension with Pro Power Sports and Marine INC
Purpose/Background:
Purpose:
Approve Lease Agreement Extension with Pro Power Sports & Marine, Inc
Background (City Property)
The City owns a parcel located at 6781 U.S. Highway 10. The property was purchased with MnDOT RALF dollars (revolving acquisition loan fund) for the purpose of future ROW (right of way) for U.S. Highway 10. The City has the ability to lease RALF properties until they are needed for U.S. Highway 10 Improvements. Attached to this case is a reference map of the subject property.
Background (Lease)
Attached to this case is the "original lease" the City of Ramsey entered into with Pro Power Sports in March of 2014. The new lease covers the identical premises, terms and conditions--other than rent price. Per recommendation of the City's lease broker (Marty Fisher with Premier Commercial Realty), the rent price was increased from $525 per month to $540.75 per month. The new lease, attached, is technically an amendment or extension to the original lease.
Attached to this case is a rent analysis. The City "nets" very little from this lease (about $700 annual). However, the property is being put back on the tax rolls which will generate an estimated $2,887 in total taxes (about 1/4 for the City). Broker commission and property management are included in this analysis.
Approve Lease Agreement Extension with Pro Power Sports & Marine, Inc
Background (City Property)
The City owns a parcel located at 6781 U.S. Highway 10. The property was purchased with MnDOT RALF dollars (revolving acquisition loan fund) for the purpose of future ROW (right of way) for U.S. Highway 10. The City has the ability to lease RALF properties until they are needed for U.S. Highway 10 Improvements. Attached to this case is a reference map of the subject property.
Background (Lease)
Attached to this case is the "original lease" the City of Ramsey entered into with Pro Power Sports in March of 2014. The new lease covers the identical premises, terms and conditions--other than rent price. Per recommendation of the City's lease broker (Marty Fisher with Premier Commercial Realty), the rent price was increased from $525 per month to $540.75 per month. The new lease, attached, is technically an amendment or extension to the original lease.
Attached to this case is a rent analysis. The City "nets" very little from this lease (about $700 annual). However, the property is being put back on the tax rolls which will generate an estimated $2,887 in total taxes (about 1/4 for the City). Broker commission and property management are included in this analysis.
Observations/Alternatives:
SUMMARY OF LEASE:
Premises: 15,000 square feet, paved/fenced in area only
Term: one year term, beginning March 1, 2015
Termination: one year termination clause for City
Insurance: $1,000,000 public liability insurance
Rent: $540.75 monthly, $7,500 annual
Property Taxes: City responsible (similar to other RALF properties, covered in base rent) The 2014 taxes on premises was about $2,700.
Permitted Use: the subject Property will be used and occupied by tenant solely for the purpose of outside storage, display and sales of boats, snowmobiles and similar recreation equipment and accessories as an accessory use of the Tenant’s primary business operation located at 6781 West Highway 10.
Premises: 15,000 square feet, paved/fenced in area only
Term: one year term, beginning March 1, 2015
Termination: one year termination clause for City
Insurance: $1,000,000 public liability insurance
Rent: $540.75 monthly, $7,500 annual
Property Taxes: City responsible (similar to other RALF properties, covered in base rent) The 2014 taxes on premises was about $2,700.
Permitted Use: the subject Property will be used and occupied by tenant solely for the purpose of outside storage, display and sales of boats, snowmobiles and similar recreation equipment and accessories as an accessory use of the Tenant’s primary business operation located at 6781 West Highway 10.
Funding Source:
NA
Recommendation:
Over the course of 2014, Pro Power Sports has been a good tenant. They have paid on time and taken good care of the premises. Pro Power Sports is a valued Ramsey Business and respected member of our community. The City's lease broker has indicated this lease is "market rate" and "fair." Staff recommends the attached lease agreement extension be approved by the City Council.
Action:
Approve the attached lease agreement extension with Pro Power Sports; subject to amendments by the City Attorney.
Attachments
- Pro Power Sports City of Ramsey Amendment One to Lease
- Original Lease Agreement
- Ref Map
- Rent Analysis 02032015
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 02/05/2015 03:18 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 02/03/2015 09:09 AM
- Final Approval Date:
- 02/05/2015