4.6.
CC Regular Session
- Meeting Date:
- 05/27/2014
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title
Approve Lease Agreement with Northern Starz Children's Theatre Company: Old Municipal Center
Purpose/Background:
Background (case):
Staff was recently approached by Northern Starz Children's Theatre Company with a request to lease space located in a City owned building. Specifically, the former Police Building second floor located on the Old Municipal Center campus (15153 Nowthen Boulevard). A summary of lease terms can be found in the "Observations" section of this case. Attached to this case is the proposed lease.
This proposed lease was reviewed by the City Council on May 13 in worksession. Four of seven Councilmembers were present, and all indicated general support for the proposed lease agreement. Additionally, Staff did receive separate Council direction to bring back the City's "Policy for Leasing City Owned Land" for discussion regarding nonprofit organizations. Staff anticipates the requested policy discussion to take place in June or July.
Background (Northern Starz):
Northern Starz Children's Theatre is a registered nonprofit children's performing arts organization established in 2009. Today, this organization is based in Ramsey and performs at the new Northgate Church Performing Arts Center. It is the goal/intention of Northern Starz to become a permanent facet in the City of Ramsey.
In order to properly prepare and operate, Northern Starz conducts 3-5 'performance practices' per week. Today, Northern Starz conducts an irregular/inconsistent practice schedule (i.e. different locations and times each week based on availability of low cost options). In an effort to improve and establish their organization in Ramsey, Northern Starz has identified securing a regular/consistent practice facility a priority. The purpose of the proposed lease agreement is to temporarily provide Northern Starz with a regular practice facility in Ramsey; and provide a window of time in which a permanent solution can be secured.
Staff was recently approached by Northern Starz Children's Theatre Company with a request to lease space located in a City owned building. Specifically, the former Police Building second floor located on the Old Municipal Center campus (15153 Nowthen Boulevard). A summary of lease terms can be found in the "Observations" section of this case. Attached to this case is the proposed lease.
This proposed lease was reviewed by the City Council on May 13 in worksession. Four of seven Councilmembers were present, and all indicated general support for the proposed lease agreement. Additionally, Staff did receive separate Council direction to bring back the City's "Policy for Leasing City Owned Land" for discussion regarding nonprofit organizations. Staff anticipates the requested policy discussion to take place in June or July.
Background (Northern Starz):
Northern Starz Children's Theatre is a registered nonprofit children's performing arts organization established in 2009. Today, this organization is based in Ramsey and performs at the new Northgate Church Performing Arts Center. It is the goal/intention of Northern Starz to become a permanent facet in the City of Ramsey.
In order to properly prepare and operate, Northern Starz conducts 3-5 'performance practices' per week. Today, Northern Starz conducts an irregular/inconsistent practice schedule (i.e. different locations and times each week based on availability of low cost options). In an effort to improve and establish their organization in Ramsey, Northern Starz has identified securing a regular/consistent practice facility a priority. The purpose of the proposed lease agreement is to temporarily provide Northern Starz with a regular practice facility in Ramsey; and provide a window of time in which a permanent solution can be secured.
Notification:
NA
Observations/Alternatives:
Old Municipal Center Development:
The proposed lease is located in the "Old Police Building" on the "Old Municipal Center" site. As the Council knows, the City is in the process of rezoning and redeveloping the Old Municipal Center site today. It is anticipated, buildings located on the Old Municipal Center site will be demolished for redevelopment sometime in the next 12-24 months. Both Northern Starz and Staff are aware of this situation. The proposed lease does include a 90 day termination provision.
Summary of Terms:
The proposed lease is located in the "Old Police Building" on the "Old Municipal Center" site. As the Council knows, the City is in the process of rezoning and redeveloping the Old Municipal Center site today. It is anticipated, buildings located on the Old Municipal Center site will be demolished for redevelopment sometime in the next 12-24 months. Both Northern Starz and Staff are aware of this situation. The proposed lease does include a 90 day termination provision.
Summary of Terms:
- USE: Practice facility for children's theater. No official/paid performances allowed. 20-40 children 4-5 times per week. Hours of operation between 8am-10pm. Besides parking, not outside use of property allowed.
- SPACE: 15153 Nowthen Boulevard, building B (Old Police Building), about 1/3 of upstairs.
- TERM: Month-to-month, 3 month termination clause.
- RENT RATE: Only covers City costs, no revenue ($475). Was updated since last review by Council (was $500). Tenant agreed to pay for garbage services independently.
- RENT COVERAGE: Natural gas ($200), electricity ($200), water ($25), finance ($25), maintenance inspections ($25). Change of rent provision included: with 1 month notice, City can increase rent if costs are not being covered.
- TENANT RESPONSIBLE: All regular maintenance. Tenant agrees to complete a specified list of work before occupying the building, will be condition of lease.
- REMOVAL OF WALL: Tenant is proposing removal of wall to create a larger space. Will require written City approval and appropriate permits/inspections. This was reviewed by Building Official and Fire Marshal.
- DEPOSIT: $1,000.
- INSURANCE: General public liability and content.
- TAXES: No taxes will assessed. Property is tax exempt, user is tax exempt, proposed use fits within zoning. This was confirmed with Anoka County.
Funding Source:
NA
Recommendation:
Approve the attached Lease Agreement with Northern Starz Children's Theatre Company.
Action:
Approve the attached Lease Agreement with Northern Starz Children's Theatre Company.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 05/21/2014 09:56 AM |
| Kurt Ulrich | Kurt Ulrich | 05/22/2014 01:26 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 05/19/2014 10:17 AM
- Final Approval Date:
- 05/22/2014