7.7.
CC Regular Session
- Meeting Date:
- 06/28/2016
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Request for Temporary Reduction in Rent for a City Owned Property Located at 6701 Highway 10
Purpose/Background:
The City of Ramsey entered into a two-year lease agreement in April of 2015 with Northern Light Church for the use of 4,800 sf feet of space located within a city-owned building at 6701 U.S. Highway 10 for worship services.
The City received the attached request, for a temporary reduction in rent rates, from Northern Light Church in April of 2016. The Council first reviewed said request in early May; at which time, direction was provided to update the City's lease policy before responding to this request. Included on the agenda tonight, before this case, is a separate case to amend and update the City's lease policy.
The staff recommendation included in this case is made based on the assumption the previous case will be approved. If the lease policy case is not adopted by the City Council, it may be warranted to postpone action on this specific case.
The City received the attached request, for a temporary reduction in rent rates, from Northern Light Church in April of 2016. The Council first reviewed said request in early May; at which time, direction was provided to update the City's lease policy before responding to this request. Included on the agenda tonight, before this case, is a separate case to amend and update the City's lease policy.
The staff recommendation included in this case is made based on the assumption the previous case will be approved. If the lease policy case is not adopted by the City Council, it may be warranted to postpone action on this specific case.
Notification:
NA
Observations/Alternatives:
This request was reviewed by staff in context of the city's amended Policy for Leasing City Owned Property. Below are general findings and staff notes:
(1) Tenant has provided past two years of financial statements. Financials were reviewed by Premier Commercial Realty. It appears the indication that Northern Light Church is experiencing a financial hardship is justified.
(2) Tenant has provided a narrative describing how they plan to correct their financial hardship. The narrative was reviewed by Premier Commercial Realty. It appears the tenant's plan for recover is reasonable.
(3) Tenant requested a reduction in rent for ten months. The newly adopted Policy for Leasing City Owned Property calls for a maximum six months. The staff recommendation included in this case was adjusted accordingly.
(2) Tenant has provided a narrative describing how they plan to correct their financial hardship. The narrative was reviewed by Premier Commercial Realty. It appears the tenant's plan for recover is reasonable.
(3) Tenant requested a reduction in rent for ten months. The newly adopted Policy for Leasing City Owned Property calls for a maximum six months. The staff recommendation included in this case was adjusted accordingly.
Funding Source:
NA
Recommendation:
Motion to:
Approve a six-month temporary reduction in rent rates for the Lease Agreement between the City of Ramsey and Northern Light Church for use of 6701 U.S. Highway 10 (3 months at 50% of base rent and 3 months at 75% of base rent).
Staff Comments:
This request was reviewed by Premier Commercial Realty. Premier has stated the request is justified and reasonable. Staff reviewed this request and would note, to-date, Northern Light Church has been a good tenant and good community partner. Staff could support approval of a temporary reduction in rent. The staff recommendation is consistent with the new Policy for Leasing City Owned Property. Approving this request will not put the city is a position of financial hardship, as this property is tax exempt, and the majority of maintenance costs are paid for by tenants.
Approve a six-month temporary reduction in rent rates for the Lease Agreement between the City of Ramsey and Northern Light Church for use of 6701 U.S. Highway 10 (3 months at 50% of base rent and 3 months at 75% of base rent).
Staff Comments:
This request was reviewed by Premier Commercial Realty. Premier has stated the request is justified and reasonable. Staff reviewed this request and would note, to-date, Northern Light Church has been a good tenant and good community partner. Staff could support approval of a temporary reduction in rent. The staff recommendation is consistent with the new Policy for Leasing City Owned Property. Approving this request will not put the city is a position of financial hardship, as this property is tax exempt, and the majority of maintenance costs are paid for by tenants.
Action:
Motion to:
Approve a six-month temporary reduction in rent rates for the Lease Agreement between the City of Ramsey and Northern Light Church for use of 6701 U.S. Highway 10.
Approve a six-month temporary reduction in rent rates for the Lease Agreement between the City of Ramsey and Northern Light Church for use of 6701 U.S. Highway 10.
NOTE: 3 months at 50% of base rent and 3 months at 75% of base rent.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 06/23/2016 12:01 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 06/23/2016 09:50 AM
- Final Approval Date:
- 06/23/2016