Minutes - 2005/08/22 - Laserfiche WebLink

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