Item Description:
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Agmt A2412514 with L&H Partners Owner LLC, and Agmt A2412515 with L&H Partners Owner 2 LLC, for the lease of parking within the South Minneapolis Human Services Center parking ramp at 2215 East Lake St, Mpls, (recv $72,000 first year rent)
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Agreement A2412514 with L&H Partners Owner LLC, or affiliated entity, and Agreement A2412515 with L&H Partners Owner 2 LLC, or affiliated entity, for the lease of parking within the South Minneapolis Human Services Center parking ramp at 2215 East Lake St, Minneapolis, in the estimated combined receivable amount of $72,000 first year rent; that following review and approval by the County Attorney’s Office, the Chair of the Board by authorized to sign the Agreement and related documents on behalf of the county, and the Controller be authorized to receive and disburse funds as directed.
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Background:
The South Minneapolis Human Service Center Building (the “Building”) is a county-owned property located at 2215 East Lake Street, Minneapolis. The Building includes county office space, retail space leased to private business, and a 317-stall underground parking ramp serving the Building and adjacent uses. The Building was a component of a larger redevelopment of the southwest quadrant of East Lake Street and Hiawatha Avenue (the “Redevelopment”) led by the Hennepin County Housing & Redevelopment Authority (“HCHRA”) in partnership with a private developer, L&H Station Development LLC (the “Developer”). The Building was originally owned by the HCHRA but was subsequently transferred to Hennepin County upon completion of the land registration process for the Redevelopment.
The Redevelopment also included the construction by the Developer of two privately owned multifamily housing properties adjacent to the Building, which are commonly known as the “Southsider” and “B-Side” apartments. The Developer, through its affiliated ownership entities for the Southsider and B-Side, leases parking stalls within the Building parking ramp through a parking agreement originally executed by the HCHRA and subsequently inherited by the county as successor in title to the Building. The parking agreement provides for the lease of 75 full-time “reserved” stalls and 100 part-time “off-hours” stalls, or 175 combined stalls for use by Southsider and B-Side apartment residents.
The Developer has advised the county that it intends to sell the B-Side property to a new owner. The Developer has also requested that 50 of the “off-hours” stalls it currently leases be converted to “reserved” stalls, subject to availability. Agreements A2412514 and A2412515 would provide for the termination of the existing parking agreement executed by the HCHRA and Developer and replace it with separate parking agreements for each of the two projects, executed by the county as the current owner of the Building. There would be no change to the total combined number of 175 stalls leased by the Developer. Rent is charged on a per stall basis and is estimated at a combined receivable amount of $72,000 annually for the first year of the Agreements.
Current Request:
This action will authorize the negotiation and execution of Agreement A2412514 with L&H Partners Owner LLC, and Agreement A2412515 with L&H Partners Owner 2 LLC, for the lease of parking within the South Minneapolis Human Services Center parking ramp at 2215 East Lake St, Minneapolis.
Impact/Outcomes:
This action will allow the ongoing use and operation of public and private components of the Lake and Hiawatha Redevelopment, facilitate the sale of the privately owned B-Side apartments, and provide rental revenue for the county.
recommendation
Recommendation from County Administrator: Recommend Approval