5.5.
CC Regular Session
- Meeting Date:
- 06/09/2020
- By:
- Kathy Schmitz, Administrative Services
Information
Title
Approve Anoka County License Center Lease Extension
Purpose/Background:
TIn 2010, the City of Ramsey entered into an initial five-year lease agreement with the Anoka County License Center for space in the Ramsey Municipal Center , with three 5-yr renewal option periods. The Anoka County License Center exercised their first option to renew in 2015, and has indicated their desire to exercise the second option this year (2020) extending the lease to 2025. The lease extension requires the City and the County to "mutually agree" to exercise the option. The purpose of this case is to provide the City's approval of the lease extension. With the action recommended in this case, the original agreement would be extended to June 2025.
Notification:
NA
Observations/Alternatives:
It is Staff’s opinion—that, Anoka County has been a good tenant/steward of the Ramsey Municipal Center, they have consistently paid their rent on time, and have been responsible and responsive tenants. As depicted in the attached original agreement, lease rates increase 2% each year per the attached schedule. Staff checked the scheduled lease rates with the City's lease broker; and it was determined they are at market rate. The original agreement requires payment of a "CAM charge" (common area maintenance). This charge is adjusted each year by the City for inflation and passed along to the tenant. The terms were established to allow the City to periodically evaluate whether the space is needed for municipal purposes. The City does not anticipate that this space will be needed for city operations in the next five years.
If approved, the annual lease payment that the county will make to the city (including CAM Charges) starting July 1, 2020 will be $53,369.90.
If approved, the annual lease payment that the county will make to the city (including CAM Charges) starting July 1, 2020 will be $53,369.90.
Funding Source:
NA
Recommendation:
Staff recommends this agreement be extended for another five years. See attached for details.
Action:
Motion to:
authorize the City Administrator to execute the attached document; which, provides consent to extend a lease agreement with the Anoka County License Center for use of the Ramsey Municipal Center through June 2025.
authorize the City Administrator to execute the attached document; which, provides consent to extend a lease agreement with the Anoka County License Center for use of the Ramsey Municipal Center through June 2025.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 06/04/2020 03:18 PM |
- Form Started By:
- Kathy Schmitz
- Started On:
- 05/21/2020 04:00 PM
- Final Approval Date:
- 06/04/2020