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■ Demise office space: There is a potential need to demise the space into two separate office spaces. The cost to perform this work is estimated at $7,000 - $9,000. Youth First and City staff are continuing to work on options for this need. ■ Foregoing lease revenue and taxes to the City: Staff recognizes that with this arrangement, the City would be foregoing any lease revenue and property taxes that might have been collected from the lease of the space. The lease revenue, minus the administrative expenses, would be returned to the Met Council RALF program. Staff met with the EDA on November 30, 2006, and the EDA expressed support for the use of the space for this purpose. During the work session of December 4, Council concurred with that support. The potential total annual tax revenue that will be lost is estimated at $8,900 (city portion$2,500). Assistant City Administrator Nelson indicated the Ramsey Rotarians have been providing volunteers to assist with the program in the afternoons and intend to continue this once the program is re-established in the new space. The Ramsey Lions have also provided financial support to the Youth First program in general; these funds have been utilized to pay for staff time and operational expenses for the Oak Terrace program. Heidi Geiss from Youth First will be meeting with the Ramsey Lions on December 13, 2006, to update them on the status of the program and the need for continued support. Ms. Nelson advised staff is recommending the space be committed to Youth First through the end of August 2006, at which time the use of the space will need to be re-evaluated. The use through the end of August 2006 allows for programming through the end of the 2007-2007 school year and summer 2007, with an opportunity to assess prior to the 2007-2008 school year. Ms. Heidi Geiss, Youth First, stated Youth First is excited to be able to do concrete after-school programming. There are a lot of concrete partners they want to bring in with this great space, including the School District and the YMCA. There will be a computer lab with extra tutoring for bilingual kids. Mayor Gamec asked if the computer lab will be in partnership with the School District, Ms. Geiss replied yes, the School District would like to write Youth First in for a grant for the next school year. Councilmember Elvig stated this is a wonderful opportunity. With the RALF funds and purchase of properties on Highway 10 this is a unique situation for the City to be able to extend this opportunity to Youth First. Motion by Councilmember Elvig, seconded by Councilmember Cook, to adopt Resolution #06- 12-3 82 authorizing the use of the southeast office space at the former NAU site for Youth First programming through the end of August 2007. Further discussion: City Attorney Goodrich advised he recommends this agreement be in the form of a lease. Mayor Gamec stated this will be a definite benefit for the youth in the area. City Council/December 12, 2006 Page 21 of 29