Agenda - Council - 08/26/2014 - Laserfiche WebLink

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discounted). This will also be discussed in closed session/at the time a prospect make a proposal. • Council approved deal range/pricing strategy will be discussed in closed session. • If property is leased by private sector, taxes will be charged by County (estimated at XXXX annually). • An estimated $4.00-$6.00 psf of lease revenues will be redirected for common area maintenance (CAM) charges; this could range from $12,116 to $18,174 annually. This number will be deducted from gross rent. Additionally, if user would like access to lunch room and regular use of meeting rooms an increased CAM charge will be negotiated. • Based on Staff estimations, this space will not be needed by the City for the next seven years. Staff and the City's broker are targeting a seven year lease with a professional services organization (engineering, legal, insurance, title, government, architecture, etc.). • Specific lease agreement details will be negotiated at a later date with an end user; separate council case. • Attached are comments from Briggs & Morgan (the City's real estate Attorney) regarding lease restrictions due to the tax-exempt bonds utilized to construct the RMC. In summary, due to the size of the proposed lease, no restrictions will apply. Funding Source: Lease revenue proceeds. Normal staff duties (Administration and Finance Departments). Recommendation: Staff recommends selection of Premier Commercial Properties to provide broker services to lease the Ramsey Municipal Center. WHY? • The existing relationship with Premier has been positive and effective. • Premier has competitive compensation rates (when compared to CBRE). • Premier has direct/in-depth experience with leasing office space in The COR, in the City of Ramsey, and the Ramsey region. • The proposed extended relationship with Premier is consistent with existing broker relationships: CBRE (selling City owned property) and Premier (leasing/lease management). See background section of case for details. This consistent status of relationships creates efficiencies for Staff work processes. • Staff is confident Premier is capable of effectively marketing/leasing the RMC. Action: Approve the attached contract for professional broker services with Premier Commercial Properties; contingent upon review and amendments from the City Attorney. Attachments Office Space Layout (two pages) Premier Commercial Properties Contract (purpose of case) CBRE Contract Proposal Briggs and Morgan Comments RE Muni Bonds Form Review Inbox Reviewed By Date Diana Lund Diana Lund 08/21/2014 11:48 AM Kurt Ulrich Kurt Ulrich 08/21/2014 01:26 PM Patrick Brama Patrick Brama 08/21/2014 03:19 PM Form Started By: Patrick Brama Started On: 08/20/2014 04:17 PM Final Approval Date: 08/21/2014