CC MEETING: September 20, 2016
DATE: September 14, 2016
TO: Leonard Martin, City Manager
FROM: Krystle Nelinson, Development Program Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Management Contract With Fairway 427, LP For Asset Management Services For The Meadows Apartments Located At 1404 Fannidella Drive In An Amount Not To Exceed $40,000.00.
Body
BACKGROUND:
On the September 20 agenda, the City Council will have the opportunity to purchase a portion of the Meadows Apartments located at 1404 Fannidella Drive. There are 26 units located at this address. Fairway 427, LP - the current owners - will retain the remaining 50 units located at 1402 Fannidella Drive.
Staff has determined that the City will require the services of an asset manager to provide property maintenance services, operations management including rent collections and tenant/City communications, financial reporting, accounting services and to manage the preparation of the site for redevelopment as part of the Crosby Road Redevelopment initiative. Staff is recommending that Fairway 427, LP be retained to manage the asset as they are already managing the site and are familiar with the complex's operations.
Under the terms of the management contract, Fairway 427, LP will manage the complex for a period of up to 180 days after closing and will be responsible for the winding down of the property and the orderly vacating of the tenants.
FINANCIAL IMPLICATIONS:
The total cost of the management contract is $36,000, being $6,000 per month for 6 months. Funding for this contract is available in the Transit-Oriented Capital Account. Staff is also seeking the allocation of an additional $4,000 to be used as needed for any potential property maintenance. The City will retain this contingency fund, and Fairway 427, LP will need City authorization to obtain the funding for property maintenance. At the close of the contract, any remaining contingency funds will be rem...
Click here for full text