Agenda - Council - 03/02/2010 - Special

Home

Special CC meeting 3/2/ 10 CASE# 1 CONSIDER OFFER TO LEASE PROPERTY LOCATED AT 7550 SUNWOOD DRIVE NW By: William K. Goodrich, City Attorney Background: The City of Ramsey currently leases the Municipal Center from the Ramsey EDA. Staff has been in negotiations with Anoka County to locate the Ramsey branch of the Anoka County License Bureau to the first floor of the Ramsey Municipal Center. The EDA has consented to the subletting of 7550 Sunwood Drive NW. The attached lease has been agreed to by Anoka County, and is presented to the City Council for its approval. City Council discussed this issue at its February 23, 2010 meeting and tabled it in order to obtain clarification on the Lease Term. Pertinent terms of the lease are highlighted below. Lease Space: 2,200 SF of Office Space and 466 SF of Shared Space. Term: July 1,2010 -June 30, 2015 with one 5 year option to extend exercisable SOLELY in the County's discretion and two 5 year options to extend requiring BOTH City and County approval. PLEASE NOTE the Lease Term identified above is different than the Lease Term identified in the Letter of Intent with the County approved by the City Council in December, 2009. In that Letter of Intent the Lease Term was as follows: The Lease Term shall be five (5) years, with three five-year options to extend. Extension of the lease shall be mutually agreed upon by Tenant or Landlord at end of each five-year period. Subsequent negotiations between the County and staff have resulted in the proposed 10 year lease term with two 5 year mutually agreeable extensions. Rent: $13.00/SF for 2,200 SF of Office Space ($13.00 X 2200 = $28,600) + $5.20/SF for CAM charges both the Office and Shared Space ($5.20 X 2666 = $13,863.20) _ $42,463.20/ year. Taxes: Currently no taxes due on the properly. If taxes become due .on this property at a later date the Tenant will be responsible for its Pro-rata share. Uses: Commercial office space for the Tenant's License Center Facility. Insurance: Anoka County is self-insured and will assume it tenant's liability consistent with the coverage provided to Anoka County facilities. Utilities: covered by CAM Subletting: Subject to consents of City of Ramsey and Interested Parties in the real estate.