HomeMy WebLinkAbout#12 Brookfield Lease AmendmentSTAFF REPORT
DATE: March 7, 2017
CONSENT
ITEM #: 12
AGENDA ITEM: Brookfield Lease Amendment
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
In September 2014, the City entered into a lease agreement for the office space in the Brookfield building
where the administration and finance departments are located. A copy of that lease is attached for reference.
ISSUE BEFORE COUNCIL:
Should the Brookfield lease be amended?
PROPOSAL:
A copy of the proposed lease amendment is included in your packet. It deletes the Right of First Refusal
and in exchange extends the lease by one year with no increase in the rate and allows for the option of an
additional year extension at a 2% increase.
A lease extension is beneficial for the city in that the city hall facility needs will likely not be addressed by
September 30, 2019. The one to two year extension will provide the city with adequate time to research
and evaluate the options presented in the space needs study and construct the needed space. An RFP for a
space needs study is out at this time and it is anticipated the final report will not be completed until late
summer 2017.
FISCAL IMPACT:
The annual lease amount in the fifth year of the current contract is $33,223. That same amount would be
extended for year six. If the City exercises the option for the seventh year, the annual rent amount would
be $33,887.46.
OPTIONS:
1) Approve the lease amendment
2) Do not approve the lease amendment
RECOMMENDATION:
If removed from the consent agenda:
“Motion to adopt the amendment of the Brookfield Lease.”
ATTACHMENTS:
• Current Brookfield Lease
• Proposed Amendment to Lease
495638v1 SJS LA515-1
1
FIRST AMENDMENT TO LEASE AGREEMENT
This First Amendment to Lease Agreement (“Amendment”) is made this ____ day of ____, 2017, by and
between Lake Elmo Associates, L.L.P., a Minnesota limited liability partnership (“Landlord”) and the City of Lake
Elmo, a Minnesota municipal corporation (“Tenant”).
WHEREAS, Landlord and Tenant entered into that certain Lease Agreement dated as of September 2, 2014
(the “Lease”) providing for the rental by Tenant of 2461 square feet of office space on the first floor of the southwest
corner of a building owned by Landlord located at: 3880 Laverne Avenue North, Lake Elmo, Minnesota, legally
described as follows:
Lot 1, Block 2, Brookman Addition, County of Washington, State of Minnesota.
(the “Premises”); and
WHEREAS, Landlord and Tenant wish to amend the Lease as follows; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the
Landlord and the Tenant hereby agree as follows:
1. Amendment to the Third Recital of the Lease. The Third Recital of the Lease is amended as
follows:
TO HAVE AND TO HOLD the Premises for a term of six years, beginning October 1, 2014 and
continuing to and including the 30th day of September, 2020, on the following terms and
conditions:
2. Amendment to the Third Paragraph of Paragraph 1 of the Lease. The third paragraph of
Paragraph 1 of the Lease is amended as follows:
Tenant shall pay to Landlord, rent for the fifth and sixth years in the sum of $33,223.00
per year; said rent shall be paid in equal monthly installments of $2,769.00 each, to be
paid on the first day of each month.
3. Amendment to Paragraph 18 of the Lease. Paragraph 18 of the Lease is amended as
follows:
18. Renewal. Tenant shall have the option to renew this Lease for an additional one
year term (commencing on October 1, 2020 and ending on September 30, 2021).
Tenant shall give Landlord 180 days’ notice prior to the expiration of the term of
this Lease that it intends to renew the Lease for the additional one year term. If
Tenant exercises its option to renew the Lease, all terms of this Lease shall
remain the same unless otherwise agreed to in writing by Tenant and Landlord,
with the exception that the parties agree that the rent for the renewal term shall
increase two percent to $33,887.46 per year; and rent shall be paid in equal
monthly installments of $2,823.96, to be paid on the first day of each month.
4. Amendment to Paragraph 19 of the Lease. Item (c) of Paragraph 19 of the Lease is
removed in its entirety.
495638v1 SJS LA515-1
2
5. Miscellaneous. Except as specifically provided herein, the terms and conditions of the
Lease are confirmed and continue in full force and effect.
IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment to Lease Agreement as of the date
written above.
Landlord
LAKE ELMO ASSOCIATES,L.L.P.
Tenant CITY OF LAKE ELMO
By: _________________________________ By: _________________________________
Mike Pearson
Its: _________________________________ Its: Mayor
By: ________________________________
Julie Johnson
Its: City Clerk