Laserfiche WebLink
Drafted by Patrick Brama, Adopted by the Council 03/12/2013 <br />BACKGROUND <br />PURPOSE <br />City of Ramsey <br />POLICY FOR LEASING CITY OWNED PROPERTY <br />The City of Ramsey owns an inventory of real property. A number of City owned properties <br />hold economic value and provide the City with an opportunity for leasing properties to the <br />private sector. <br />The community benefits by leasing City owned properties to the private sector as the local <br />property tax base is increased. Increasing the overall tax capacity of a community by leasing <br />City owned properties lowers the tax burden for City residents. <br />The purpose of this policy is to guide the process of developing and negotiating leases for the use <br />of City owned properties. Specifically, this policy outlines standards City Staff shall follow as <br />they negotiate with prospect lessees. <br />The desired outcome of this policy is to develop a clear, consistent, transparent and fair process <br />the Council, prospective lessees and Staff can rely on in lease negotiations. <br />LEASE CONDITIONS <br />The City Council shall make the final decision on all lease agreements. Lease conditions <br />identified below are particularly important in lease negotiations. Additional lease conditions <br />may be included in City owned land leases on a case -by -case basis. <br />1. Lease Term <br />Negotiable. Where appropriate, leases shall include an early termination clause, <br />at the City's discretion, in order to facilitate City need for higher priority uses; <br />such as, right of way or other public purposes. <br />2. Rental Rate <br />Rental rates shall be structured as follows: <br />a. The tenant shall be responsible for base rent. Base rent shall be <br />determined by market value rent. Staff shall solicit recommendations <br />from creditable real estate professionals for a market rental rate. The <br />average rate of said recommendations shall be the City's target rental rate. <br />The City shall not lease City owned property for less than 80% of said <br />market rate. <br />b. The tenant shall be responsible for purchasing public liability insurance in <br />addition to base rent. See section three below for details. <br />Policy for Leasing City Owned Land Page 1 of 3 <br />