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HomeMy Public PortalAboutAB 15-176 McCall Avenue Home Lease AssignmentMcCALL CITY COUNCIL 216 East Park Street AGENDA BILL McCall, Idaho 83638 Number AB 15-176 Meeting Date September 24, 2015 AGENDA ITEM INFORMATION  SUBJECT: Greystone Village #3, Lot 3, Block , 1539 McCall Avenue, Lease Termination and Establishment of a New Lease from Hannes and Deborah Kury to Scott and Shawna Johnson Department Approvals Initials Originator or Supporter   Mayor / Council     City Manager     Clerk  Originator   Treasurer     Community Development     Police Department     Public Works     Golf Course    COST IMPACT: $2900 Parks and Recreation    FUNDING SOURCE: Additional Rent Airport      Library    TIMELINE: October 1, 2015 Information Systems      Grant Coordinator    SUMMARY STATEMENT: The owner of 1539 McCall Avenue, Hannes and Deborah Kury, have a sale pending and would like to request termination of the existing lease at the time of closing with a subsequent request for establishment of a new lease to Scott and Shawna Johnson. Upon their request the purchasers have been provided a copy of the proposed Amended and Restated Ground Lease V2. With this transaction the City will receive $2900 in additional rent. Per the Kury’s lease the Lessee agrees, for itself, its successors and assigns, that upon assignment of the Lease to a subsequent purchaser of the improvement(s) constructed on the leased premises, Lessee will pay additional rent equal to ten percent(10%) of the equity the Assignee had in the improvement(s), or Five Thousand Dollars ($5,000.00), whichever is less. For the purpose of computing the amount of additional rent due, "equity" is defined as the difference between the purchase price measured at the date of closing the purchase of the improvement(s) by the Assignee, and the gross sales price to a new Assignee after deduction of real estate commissions, title insurance payable by Assignee, and Assignee's portion of the escrow agent's closing fee. This additional rent shall be paid each time an assignment of this lease is made.  RECOMMENDED ACTION: Approve termination of the existing lease of 1539 McCall Avenue from Hannes and Deborah Kury at the time of closing and subsequently approve the new Amended and Restated Ground Lease V2 for Greystone Village #3, Lot 3, Block 3, 1539 McCall Avenue, to Scott and Shawna Johnson and authorize the Mayor to sign all necessary documents.  RECORD OF COUNCIL ACTION  MEETING DATE ACTION