Consider Lease Terms for Dennis Sharp for Properties at 6701 and 6745 Highway 10

The city purchased, with RALF funds, the properties at 6701 and 6745 Highway 10 in 2006.  Since that date, the city has leased the cold storage portions of these properties to Dennis Sharp companies.  Starting in 2008 the city required that the leases be amended to collect a base rent plus each property's pro-rata share of property taxes.  Mr. Sharps current leases are through July 31, 2011.

The rents paid by Mr. Sharp the last couple of years are as such:              
                                                                            6701 Highway 10:  
                                                                                                Thru July 31, 2010:  $3,266/mo
                                                                                                Thru July 31, 2011:  $2,983.50/mo
                                                                            6745 Highway 10:
                                                                                                Thru July 31, 2010: $1,886/mo
                                                                                                Thru July 31, 2011: $1,820/mo

Mr. Sharp contacted the City asking for a reduction in the lease rates beginning August 1, 2011 due to his concerns over a net operating loss that he shows on his financial statement for 2010.  A copy of this statement will be presented at the worksession.