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<br />Item No: 7E <br />Meeting Date: May 9, 2011 <br />Type of Business: Council Business <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: James Ericson, City Administrator <br />Item Title/Subject: Resolution 7778 Approving a Lease Extension with Creative <br />Kids Academy Operating at the Mounds View Community <br />Center <br />Introduction: <br /> It was reported to the Council at the April work session that the lease for Creative Kids <br />Academy operating at the Mounds View Community Center would be expiring at the <br />end of July and that a new lease agreement would need to be negotiated. The owner <br />of the childcare facility expressed concern over the City’s desire to pass on to the owner <br />the property tax burden associated with the facility along with the cost of the product <br />associated with the dishwasher. The Council suggested offering a two-year lease <br />extension without requiring the owner to pay for the taxes or use of the dishwasher. <br />The owner agreed to this proposal. <br /> <br />Discussion: <br /> <br />As a result of the direction from the City Council and the consent of the business owner, <br />staff asked Kennedy & Graven to prepare a lease extension agreement document <br />which has been sent to the business owner for his review and signature. (The <br />agreement is attached for the Council’s reference.) There are no changes to the lease <br />agreement with the exception of the expiration date. Thus, all subsequent lease rate <br />increases (scheduled at the first of the year) would continue as they do now. Approving <br />the attached Resolution 7778 will lock the owner into two additional years at the <br />Community Center providing an ongoing revenue stream to the City. <br /> <br />Recommendation: <br /> Staff recommends approval of the attached Resolution 7778, a resolution authorizing <br />an extension of the lease between the City and Creative Kids Academy, a business <br />providing childcare services at the Mounds View Community Center. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />City Administrator <br /> <br />Attachments: <br />1. April 4, 2011 Staff Report <br />2. Resolution 7778 <br />3. Lease Extension Agreement