Agenda - Council - 08/25/2015 - Laserfiche WebLink

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Our Mistionc To work together to reipoiibly grew our comma nityr, and to provide quality, cert-oliBcdwe, and efficient government services. CC Regular Session Meeting Date: 08/25/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 7. 10. Information Title: Provide Staff Direction Related to Northern Starz Children's Theatre Lease Purpose/Background: PURPOSE Provide Council with an update to an urgent situation. Identify a solution moving forward. UPDATE The geothermal heating and air conditioning system, which provides service to the City's former Police Department building, was accidently destroyed on August 20 by GS Land. It was destroyed during construction of public improvements on the property recently sold by the City to GS Land. Northern Starz Children's Theatre currently leases the City's former Police Department building. Why is GS Land not responsible for this situation? Although GS Land did not intentionally damage the geothermal system, it is partially physically located on their property. Therefore, claiming this issue is solely their financial responsibility would be challenging; as they may potentially have an ownership claim. Why was this not covered by staff as part of construction planning? The City has no record (map) of the geothermal system. This is the only City building that utilizes geothermal. As a result, Staff is not experienced with geothermal systems; and did not anticipate this potential issue. Due to the expected demolition of municipal center campus this spring, extensive investigation of the geothermal system was never conducted. Additionally, when the City originally negotiated a purchase agreement with GS Land, final clarity in several overlapping timelines related to the larger redevelopment project did not exist. NORTHERN STARZ LEASE AGREEMENT The City of Ramsey entered into a lease agreement with Northern Starz Children's Theatre in July of 2014. Northern Starz Children's Theatre uses said space as a practice facility. The current lease agreement includes a rate that is well below market. The intention of this lease agreement was to help Northern Starz "get on their feet" and become established in the Ramsey community. To date, Northern Starz has seen significant growth and support for their organization; and they hope to see that trend to continue moving forward! With the anticipated demolition and cleanup of the former municipal center campus expected to take place in April of 2016, Staff notified Northern Starz the original lease agreement was to terminate in mid-March, 2016. Northern Starz has since made arrangements for a new home. They have secured a lease to utilize the former Allina building; officially beginning on February 1, 2016.