Agenda - Council - 03/12/2013 - Laserfiche WebLink

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CC Regular Session 4. 10. Meeting Date: 03/12/2013 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Information Title: Adopt Policy for Leasing City Owned Property Background: The City of Ramsey owns an inventory of real property. A number of City owned properties hold economic value and provide the City with the opportunity of leasing properties to the private sector. The Community benefits by leasing City owned properties to the private sector as they become taxable. Increasing the overall tax capacity of a community by leasing City owned properties lowers the tax burden for individual tax payers. The purpose of the proposed policy is to guide the process of developing and negotiating leases for the use of City owned properties. Specifically, this policy outlines standards City Staff shall follow as they negotiate with prospective lessors. The desired outcome of this policy is to develop a clear, consistent, transparent, and fair process the City Council, prospects, lessees and Staff can rely on as leasing negotiations transpire. Notification: NA Observations: Due in large part to a number of transportation projects throughout the community, the City has acquired a number of parcels for future right-of-way (ROW). As a result, the City has negotiated a number of leases with private organizations on various City owned properties. Internally, the responsibility of negotiating leases has shifted over the past five years. At one time, the City contracted said function with Premier Commercial Realty (outside vendor). Over the past few years, with turnover in City staff, this function has changed hands multiple times internally. Looking back, it is Staffs observation the City has maintained an inconsistent and unclear policy on how lease agreements are negotiated. This issue has the following real or perceived consequences: *Favoritism or politics *City being "NOT" business friendly *Staff "CONFLICT OF INTEREST" *The City "SHOULD" lease City owned land, even at a discount, to keep it on the tax roles *Frustration and disagreements regarding the following specific inconsistencies: Taxes City or tenant responsibility? Paid monthly to the City or by tenant independently; should the City have an escrow? Insurance Certificate of Insurance, due before closing or not?