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CC Work Session 2.2. <br />Meeting Date: 06/14/2011 <br />By: Diana Lund, Finance <br />Title: <br />Consider Lease Terms for Dennis Sharp for Properties at 6701 and 6745 Highway 10 <br />Background: <br />The city purchased, with RALF funds, the properties at 6701 and 6745 Highway 10 in 2006. Since that date, the <br />city has leased the cold storage portions of these properties to Dennis Sharp companies. Starting in 2008 the city <br />required that the leases be amended to collect a base rent plus each property's pro -rata share of property taxes. Mr. <br />Sharps current leases are through July 31, 2011. <br />The rents paid by Mr. Sharp the last couple of years are as such: <br />6701 Highway 10: <br />Thru July 31, 2010: $3,266/mo <br />Thru July 31, 2011: $2,983.50/mo <br />6745 Highway 10: <br />Thru July 31, 2010: $1,886/mo <br />Thru July 31, 2011: $1,820 /mo <br />Mr. Sharp contacted the City asking for a reduction in the lease rates beginning August 1, 2011 due to his concerns <br />over a net operating loss that he shows on his financial statement for 2010. A copy of this statement will be <br />presented at the worksession. <br />Funding Source: <br />These properties were purchased with RALF funds and any rental revenue generated is used to cover costs of the <br />property. <br />Council Action: <br />Mr. Sharp will be present to discuss his rental proposal. <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 06/08/2011 05:41 PM <br />Form Started By: Diana Lund Started On: 06/08/2011 12:05 PM <br />Final Approval Date: 06/08/2011 <br />