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<br />Case #13: <br /> <br />Request for Preliminary Plat and Preliminary Site Plan Review of Ebony <br />Woods; Case ofDPM Investments, Inc. <br /> <br />Tabled. <br /> <br />Case #14: <br /> <br />Consider Leases for Property at 6745 Highway 10 (Anchor's Away Building) <br /> <br />City Attorney Goodrich reviewed that the City has purchased the property at 6745 Highway 10, <br />known as the Anchor's A way building through the RALF Funds Program. Two businesses are <br />interested in leasing space in the building from the City. Midwest Car Care, a Minnesota <br />Limited Liability Company would like to lease the Lube and Carwash portion of the building. <br />The remaining part of the building is cold storage for Boat/R V storage and K & K Sharp, LLC <br />would like to lease this area. The Quick Lube Lease would be with Midwest Car Care, LLC <br />would have the following terms: <br /> <br />1. Leased space: 5,266 square feet <br />2. Term: five year lease <br />3. Rent: $3,494.25/month with a 3.5% increase per year in each of the four years of the <br />remaining lease term. <br />4. Property Taxes: This portion of the building is 60% of the building's valuation and <br />would therefore pay 60% of its property taxes or approximately $11,770.00 in 2007. <br />5. Insurance: Tenant will maintain hazard insurance on the building. <br /> <br />City Attorney Goodrich advised with regard to the RV/boat storage, the proposed lease would be <br />with K & K Sharp, LLC. The terms would be similar to those for the adjacent NAU building <br />and are as follows: <br /> <br />1. Leased space: 11,200 square feet <br />2. Term: One year with 5 one year renewal options <br />3. Rent: $1.25 per square foot per year of $1,166.66 per month (1.25 per sq. ft. X 11,200 <br />sq. ft. divided by 12 = $1,166 per month) <br />4. Property Taxes: Tenant to pay - see discussion above. The Tenant's share would be <br />40% of the taxes or approximately $7,844.00 in 2007. <br />5. Insurance: City (Landlord) will maintain hazard insurance. <br /> <br />City Attorney Goodrich advised pursuant to the City's Management Agreement with Premier <br />Commercial Properties dated 7/28/06, the management fee will be $400.00 per month for <br />management of both the cold storage lease and the Midwest Car Care Lease. Council should <br />keep in mind in negotiating these leases that (1) all net rent proceeds are remitted to the Met <br />Council, and (2) Council has previously agreed that to the extent possible, these leases need to be <br />"market rate". <br /> <br />City Attorney Goodrich indicated Mr. Sharp does not want to pay property taxes on this lease. If <br />this is agreed to, $1,648 dollars would be the annual net after the property taxes and hazard <br />insurance are paid by the City. <br /> <br />City Council / September 26, 2006 <br />Page 34 of 39 <br />