Agenda Packets - 2013/07/22 - Laserfiche WebLink

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Item No: 7J MOUNDS � T7 Meeting Date: July 22, 2013 �/1 Type of Business: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Resolution 8125 Approving a Lease Extension with Creative Kids Academy Operating at the Mounds View Community Center Introduction: Creative Kids Academy leases space at the Mounds View Community Center. In 2011, their lease was extended two years through July 31, 2013. The owner of the facility has agreed to a five-year extension under the same terms (which includes annual rent inflators.) If approved, the new lease would go into effect on August 1, 2013 and run through July 31, 2018. Discussion: When the current lease extension was negotiated in 2011, two issues were discussed for additional consideration—property taxes and costs associated with the use of the dishwasher. The owner of the facility—Rajiv Garg—was not supportive of paying the property taxes or paying for any of the dishwasher chemicals. While Mr. Garg maintains his opposition to increasing the rent to cover the property taxes, he is agreeable to share the costs of the dishwasher in recognition of the shared use of the appliance. The attached extension agreement was originally drafted by Kennedy & Graven. The only changes are to the dates as well as the inclusion of the tenant's requirement to cover 50% of the costs of the dishwasher materials. Recommendation: Staff recommends approval of the attached Resolution 8125, a resolution authorizing an extension of the lease between the City and Creative Kids Academy, a business providing childcare services at the Mounds View Community Center. Respectfully submitted, James Ericson City Administrator Attachments: 1. Letter frorn Rajiv Garg, dated June 11, 2013 2. Resolution 8125 3. Lease Extension Agreement