Q&A
DCAS's role in leasing properties and lease negotiation process
1:20:00
·
3 min
The DCAS representative explains the agency's role in leasing properties from private landlords and the lease negotiation process. They clarify the differences between city-owned properties and those leased from private landlords.
- DCAS leases properties from private landlords to support city agencies
- The agency can include specific terms in leases regarding expiration and notice
- There are cases where private entities operate in city-leased spaces, such as daycares
- The representative acknowledges the challenges in lease renewals and negotiations with private landlords
Laura Ringelheim
1:20:00
So thank you for your your question.
1:20:02
And and you raised a lot of issues that I'm I'm gonna try and break down.
1:20:09
So the instance that you are talking about in Iowa was not at Decast.
1:20:13
I have been there 8 years, but was not there during this particular instance.
1:20:16
However, 4 dash 203 of the ad code deals with city owned property in the way the city leases or licenses that under a short term agreement.
1:20:29
The issue that you're talking about is a private landlord that leases to the city, and that's under that this part of the code does not apply.
1:20:37
So when we lease what we call lease in.
1:20:42
So we lease from private landlords to support city agencies.
1:20:46
Those are negotiations that we do, and we could put in the lease.
1:20:49
And and we certainly could put something in the lease to talk about expiration and how much notice the landlord gives.
1:20:58
And I think what you're talking about here is a day care, which would have then been sometimes a private entity comes in to run that day care.
1:21:07
And it's a city's lease, but we have an organization that's running that.
1:21:11
That's generally not the model.
1:21:13
Usually, it's the city agency itself.
1:21:15
But there are times when a city agency even knows it's going to the lease is gonna expire, the landlord's not gonna renew.
1:21:22
So we can certainly talk to you about how we can change our language that we put into the lease before entering into that agreement with the landlord to prevent exactly what you're talking about.
1:21:33
Currently, there's no there are no regulations and this would not address that issue.
1:21:39
So we're absolutely this is an issue for even city agencies that end up where landlord does not want to renew or is not reasonable with the terms.
1:21:50
But generally, it's it's free market without a lot of controls around those areas.
1:21:56
So, absolutely, we can talk about what what counsel thinks that we would like to see in the leases in order to at least know when we're when we start negotiating, which is about 2 years before expiration Mhmm.
1:22:10
How we can either know that the landlord's going to permit the city to stay as tenant or it's subtenant, not subtenant, but operator, or whether we need to find new space.
Jennifer Gutiérrez
1:22:21
Can I Jared, can I just ask a couple more questions?
1:22:23
My apologies.
Lincoln Restler
1:22:23
Take as much time.
1:22:24
Thank you.
1:22:25
My breakfast.
Jennifer Gutiérrez
1:22:27
So you're right.
1:22:28
It's I THINK THESE ARE UNIQUE LEAST AGREEMENTS THAT THE CITY GOES IN TO GO IN WITH TO PRIVATE LANDLORDS FOR, IN THIS CASE, AND IN MULTIPLE CASES IN MY DISTRICTS.
1:22:38
SO NOT Just A DAY CARE CENTRE.
1:22:39
I'M HIGLATING WESTERZENIA BUT ALSO I HAVE MULTIPLE SENIOR CENTRES.
1:22:42
That are in the same scenario.
1:22:44
So I get that that is probably the least common, but it happened very recently just in Bridgeway during the summer.
1:22:52
And so I'm glad that you're open to the communication, but I just think it's a little concerning that that the administration has been seeing this happen for multiple years now and that it's not something that is like just one extra step.
1:23:09
At this point, for in these particular scenarios of privately owned properties, does Decast have a process to provide tenants with notice that their lease is expiring?
