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Redevelopment Authority approves listing contract for 63 Craft Street; commission to be paid from planning option account
Summary
The Redevelopment Authority approved a commercial lease listing with River Valley Realty LLC for 63 Craft Street, authorizing a 6% commission of the initial 36-month lease term (stated as $15,120) to be paid from the planning option agreement account and reimbursed from lease revenue once a tenant occupies the property.
The Redevelopment Authority of the City of La Crosse approved a commercial lease listing contract with River Valley Realty LLC for 63 Craft Street at its October meeting and authorized funding of the broker commission from the authority’s planning option agreement account.
Andrew Train summarized the proposed arrangement, saying the RDA had recently closed on the industrial building bought from Damon Olsen and planned to lease it until the full land assembly is available. River Valley Realty proposed a minimum 36‑month lease with a listed rent of about $7,000 per month. The contract specifies the broker commission as 6% of the initial lease term (36 months); using the listed rent, the commission was presented to the board as $15,120, to be paid after contract signing and reimbursed from future lease revenue once a tenant begins paying rent.
Board members asked whether the RDA would owe property taxes on the parcel and whether the commission would change if actual lease terms or rent differed from the listed figures. Andrew and other staff clarified that because the redevelopment authority now owns the property it is tax‑exempt and that the commission figure in the contract is based on the initial lease term; staff said they would confirm contract language about the calculation if needed. Andrew also noted the property is inside a tax increment district and that taxing jurisdictions will continue to receive the same property tax revenue they received before the TID was created.
A motion to approve the listing and to fund the commission from the planning option agreement account was made and seconded by Michael; the board approved the motion by voice vote. The authority also discussed that a separate property management agreement would be executed with the broker or a manager once a tenant is secured so day‑to‑day maintenance and emergency responses would be handled under that later contract.
The board recorded no roll-call tally for the public record beyond the affirmative voice vote; staff said the commission payment would be recouped from lease revenue after occupancy.
