Agenda Packets - 2005/09/26 - Laserfiche WebLink

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Mounds View City Council August 22, 2005 Regular Meeting Page 32 1 Mr. Alsop stated this deals with issues that must be discussed confidentially to protect the rights 2 of the City and it also deals with past acts of the Council and the City’s liability based on those 3 past acts. 4 5 City Attorney Riggs suggested Consent Agenda 9.F.1. tem be pulled for a separate action. 6 7 K. Resolution 6605 Adopting an Amended Contract with Canyon Grille for the 8 Lease of Space at the Mounds View Community Center 9 10 City Administrator Ulrich explained that with the proposed remodeling project at City Hall it is 11 recommended that the City administrative staff, with the exception of the Police Department that 12 will relocate to the Ramsey County Sheriff’s facility in Arden Hills, be relocated to the Mounds 13 View Community Center, utilizing space currently occupied by the YMCA and Canyon Grille. 14 The YMCA contracts with the City to provide recreational services. The Canyon Grille leases 15 space from the City comprising of the event center, former community school classrooms, offices 16 and common area. 17 18 City Administrator Ulrich advised that the total amount of space required for City operations at 19 the Community Center is about 4,700 square feet, including common space. Of the total, about 20 72% is space currently leased to Canyon Grille. The City would need to lease the space back 21 from Canyon Grille at a rate to be determined. 22 23 City Administrator Ulrich stated since Canyon Grille is paying rent, it would be in the form of a 24 lease concession. Canyon Grille agreed to pay the contract amount for July and August in the 25 amount of $5,000. He explained that it went from $3,000 the first part of the year to $5,000 on 26 July 1, 2005. The proposal is for the City to give a lease concession of the entire $5,000 amount. 27 That would equal about $12 per square foot. Other space staff inquired about at local shopping 28 centers and the educational building across the road, were quoted at $14.50 per square foot plus 29 utilities. He explained that the advantage of using the Community Center is that the City is 30 already paying the utility costs and the building is wired for computer use with the exception of a 31 T-1 high speed line. 32 33 City Administrator Ulrich noted he had provided the Council with the financials for Canyon 34 Grille and letter outlining their rental rates. He reviewed the rate schedule for the ballroom of 35 $22,969 for seven months plus $3,000 per month for the office space or a total of $43,000 for 36 seven months. At $5,000 per month, it would equal $35,000 over that period of time. The 37 $35,000 cost could be taken from the special projects funds, which is part of the City Hall 38 remodeling expenses. 39 40 City Administrator Ulrich recommended the Council accept this proposal. He stated it may seem 41 high to some Councilmembers but Canyon Grille is looking for some business assistance and this 42 may be the beginning of looking at that contract since this model may not work for the City in 43 the long term. He explained that Canyon Grille needs additional time to get their business on its 44 feet and if they don’t get that additional time to do so, and may cancel the contract. 45