Agenda - Council - 07/23/2013 - Laserfiche WebLink

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CC Regular Session 4. 5. Meeting Date: 07/23/2013 By: Diana Lund, Finance Information Title: Enter Into Lease Agreement With Pact Charter School For Storage Space at 6701 Highway 10 Background: Premier Properties, the contracted property managment company that now handles the property management of several properties on Highway 10 for the City, had presented to the City Council a Letter of Intent (LOI) from Pact Charter School at its worksession on June 25, 2013, with formal adoption of the LOI at the City Council meeting of June 25, 2013. Per the LOI, Pact Charter School proposed to enter into a lease agreement for 420 square feet of heated storage space and 5,040 square feet of cold storage space at 6701 Highway 10 with the intention of storing 10 school buses. The lease price would be $1.00 per square foot which calculates to $5,460 per year or $455.00 per month. The LOI also included that the Pact Charter School would make the following improvements to the space: Door Openers for garage doors and electrical sub -meter and wiring for outlets to power engine block heaters. The City Council made the request that these improvements remain the property of the City and the proposed lease agreement states as such (Section 8 of lease). Observations/Alternatives: SUMMARY OF LEASE: Premises: 22,000 square feet, paved/fenced in area only Term: two year term, beginning March 1, 2013 Termination: one year termination clause for City Insurance: $1,000,000 public liability insurance Rent: $650 monthly, $7,800 annual Property Taxes: City responsible (similar to other RALF properties, covered in base rent)The 2012 taxes on the entire parcel were $12,268.00. Permitted Use: the subject Property will be used and occupied by tenant solely for the purpose of outside storage, display and sales of boats, snowmobiles and similar recreation equipment and accessories as an accessory use of the Tenant's primary business operation located at 6781 West Highway 10.