4.4.
CC Regular Session
- Meeting Date:
- 05/12/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Two Year Lease Agreement Extension to Northern Light Church for use of 6701 Hwy 10 Office Space.
Purpose/Background:
Purpose of Case:
Approve Two Year Lease Agreement extension.
Background:
Premier Commercial Properties, the City's contracted property management company, recently approached Staff regarding a request from Northern Light Church to renew their existing Lease Agreement with the City of Ramsey by two years. Northern Light Church's existing Lease Agreement is set to expire on October 31, 2015. Currently, Northern Light Church utilizes approximately 4,820 square feet of office space at 6701 U.S. Highway 10 for a worship / gathering area.
Approve Two Year Lease Agreement extension.
Background:
Premier Commercial Properties, the City's contracted property management company, recently approached Staff regarding a request from Northern Light Church to renew their existing Lease Agreement with the City of Ramsey by two years. Northern Light Church's existing Lease Agreement is set to expire on October 31, 2015. Currently, Northern Light Church utilizes approximately 4,820 square feet of office space at 6701 U.S. Highway 10 for a worship / gathering area.
NOTE: once this lease agreement is executed, staff plans on re-painting the exterior of 6701 Hwy 10 (front portion only). Additionally, in order to accommodate a larger number of uses/ followers, Northern Light Church has requested the existing (vacant and unused) parking located in the rear of 6701 be opened up for use. Staff reviewed the request (including PD and FD), and intends to remove a section of fence located on the east side of the property to allow for overflow parking in the rear of 6701.
Notification:
NA
Observations/Alternatives:
Premises: 4,820 square feet
Term: two-year term, beginning November 1, 2014
Cancelation: After one year, either party can cancel with a three month notice.
Insurance: $1,000,000 public liability insurance
Rent: checked by Premier Commercial Realty (is market rate)
Property Taxes: will remain tax exempt.
Permitted Use: the Subject Property will be used and occupied by tenant solely for the purpose of office and worship space use.
Term: two-year term, beginning November 1, 2014
Cancelation: After one year, either party can cancel with a three month notice.
Insurance: $1,000,000 public liability insurance
Rent: checked by Premier Commercial Realty (is market rate)
August 1, 2015 – July 31, 2016 $2,711.25 monthly ($32,535 annually)
August 1, 2016 – July 31, 2017 $2,792.58 monthly ($33,511 annually)
Utilities: tenant responsible for all utilities.August 1, 2016 – July 31, 2017 $2,792.58 monthly ($33,511 annually)
Property Taxes: will remain tax exempt.
Permitted Use: the Subject Property will be used and occupied by tenant solely for the purpose of office and worship space use.
Funding Source:
Proceeds will be deposited into the designated RALF account.
This lease agreement does require a "commission payment" to be made: $1.00 psf x 4,820 = $4,820. This payment will be made to Premier Commercial Realty, the City's contracted lease broker for RALF properties.
Recommendation:
To date, Northern Light Church 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. Northern Light Church is a strong supporter/ contributor to the City of Ramsey Happy Days. This agreement has been reviewed by the City Attorney.
Recommendation:
Approve the attached two year Lease Agreement extension: Northern Light Church use of 6701 Hwy 10 office area.
Recommendation:
Approve the attached two year Lease Agreement extension: Northern Light Church use of 6701 Hwy 10 office area.
Action:
Motion:
Approve the attached two year Lease Agreement extension to Northern Light Church for use of 6701 Highway 10 office area; subject to final review and amendments by the City Attorney.
Approve the attached two year Lease Agreement extension to Northern Light Church for use of 6701 Highway 10 office 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 09:14 AM |
| Kurt Ulrich | Kurt Ulrich | 05/07/2015 10:28 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 05/06/2015 02:23 PM
- Final Approval Date:
- 05/07/2015