Minutes - Council - 01/13/2009 - Laserfiche WebLink

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" current depressed market for commercial lease space, and that the tenant is accepting the space "as is" with no improvements to the finishes or HV AC. This would yield a lease revenue of range of$1O,675 - $14,945 per month. Damage deposit equal to one month's rent. Staff is in the process of determining the tax liability of this lease. MN Renaissance is a taxable entity, and therefore, staff is anticipating a tax liability on the lease of this tax exempt space. Due to the temporary nature, the county may require a payment in lieu of taxes, generally 40% of the lease revenue collected by the tax-exempt entity. The City would be responsible for clearing the snow form parking lots; MN Renaissance would be responsible for clearing sidewalks and walkways. MN Renaissance would be responsible for all janitorial cleaning and light maintenance of the facility. MN Renaissance would provide all supplies for such maintenance. MN Renaissance would establish garbage and recycling service for their own use on site. MN Renaissance would pay utilities (gas, electric, water, sewer) based upon the incremental additional use that is represented by their occupancy. The City currently utilizes the lower level old city hall/fire station no. 2 as well as the lower level garage at the old police department. MN Renaissance has requested a "mold check" be completed in the next week prior to signing a lease agreement to ensure the space does not have mold issues. Staff proposes to split the costs of such work by a certified specialist with MN Renaissance. Staff anticipates costs associated with preparing the building for this temporary lease, they include, re-keying several doors estimated at $1,500, replacing battery packs on exit lighting estimated at $300 - $400, replacing parking lot lighting estimated at $600, and replacing internal ballasts/bulbs estimated at $300. . . . . . . . Further discussion: Councilmember Look stated that this is a tremendous opportunity to I generate some income and expressed the hope that they lease longer than three months. Councilmember McGlone stated he had earlier voiced his concern of the vacant building owned by the City and he wanted to extend kudos to staff for taking care of leasing some of them out. Councilmember Dehen stated that he is in favor of this as long as we get applicable insurance requirements in place. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Jeffrey, Dehen, Look, McGlone and Wise. Voting No: None. Absent: Councilmember Elvig. Case #10: Discussion of Lease of Office Space at Ramsey Municipal Center to Anoka County License Bureau Assistant City Administrator Nelson stated that this item was scheduled to be discussed at the work session held earlier this evening. Staff explored the opportunity to lease some space in the new Municipal Center to the Anoka County License Bureau. They currently lease space at 6111 Highway #10 NW and their lease is up in June 2010. Ms. Nelson City Council/January 13, 2009 Page 29 of31