4.3.
CC Regular Session
- Meeting Date:
- 05/12/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Five Year Lease Agreement Extension to PACT Charter School for use of 6701 Hwy 10 Cold Storage Area.
Purpose/Background:
Purpose of Case:
Approve Five Year Lease Agreement extension.
Background:
Premier Commercial Properties, the City's contracted property management company, recently approached Staff regarding a request from PACT Charter School to renew their existing Lease Agreement with the City of Ramsey by five years. PACT Charter's existing Lease Agreement is set to expire on July 31, 2015.
Currently, PACT Charter utilizes approximately 5,400 square feet of space at 6701 U.S. Highway 10 for the storage of ten school buses. PACT Charter made a couple improvements to the City's property that will remain when the tenant no longer occupies this space (i.e. power garage door openers and electrical outlets for engine block heaters).
Approve Five Year Lease Agreement extension.
Background:
Premier Commercial Properties, the City's contracted property management company, recently approached Staff regarding a request from PACT Charter School to renew their existing Lease Agreement with the City of Ramsey by five years. PACT Charter's existing Lease Agreement is set to expire on July 31, 2015.
Currently, PACT Charter utilizes approximately 5,400 square feet of space at 6701 U.S. Highway 10 for the storage of ten school buses. PACT Charter made a couple improvements to the City's property that will remain when the tenant no longer occupies this space (i.e. power garage door openers and electrical outlets for engine block heaters).
NOTE: when this agreement is executed staff will evaluate a potential expansion of pavement to the east side of 6701. The purpose of this potential pavement expansion would be to provide a "turn-around area" for the PACT Charter buses. Currently,the buses are utilizing an unpaved portion of property--and it is creating an unfavorable view shed from U.S. Highway 10.
Notification:
NA
Observations/Alternatives:
SUMMARY OF LEASE:
Premises: 5,460 square feet (420 heated, 5,040 square feet cold storage)
Term: five-year term, beginning August 1, 2014
Cancelation: if needed by City for Highway 10 improvements, nine month notice. After three years, either party can cancel with a two month notice.
Insurance: $1,000,000 public liability insurance
Rent: checked by Premier Commercial Realty (is market rate)
Property Taxes: Will remain tax exempt - City and PACT are both tax-exempt entities
Permitted Use: the Subject Property will be used and occupied by tenant solely for the purpose of storage of ten school buses with Tenant’s primary business operation located at 6701 West Highway 10.
Premises: 5,460 square feet (420 heated, 5,040 square feet cold storage)
Term: five-year term, beginning August 1, 2014
Cancelation: if needed by City for Highway 10 improvements, nine month notice. After three years, either party can cancel with a two month notice.
Insurance: $1,000,000 public liability insurance
Rent: checked by Premier Commercial Realty (is market rate)
August 1, 2015 – July 31, 2016 $627.27 monthly (7,527.24 annually)
August 1, 2016 – July 31, 2017 $646.09 monthly (7,753.08 annually)
August 1, 2017 – July 31, 2018 $665.47 monthly (7,985.64 annually)
August 1, 2018 – July 31, 2019 $685.43 monthly (8,225.16 annually)
August 1, 2019 – July 31, 2020 $706.00 monthly (8,472.00 annually)
Electric: Self-metered. Will pay city directly for monthly usage at current monthly electric rates.August 1, 2016 – July 31, 2017 $646.09 monthly (7,753.08 annually)
August 1, 2017 – July 31, 2018 $665.47 monthly (7,985.64 annually)
August 1, 2018 – July 31, 2019 $685.43 monthly (8,225.16 annually)
August 1, 2019 – July 31, 2020 $706.00 monthly (8,472.00 annually)
Property Taxes: Will remain tax exempt - City and PACT are both tax-exempt entities
Permitted Use: the Subject Property will be used and occupied by tenant solely for the purpose of storage of ten school buses with Tenant’s primary business operation located at 6701 West Highway 10.
Funding Source:
Proceeds will be deposited into the designated RALF account.
This lease agreement requires a "commission payment" to be made: 5% of lease rate, $376.36 in year 1, $387.65 in year 2, and $399.28 in year 3 ($1,163.29 total). This payment will be made to premier commercial realty, the City's contracted lease broker.
This lease agreement requires a "commission payment" to be made: 5% of lease rate, $376.36 in year 1, $387.65 in year 2, and $399.28 in year 3 ($1,163.29 total). This payment will be made to premier commercial realty, the City's contracted lease broker.
Recommendation:
To date, PACT Charter has been a responsible and cooperative tenant; and has paid rent consistently on time. Based on input from the City's real estate broker, the proposed lease rate is competitive with the private market; and the tenant has maintained a positive and professional relationship.
Recommendation:
Approve the attached five year Lease Agreement extension: PACT Charter School use of 6701 Hwy 10 cold storage area.
Recommendation:
Approve the attached five year Lease Agreement extension: PACT Charter School use of 6701 Hwy 10 cold storage area.
Action:
Motion:
Approve the attached five year Lease Agreement extension to PACT Charter School for use of 6701 Highway cold storage area; subject to final review and amendments by the City Attorney.
Approve the attached five year Lease Agreement extension to PACT Charter School for use of 6701 Highway cold storage area; subject to final review and amendments by the City Attorney.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 05/07/2015 09:36 AM |
| Kurt Ulrich | Kurt Ulrich | 05/07/2015 10:26 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 05/06/2015 12:20 PM
- Final Approval Date:
- 05/07/2015