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CC Regular Session <br />Date: 12/14/2010 <br />By: Kurt Ulrich <br />Administrative Services <br />Title: <br />Terminate Property Management Contract <br />Information <br />A 60 -day notification is required to terminate the contract with Premier Commercial properties. <br />Item #: 5. 11. <br />Background: <br />In June of 2009, the City reviewed its property management agreement with Premier Commercial Properties and <br />removed 6701 Hwy 10 (the Youth First Building) and 6101 Hwy 10 (Ralph's Gun and Pawn property) from the list <br />of managed properties. Currently, the sole property under management by Premier Commercial Properties is the <br />property 6745 Hwy 10 (Midwest Car Care). The monthly fee for this service (see attached agreement) is $400 per <br />month. <br />Observations: <br />The property management fee of $400 per month may be paid from rent receipts per the agreement with the <br />Metropolitan Council under the Right -of -way Acquisition Loan Fund (RALF) program, while City staff time to <br />manage the property is not reimbursable. However, contracted time (e.g., plumber, electrician, HVAC, etc.) is a <br />reimbursable expense. <br />Based upon our experience with the property and the fact that it is currently fully leased, staff believes that the City <br />could pick -up the management of the property at 6745 Hwy 10 with a nominal impact to existing staff and cancel <br />the Premier Commercial Properties contract. This would be an additional expenditure of staff time by the City, but <br />would likely result in more monies flowing back into the RALF fund. <br />Recommendation: <br />Consider termination of the property management contract with Premier Commercial Properties for the property at <br />6745 Highway 10, with a 60 day notice of termination provided pursuant to the contract. <br />Funding Source: <br />Not Applicable. <br />Council Action: <br />It is recommended that the Council terminate the property management contract with Premier Commercial <br />Properties for the property at 6745 Highway 10. <br />Lease Management Background Info <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich (Originator) Kurt Ulrich 12/09/2010 06:35 PM <br />Form Started By: Kurt Ulrich Started On: 12/09/2010 <br />Final Approval Date: 12/09/2010 <br />