Agenda - Council - 01/23/2024 - Laserfiche WebLink

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5. 19. CC Regular Session Meeting Date: 01/23/2024 Primary Strategic Plan Initiative: Promote economic growth and development. Information Title Adopt Resolution#24-03 8 Approving Youth First Community of Promise Lease Agreement at 6701 Hwy 10 NW 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. Youth First has been a good tenant. The lease has expired on the property and Youth First has asked for it to be renewed for one year with the inclusion of a 90-day early termination notice. This was missed due to the change in the Executive Director position over the holidays. The proposed termination clause for Youth First would be equal to the 90 days that the City has had in the past and would allow them to end the lease earlier in order to move to another facility that would be better for them in the long term. It would also give the City greater flexibility to bring in new tenants if quality tenant opportunities arise. Notification: NA Observations/Alternatives: Attached to this case is the proposed 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(1 year, versus 2)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. Youth First has also communicated that it has begun a search to locate an alternative location when the 6701 Hwy 10 is no longer available or another long-term facility is identified. All rent received by the City for RALF properties is not kept by the City,it is returned to the RALF program,less city administrative and property maintenance costs. Listed below are notable lease terms/changes: (1)Rent rate is $1, essentially zero. Youth First is getting the space at a nominal cost. 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 plowing contract for all of 6701, and have the bill split three ways: God's Kingdom Church, City of Ramsey (Youth First portion), and Mille Lacs Motor Sports II. (3) The term is for one year. The City or Tenant can terminate this lease with a 90-day notice. The time frame to terminate the lease from one year to 90 day for the tenant is a change from the previous lease. In summary, if the City or Tenant decides to get out of the lease early, each party is not obligated to one year. Reasons for early termination of the lease include: if the property were sold back to the private sector, if the property was needed for U.S. Hwy 10 construction, or Youth First finds another suitable long-term solution at another location.