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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 />. <br /> <br />Tabled. <br /> <br />~ #14: Consider Leases for Property at 6745 Highway 10 (Anchor's Away Bnilding) <br /> <br />City' ttorney Goodrich reviewed that the City has purchased the property at 6745 Highway 10, <br />kno as the Anchor's Away building through the RALF Funds Program. Two businesses are <br />interest in leasing space in the building from the City. Midwest Car Care, a Minnesota <br />Limited . ability Company would like to lease the Lube and Carwash portion of the building. <br />The remairu part of the building is cold storage for Boat/R V storage and K & K Sharp, LLC <br />would like to ase this area. The Quick Lube Lease would be with Midwest Car Care, LLC <br />would have the lowing terms: <br /> <br />1. Leased space: 266 square feet <br />2. Term: five year se <br />3. Rent: $3,494.25/m th with a 3.5% increase per year in each of the four years of the <br />remaining lease term. <br />4. Property Taxes: This p rtion of the building is 60% of the building's valuation and <br />would therefore pay 60% 0 its property taxes or approximately $11,770.00 in 2007. <br />5. Insurance: Tenant will maint 'n hazard insurance on the building. <br /> <br />City Attorney Goodrich advised with~. d to the.RV/boat storage, the proposed lease would be . <br />with K & K Sharp, LLC. The terms wou 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 opf:<\.r:s . <br />3. Rent: $1.25 per square foot per year of $1,16~.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\bove. The Tenant's share would be <br />40% of the taxes or approximately $7,844.00 in 200 . <br />5. Insurance: City (Landlord) will maintain hazard insur ,ce. <br /> <br /> <br />City Atto:ney Good~ich advised pursuant to the City' s Manage~nt 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 C~ iease. Council should <br />keep in mind in negotiating these leases that (1) all net rent proceeds'&e remitted to the Met <br />Council, and (2) Council has previously agreed that to the extent possible, ~;~ leases need to be <br />"market rate".'u~ <br /> <br />City Attorney Goodrich indicated Mr. Sharp does not want to pay property taxes on is lease. If <br />this is agreed to, $1,648 dollars would be the annual net after the property taxes an <br />insurance are paid by the City. <br /> <br /> <br />. <br /> <br />-252- <br /> <br />City Council / September 26,2006 <br />Page 34 of 39 <br />