Approve Letter of Intent With Pact Charter School to Lease Warehouse Space at 6701 Highway 10

Premier Properties, which now handles the property management of several properties on Highway 10 for the City, has received a Letter of Intent from Pact Charter School, approved by their Board, to enter into a lease agreement for warehouse space at 6701 Highway 10.

Pact Charter School is proposing to lease a portion of the back storage area to store approximately ten school buses.  The proposal asks for approximately 420 square feet of heated storage space on the east side of the building (Exhibit A in attachment) and approximately 5,040 square feet of cold storage space (Shown also in Exhibit A).  Access to both the East and West loading doors (doors 2,3,4,13,14,15 and 12(heated bay) are needed) Pact is proposing a $1 per square foot and their share of electrical costs. 

Per Marty Fisher, of Premier Properties, current market rate is around $1.50 per square foot.  Pact is proposing to make the following modifications at their expense:  Add electrical operators on each garage door and additional electrical to power engine block heaters for the buses.  An electrical sub-meter would be installed to monitor electrical usage.  The improvements would remain with the building.

Pact Charter School Letter of Intent is attached.  This item was presented to the City Council at a worksession earlier in the evening.

Based on the recommendation of the city's property manager, Premier Properties, to accept the $1.00 per square foot proposal as the $1.00 per square foot would not be undercutting the market in Ramsey due to there not being any other cold storage space on the market in Ramsey.

RALF funded.  Rent revenues are to be used within the RALF guidelines.

Motion to Approve the Letter of Intent, and authorize staff to prepare a lease agreement between Pact Charter School and the City of Ramsey, subject to review and approval of the City Attorney.