03-11-13 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 6A STAFF ORIG INATOR: Mary Alice Divine MEETING DATE: March 11, 2013 TOPIC: Consideration of Resolution No. 13 -25 Approving a Civic Complex Lease Agreement VOTE REQUIRED: 3/5 IN TRODUCTION In February 2012 a commercial broker was hired to market the former ECFE of the Lino Lakes Civic Complex for lease. A new, private, not -for -profit school is interested in leasing the facility. Staff has been working with the broker to complete a Lease Agreement for City Council consideration. Parties have come to a general agreement and the City’s bond counsel has reviewed the lease. BACKGROUND Veritas Academy would like to lease 9,635 square feet of the 9,938 square feet of the facility on a 5 -year term. The facility will be used for elementary education. The remaining square footage is located adjacent to the community room and will be withheld by the C ity for future expansion of the community room . In addition, the academy has agreed to tempor arily provide the City with two of the rooms in the facility for evening parks and recreation programming if needed, until enrollment increases to the point where they will be needed as classrooms. No interior remodeling of the facility will be required fo r their purposes. The lease arrangement is as follows: Base Rent . Months Net Rent PSF SF Per Period Net Rent Monthly Net Rent 1 to 6 $2.50 9,635 $12,043.75 $2,007.29 7 to 12 $4.50 9,635 $21,678.75 $3,613.13 13 to 24 $7 .00 9,635 $67,445.00 $5,620.42 25 to 36 $7.50 9,635 $72,262.50 $6,021.88 37 to 48 $7.75 9,635 $74,671.25 $6,222.60 49 to 60 $8.00 9,635 $77,080.00 $6,423.33 In addition to the base rent the lease agreement calls for the tenant to pay a proportionate share of operational costs, including annual maintenance, utilities and insurance. The lease will be effective July 1, 2012 through June 30, 2018. The academy will supply a $5,000 security deposit on M ay 1. They are asking for council approval so that they can have assurance to begin marketing the location to their prospective clientele. Broker commission is $16,259.