4.6.
CC Regular Session
- Meeting Date:
- 08/22/2017
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Lease Agreement Amendment: Northern Light Church: 6701 Hwy 10 Office Space
Purpose/Background:
Purpose of Case:
Approve Two Year Lease Agreement extension (amendment).
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, 2017. 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 (amendment).
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, 2017. Currently, Northern Light Church utilizes approximately 4,820 square feet of office space at 6701 U.S. Highway 10 for a worship / gathering area.
Notification:
NA
Observations/Alternatives:
Premises: 4,820 square feet
Term: two-year term, beginning November 1, 2017
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, 2017
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)
Year 3 (11/1/17 through 10/31/18): $2,876.10
Year 4 (11/1/18 through 10/31/19): $2,962.38
Utilities: tenant responsible for all utilities.Year 4 (11/1/18 through 10/31/19): $2,962.38
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 Lease Agreement Amendment: case of Northern Light Church for use of 6701 Highway 10 office area; subject to final review and amendments by the City Attorney.
Approve the attached Lease Agreement Amendment: case of 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 |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 08/17/2017 03:30 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 08/07/2017 04:43 PM
- Final Approval Date:
- 08/17/2017