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Our Mission: To work together to respasibtyr grow oYU community, and to provide quality, cost.effecdve, and efficient government services. <br />CC Regular Session <br />Meeting Date: 02/10/2015 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />Information <br />Title: <br />Approve Lease Agreement Extension with Pro Power Sports and Marine INC <br />Purpose/Background: <br />Purpose: <br />Approve Lease Agreement Extension with Pro Power Sports & Marine, Inc <br />4. 5. <br />Background (City Property) <br />The City owns a parcel located at 6781 U.S. Highway 10. The property was purchased with MnDOT RALF dollars <br />(revolving acquisition loan fund) for the purpose of future ROW (right of way) for U.S. Highway 10. The City has <br />the ability to lease RALF properties until they are needed for U.S. Highway 10 Improvements. Attached to this case <br />is a reference map of the subject property. <br />Background (Lease) <br />Attached to this case is the "original lease" the City of Ramsey entered into with Pro Power Sports in March of <br />2014. The new lease covers the identical premises, terms and conditions --other than rent price. Per <br />recommendation of the City's lease broker (Marty Fisher with Premier Commercial Realty), the rent price was <br />increased from $525 per month to $540.75 per month. The new lease, attached, is technically an amendment or <br />extension to the original lease. <br />Attached to this case is a rent analysis. The City "nets" very little from this lease (about $700 annual). However, the <br />property is being put back on the tax rolls which will generate an estimated $2,887 in total taxes (about 1/4 for the <br />City). Broker commission and property management are included in this analysis. <br />Observations/Alternatives: <br />SUMMARY OF LEASE: <br />Premises: 15,000 square feet, paved/fenced in area only <br />Term: one year term, beginning March 1, 2015 <br />Termination: one year termination clause for City <br />Insurance: $1,000,000 public liability insurance <br />Rent: $540.75 monthly, $7,500 annual <br />Property Taxes: City responsible (similar to other RALF properties, covered in base rent) The 2014 taxes on <br />premises was about $2,700. <br />Permitted Use: the subject Property will be used and occupied by tenant solely for the purpose of outside <br />storage, display and sales of boats, snowmobiles and similar recreation equipment and accessories as an <br />