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<br />CASE # 5 <br /> <br />CONSIDER OFFER TO LEASE PROPERTY <br />LOCATED AT 6701 HWY 10 <br /> <br />By: Sean M. Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />The City of Ramsey purchased the property located at 6701 utilizing funds from the RALF <br />program. Currently, a portion of the building is being leased by Youth First and K & K Sharp. <br />There currently is a tax exempt, vacant, bay consisting of 420 square feet of warehouse and 160 <br />square feet of office space. RlDESAFE, a group transportation company catering to individuals <br />who don't want the risks associated with drinking and driving, has submitted a lease proposal to <br />utilize the aforementioned space. The space would be used to house a company vehicle and to <br />office out of that location. The offer from RIDESAFE is attached and a summary is provided as <br />option A. Premier Commercial Properties, the City property manager for this site, has reviewed the <br />proposal and has made the determination that the offer is not market rate. The details of these <br />findings are provided in the attached letter and a Summary is presented as Option B. There are other <br />issues concerning restrooms that would also have to be worked through before a final lease solution <br />can be reached. Staff is looking for direction to accept, reject, or to make a counteroffer to the <br />prospective tenant. <br /> <br />Option A (RIDE SAFE proposal) <br /> <br />Term: October 1,2009 - March 31, 2010 with an option for a 6 month renewal <br /> <br />Rent: $125/mo. This amount is inclusive of maintenance (6 months prepaid). <br /> <br />Taxes: Included in proposed rent above. <br /> <br />Uses: Store one RlDESAFE Vehicle and to utilize office space. <br /> <br />Insurance: Tenant maintain public liability insuranc~ on Subject Parcel. <br /> <br />Utilities: Included rent proposed above. <br /> <br />Subletting: Tenant may not sublet during lease term. <br /> <br />Improvements: Tenant is requesting the City install an automatic door opener ($600-$700) <br />and the Tenant will incur the costs associated with the changing of locks <br />(approximately $75-$150). <br /> <br />Comments: The proposed lease is not considered "market rate". <br />