Item Description:
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Consent to and Assignment of Lease granting 500NNL, LLC permission to assign Lease Agmt A2311993 to Tailwind 687 Excelsior, LLC for rental of HCRRA property in Excelsior; Amd 1 to Lease Agmt 2311993 with Tailwind 687 Excelsior, LLC (recv $8,649)
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Resolution:
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BE IT RESOLVED, that the Consent to and Assignment of Lease granting 500NNL, LLC permission to assign Lease Agreement A2311993 to Tailwind 687 Excelsior, LLC for rental of Hennepin County Regional Railroad Authority property in the City of Excelsior, be approved; and that the Chair of the Board be authorized to sign the agreement on behalf of the Authority; and
BE IT FURTHER RESOLVED, that Amendment 1 to Lease Agreement A2311993 with Tailwind 687 Excelsior, LLC for rental of Hennepin County Regional Rail Authority property in the City of Excelsior, increasing the leased premises from 7,184 square feet to 7,800 square feet, in the receivable amount of $8,649 per year, be approved; and that the Controller be authorized to accept and disburse funds as directed.
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Background:
HCRRA has leased a 7,800 square foot portion of the Hopkins to Victoria corridor to the property owner at 687 Excelsior Boulevard in Excelsior since 2003. From 2003 to 2017, the property was leased to the Bayview Event Center for a small building encroachment and alley access. The lease was assigned to 500NNL, LLC in 2017 when Bayview sold the property to be used as office space (Resolution 17-HCRRA-0030). HCRRA entered into Agreement A2311993 with 500NNL, LLC from January 1, 2024 through December 31, 2028, in the receivable amount of $7,966 for the first three years, with a rate adjustment in the fourth year (Resolution 23-HCRRA-0035). 500NNL, LLC recently sold the property to Tailwind 687 Excelsior, LLC and wishes to assign the lease to the new owner.
Examination of the lease for assignment purposes found a discrepancy in the description of the leased premises between the lease document and lease exhibit. Amendment 1 to Lease Agreement 2311993 will revise the leased premises in the lease document to match the exhibit and increase the annual rent from to $7,966 to $8,649.
Consistent with HCRRA’s Land Use Management Plan, Section IV, Subsection C - Use of Property, the proposed Consent to and Assignment of Lease grants 500NNL, LLC permission to assign Lease Agreement A2311993 to Tailwind 687 Excelsior, LLC for rental of HCRRA property in Excelsior and permits Tailwind 687 Excelsior, LLC to accept the assignment. Either party may terminate the lease by giving a 90-day written notice. Amendment 1 to Lease Agreement 2311993 will revise the leased premises and increase the rent accordingly.
Current Request:
This request will approve the Consent to and Assignment of Lease permitting 500NNL, LLC to assign HCRRA Lease Agreement A2311993 to Tailwind 687 Excelsior, LLC for rental of HCRRA property in Excelsior, and Amendment 1 to Lease Agreement A2311993 with Tailwind 687 Excelsior, LLC revising the leased premises and increasing the annual lease rent.
Impact/Outcome:
Approval of this request allows for the assignment of HCRRA Lease Agreement A2311993 to Tailwind 687 Excelsior, LLC and approves Amendment 1 to Lease Agreement 2311993.
recommendation
Recommendation from County Administrator: Recommend Approval