Agenda - Council - 11/24/2009 - Laserfiche WebLink

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Background: CONSIDER OFFER TO AMEND LEASE WITH NORTHWEST ANOKA COUNTY COMMUNITY CONSORTIUM LOCATED AT 6701 HWY 10 Enclosures: Site Location Map Second Amendment to lease By: Sean M. Sullivan, Economic Development Coordinator CASE # mall The City of Ramsey has leased the easterly 4,820 square feet of the front portion of the property located at 6701 Hwy 10 to the Northwest Anoka County Community Consortium (Youth First) since March of 2007. Recently, Youth First began utilizing the westerly 4,820 square feet on a temporary basis with the community theater group. It appears that usage of this side of the building will become more permanent in nature and it would be prudent to officially amend the current lease to include the aforementioned property. The second amendment to the lease is attached for review. Due to the fact that the entire building is now being proposed to be utilized on a full time basis the City Council should consider ongoing marketing operations. Currently Premier Commercial Properties has the westerly 4,820 square feet of the property listed for the city and is actively marketing it. Staff is seeking direction from City Council regarding whether to continue marketing the property for rent generating users or to remove it from the market. The cost of utilities (gas and electric) for the property is approximately $9,355.41 per year (gas = $4225.12; electric = $5129.69). Currently, the City pays 40% of the gas bill or approximately $1690.29 per year, Youth First pays 60% or approximately $2551.63. The City has been paying the electric bill for the structure due to the building having a single electrical meter with multiple users. This cost is offset by the lease revenue received from the entire building. City Council should consider the level of participation of utility costs into the future for this parcel. As City Council is aware, 50% of the ad revenue from the new city newsletter is provided to the city by our current marketing agent. An additional 7% has been dedicated to Youth First. In an effort to further assist Youth. First, the City Council could consider advancing the funds to Youth First. The amount of ad revenue available to be advanced to Youth First is estimated to be $5000 for 2010. Funding Source: Shared utilities funded via lease revenue for entire structure. Recommendation: Staff recommends: a) execution of the attached lease. b) advancing the ad revenue in an amount of $5,000 to Youth First. c) Council direct staff regarding marketing of the westerly office space and the utility participation.