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CC Regular Session <br />Meeting Date: 06/09/2020 <br />By: Kathy Schmitz, Administrative Services <br />Information <br />Title <br />Approve Anoka County License Center Lease Extension <br />5.5. <br />Purpose/Background: <br />TIn 2010, the City of Ramsey entered into an initial five-year lease agreement with the Anoka County License <br />Center for space in the Ramsey Municipal Center , with three 5-yr renewal option periods. The Anoka County <br />License Center exercised their first option to renew in 2015, and has indicated their desire to exercise the second <br />option this year (2020) extending the lease to 2025. The lease extension requires the City and the County to <br />"mutually agree" to exercise the option. The purpose of this case is to provide the City's approval of the lease <br />extension. With the action recommended in this case, the original agreement would be extended to June 2025. <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 responsible and responsive tenants. As depicted in the <br />attached original agreement, lease rates increase 2% each year per the attached schedule. Staff checked the <br />scheduled lease rates with the City's lease broker; and it was determined they are at market rate. The original <br />agreement requires payment of a "CAM charge" (common area maintenance). This charge is adjusted each year by <br />the City for inflation and passed along to the tenant. The terms were established to allow the City to periodically <br />evaluate whether the space is needed for municipal purposes. The City does not anticipate that this space will be <br />needed for city operations in the next five years. <br />If approved, the annual lease payment that the county will make to the city (including CAM Charges) starting July <br />1, 2020 will be $53,369.90. <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 extend a lease <br />agreement with the Anoka County License Center for use of the Ramsey Municipal Center through June 2025. <br />Attachments <br />Original Lease Agreement <br />Option to Renew <br />