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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 /> <br />Consider Leases for Property at 6745 Highway 10 (Anchor's Away Building) <br /> <br />City ttorney Goodrich reviewed that the City has purchased the property at 6745 Highway 10, <br />known the Anchor's Away building through the RALF Funds Program. Two businesses are <br />intereste . leasing space in the building from the City. Midwest Car Care, a Minnesota <br />Limited Lia -lily Company would like to lease the Lube and Carwash portion of the building, <br />The remaining art of the building is cold storage for BoatIR V storage and K &- K Sharp, LLC <br />would like to lea this area. The Quick Lube Lease would be with Midwest Car Care, LLC <br />would have the foll ing terms: <br /> <br />1. Leased space: 5, 66 square feet <br />2. Temi: five year lea <br />3. Rent: $3,494.25/mo with a 3.5% increase per year in each of the four years of the <br />remaining lease term. <br />4. Property Taxes: This po 'on of the building is 60% of the building's valuation and <br />would therefore pay 60% of 1 propertY taxes or approximately $11,770.00 in 2007. <br />5. Insurance: Tenant will maintai azard insurance on the building. <br /> <br />City Attorney Goodrich advised with regar 0 the RV/boat storage, the proposed lease would be <br />with K &- K Sharp, LLC_ 111e terms would' 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_6 er month (1.25 per sq. ft, X 11,200 <br />sq, ft_ divided by 12 ~ $1,166 per month) <br />4. Property Taxes: Tenant to pay - see discussion abov The Tenant's share would be <br />1 Q';'-0f-thO--taxos--Gr-apprQximately...$J"&4.4.110~Q1 <br />5. Insurance: City (Landlord) will maintain hazard insurance. <br /> <br /> <br />City Attorney Goodrich advised pursuant to the City's Management <br />Commercial Properties dated 7/28/06, the management fee will be $4 .00 per month for <br />management of both the cold storage lease and the Midwest Car Care Leas~ Council should <br />keep in mind in negotiating these leases that (1) all net rent proceeds are rem . ed to the Met <br />Council, and (2) Council has previously agreed that to the extent possible, these lea s need to be <br />"market rate". <br /> <br /> <br /> <br />City Attorney Goodrich indicated Mr. Sharp does not want to pay property taxes on this Ie If <br />this is agreed to, $1,648 dollars would be the annual net after the property taxes and haz d <br />insurance are paid by the City. <br /> <br />City Council! September 26, 2006 <br />Page 34 of 39 <br /> <br />-99- <br />