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CC Regular Session <br />Meeting Date: 03/24/2015 <br />Submitted For: Patrick Brama, Administrative Services <br />By: Patrick Brama, Administrative Services <br />4. 3. <br />Information <br />Title <br />Approve Anoka County License Center Lease Extension <br />Purpose/Background: <br />The City of Ramsey entered into a five-year lease agreement with the Anoka County License Center for space in <br />the Ramsey Municipal Center in 2010. This original agreement is set to expire in June 2015; and, has three renewal <br />option periods in which to extend the agreement by an additional five years. Anoka County License Center has <br />exercised their first option to renew. Said option requires the City to "mutually agree." The purpose of this case is to <br />provide said approval ("mutual agreement"). With the action suggested in this case, the original agreement would be <br />extended to June 2020. <br />Notification: <br />NA <br />Observations/Alternatives: <br />It is Staff's opinion—that, Anoka County has been a good tenant/steward of the Ramsey Municipal Center, they <br />have consistently paid their rent on time, and have been easy to work with. As depicted in the attached original <br />agreement, lease rates are scheduled to increase each year. Staff checked the scheduled lease rates with the City's <br />lease broker; and it was determined they are at market rate. The original agreement requires payment of a "CAM <br />charge" (common area maintenance). This charge was to be adjusted for inflation each year. This work has been <br />executed each year --with no objections from the tenant. The terms are set in order to allow the City to evaluate <br />whether the space is needed for municipal purposes. It is not anticipated that this space will be needed in the next <br />five years. <br />Funding Source: <br />NA <br />Recommendation: <br />Staff recommends this agreement be extended for another five years. See attached for details. <br />Action: <br />Motion to: <br />authorize the City Administrator to execute the attached document; which, provides consent to extending a lease <br />agreement with the Anoka County License Center for use of the Ramsey Municipal Center through June 2020. <br />Original Lease Agreement <br />Option to Renew <br />Attachments <br />