4.6.
CC Regular Session
- Meeting Date:
- 02/25/2014
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Lease Agreement with Pro Power Sports for use of City Owned Land for Outside Storage
Purpose/Background:
Purpose of Case:
Approve Updated Lease Agreement with Pro Power Sports for use of City Owned Land for Outside Storage.
Background:
The City owns a vacant 1.64 acre parcel of land located at 6811 U.S. Highway 10 (north side, between Ramsey Bicycle and Pro Power Sports). This parcel was purchased by the City via the State Right-of-Way Acquisition Loan Fund (RALF) for future U.S. Highway 10 right-of-way (ROW).
It is common practice for the City to lease "RALF" properties back to the private sector. The City adopted a policy in March 2013 to guide lease negotiations (attached).
In this particular scenario, the City began leasing 6811 U.S. Highway 10 to Pro Power Sports in March of 2013; which terminates in March 2014 (one year lease). Pro Power Sports is proposing a new one year lease at a rate of 42 cents per square foot (35 cents in previous lease). The amount of square feet being leased will be 15,000 (22,000 previous lease). The amount of leasable space is being reduced in order to bring the property into compliance with City Code standards in regard to exterior storage in the front yards. Taxes and admin expenses will be covered by the proposed lease rate of $525 per month ($650 previous lease). Pro Power Sports will be responsible for liability insurance and all routine property maintenance costs. Based on discussions with the City's Commercial Property Manager, Premier Commercial Realty, the proposed lease terms are fair and within competitive private market rates.
Attached to this case is the proposed one year lease and a rent analysis.
Approve Updated Lease Agreement with Pro Power Sports for use of City Owned Land for Outside Storage.
Background:
The City owns a vacant 1.64 acre parcel of land located at 6811 U.S. Highway 10 (north side, between Ramsey Bicycle and Pro Power Sports). This parcel was purchased by the City via the State Right-of-Way Acquisition Loan Fund (RALF) for future U.S. Highway 10 right-of-way (ROW).
It is common practice for the City to lease "RALF" properties back to the private sector. The City adopted a policy in March 2013 to guide lease negotiations (attached).
In this particular scenario, the City began leasing 6811 U.S. Highway 10 to Pro Power Sports in March of 2013; which terminates in March 2014 (one year lease). Pro Power Sports is proposing a new one year lease at a rate of 42 cents per square foot (35 cents in previous lease). The amount of square feet being leased will be 15,000 (22,000 previous lease). The amount of leasable space is being reduced in order to bring the property into compliance with City Code standards in regard to exterior storage in the front yards. Taxes and admin expenses will be covered by the proposed lease rate of $525 per month ($650 previous lease). Pro Power Sports will be responsible for liability insurance and all routine property maintenance costs. Based on discussions with the City's Commercial Property Manager, Premier Commercial Realty, the proposed lease terms are fair and within competitive private market rates.
Attached to this case is the proposed one year lease and a rent analysis.
Notification:
NA
Observations/Alternatives:
NA
Funding Source:
Rent proceeds will pay for Admin and Taxes.
Recommendation:
Approve Attached Lease Agreement with Pro Power Sports for use of City Owned Land for Outside Storage.
Action:
Approve Attached Lease Agreement with Pro Power Sports for use of City Owned Land for Outside Storage.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 02/20/2014 07:01 AM |
| Kurt Ulrich | Kurt Ulrich | 02/20/2014 03:10 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 02/19/2014 08:32 AM
- Final Approval Date:
- 02/20/2014