Lease Property Management

In June of 2009, the City reviewed its property management agreement with Premier Commercial Properties and removed 6701 Hwy 10 (the Youth First Building) and 6101 Hwy 10 (Ralph's Gun and Pawn property) from the list of managed properties.  Currently, the sole property under management by Premier Commercial Properties is the property 6745 Hwy 10 (Midwest Car Care).  The monthly fee for this service (see attached agreement) is $400 per month.

The property management fee of $400 per month may be paid from rent receipts per the agreement with the Metropolitan Council under the Right-of-way Acquisition Loan Fund (RALF) program, while City staff time to manage the property is not reimbursable.  However, contracted time (e.g., plumber, electrician, HVAC, etc.) is a reimbursable expense.

Based upon our experience with the property and the fact that it is currently fully leased, staff believes that the City could pick-up the management of the property at 6745 Hwy 10 with a nominal impact to existing staff and cancel the Premier Commercial Properties contract.  This would be an additional expenditure of staff time by the City, but would likely result in more monies flowing back into the RALF fund.

 

A 60-day notification is required to terminate the contract with Premier Commercial properties. 

Consider termination of the property management contract with Premier Commercial Properties for the property at 6745 Highway 10.

Based upon discussion.