Agenda - Council - 12/14/2021 - Laserfiche WebLink

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CC Regular Session 7. 1. a. Meeting Date: 12/14/2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Information Title Adopt Resolution#21-352 Approving Youth First Community of Promise Lease Agreement-Please Note: Council moved this case from 7.6 to 7.1.a Purpose/Background: Youth First Community of Promise currently leases 4,820 square feet of office space from the City of Ramsey located at 6701 Highway 10 and the Adjacent lot for a nominal rent of$1 per year(essentially for free). The City provides this lease,with favorable terms,to Youth First intentionally--to support their mission and work. Notification: N/A Observations/Alternatives: Attached to this case is the Lease Agreement for the 4,820 square feet of office space from the City of Ramsey located at 6701 Highway 10 and use of the adjacent parcel(the "Vacant Lot")to the west for gardening and recreational activities relating to the company's mission. The proposed term of this lease is considerable shorter(2 years versus 5) due to the pending Hwy 10 improvements and the likelihood that the City will attempt to sell RALF properties once the process has been determined. Listed below are notable lease terms/changes: (1)Rent rate is $1, essentially zero. Youth First is getting the space for free. This term is the same in both the new and current lease agreement. (2)Youth First pays a proportional share of 30%of utilities--except snow removal. The City covers the cost of snow removal. SIDEBAR: The City currently has a snow snow plowing contract for all of 6701, and have the bill split three ways:Potters House Church, City of Ramsey (Youth First portion), and Mille Lacs Motor Sports II. (3)The term is two years. The City can terminate this lease with a 90-day notice. In summary, if the City decides to get out of the lease early, the City is not obligated to all two years. The logical circumstance here is--if the property were sold back to the private sector, or if the property was needed for U.S. 10. (5)Tenant is required to carry a general public liability insurance policy(minimum$2M policy). City carries our standard Hazard Insurance--which is what we do on all leased properties. Funding Source: NA Recommendation: This lease agreement was reviewed by the City Attorney and Staff recommends approval as presented. Action: