Adopt Resolution #20-123 Approving Addendum to Lease with Youth First Community of Promise

Purpose:  Consider request by Youth First to use West 4,820 SF of 6701 Hwy 10 NW from June 15 until August 31, 2020.

Background: Youth First approached the City to see if it would be willing to allow the use of the West 4,820 SF due to the Covid-19 Pandemic.  The Summer program has approximately 40 kids and they typically spend time outside and inside.  On days of extreme heat, or rain, Youth First feels that it will be difficult to maintain proper social distancing for its kids.  In order to accommodate for the summer program they believe the occasional use of the West 4,280 SF would allow them to "socially distance" properly during these time periods of hot or wet weather. Youth First currently leases the Southerly 4,820 SF of 6701 Hwy 10 NW. Market rate for space of this type is approximately $12.00 / SF which would equate to $4,820 / month.   The terms of the existing lease include $1.00 rent, and a requirement to keep liability insurance. The payment of utilities is outlined below:

Utilities. The cost of City services, natural gas, and electricity shall be shared such that Tenant pays 30%. Tenant is solely responsible for paying for all other utilities servicing the Premises, including telecommunications. Tenant is also responsible for paying for the removal of all trash and recycling materials generated as a result of Tenant' s use of the Premises. Landlord is not responsible for any interruption in any services beyond the reasonable control of Landlord. Landlord is responsible for snow removal from the parking lot and drive lanes.  Tenant is responsible for snow and ice removal from sidewalks, walkways, and any other pedestrian walkways on the Premises. 
 

N/A

Observations:
City Staff has worked with Youth First and the City Attorney to draft an Addendum to the existing lease that would allow for the use of the space from June 15 until August 31, 2020.  Staff will continue to market the property for future use.  

Key Addendum Terms

• Rent -   $1.00 for the additional West 4,820 square feet.
• Term -   June 15, 2020 to August 31, 2020. 
• Liability - Liability Insurance to be provided by Youth First Community of Promise
• Use - West 4,820 SF of space to be used in times of excessively hot weather, rain and other times where proper "social distancing" needs to be utilized.
• Utilities (As defined above)- Cost of City services, natural gas, and electricity shall be shared such that Tenant pays an additional 30% for the additional space (total of 60% of utilities for both spaces).

Tenant is solely responsible for paying for all other utilities servicing the Premises, including telecommunications. Tenant is also responsible for paying for the removal of all trash and recycling materials generated as a result of Tenant' s use of the Premises. Landlord is not responsible for any interruption in any services beyond the reasonable control of Landlord. Landlord is responsible for snow removal from the parking lot and drive lanes.  Tenant is responsible for snow and ice removal from sidewalks, walkways, and any other pedestrian walkways on the Premises. (Based on use of both sides the percentage will increase from 30% to 60% of the utility bill)

Need for Temporary Additional Space
Youth First has been serving the youth of Ramsey since 2007.  Based on Covid-19, and social distancing guidelines, Youth First has asked the City to consider the use of the adjoining space. It is hereby noted that Youth First must abide by all social distancing guidelines as laid out by various Executive Orders. Staff will complete a final analysis on whether Youth First will be able to host activities with 40 attendees as noted above. Approval of the lease will be contingent upon that finding.

Alternatives:

1. Approve Resolution #20-123 Approving Addendum to Lease with Youth First Community of Promise (As presented)
2. Approve Resolution #20-123 Approving Addendum to Lease with Youth First Community of Promise (With Modifications)
3. No Action - (Do not lease additional space to Youth First Community of Promise)

The City is foregoing potential lease revenue (for the RALF Fund) that could be generated from the market rate leasing of this space.  In addition, The RALF Fund Revenue is paying the remaining balance of the utility bill.

Based on discussion.

Motion to Approve/Deny Resolution #20-123 Approving Addendum to Lease with Youth First Community of Promise; subject to City Attorney review as to legal form and compliance with applicable Executive Orders in regard to public health.