Item Description:
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Neg two lease amendments for rental space utilized by the Cedar Riverside Opportunity Center at 515 15th Ave S, Mpls, 01/15/27-01/14/32
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 1 to Lease Agreement A165402 with Five15 Limited Partnership for approximately 4,996 square feet of rental space located at 515 15th Avenue South, Minneapolis for the Cedar Riverside Opportunity Center, extending the contract period through January 14, 2032, in the estimated amount of $150,529 first year rent and operating costs; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the amendment on behalf of the County; and that the Controller be authorized to receive and disburse funds as directed; and
BE IT FURTHER RESOLVED that the County Administrator be authorized to negotiate Amendment 1 to Sublease Agreement A165404 with Emerge Community Development for space within the Cedar Riverside Opportunity Center located at 515 15th Avenue South in Minneapolis, extending the contract period through January 14, 2032, in the estimated receivable amount of $105,370 first year rent and operating costs; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the amendment on behalf of the County; and that the Controller be authorized to receive and disburse funds as directed.
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Background:
Hennepin County leases approximately 4,996 square feet of office space at 515 15th Avenue South, Minneapolis for the Cedar Riverside Opportunity Center (“CROC”) since 2016. CROC is a one-stop shop for education, workforce, and career pathway services operated by Hennepin County and Emerge Community Development. CROC serves approximately 1,500 residents from the Cedar-Riverside community annually. Residents receive a variety of services including employment services, job training/career pathways, support for public benefits applications, and library services.
Hennepin County leases the space from property owner Five15 Limited Partnership through Lease Agreement A165402. Sublease Agreement A165404 with Emerge Community Development (“Emerge”) provides for sublease of the space by Emerge, which is responsible for daily operations, scheduling, and management of the Opportunity Center.
Amendment 1 to Lease Agreement A165402 with Five15 Limited Partnership will extend the lease for an additional five-year term, from January 15, 2027, through January 14, 2032. Base rent will be approximately $7,494 monthly during the extension term. Operating costs are estimated at $5,050 per month for the first year of the extension and are subject to annual adjustments.
Amendment 1 to Sublease Agreement A165404 with Emerge will likewise extend the term of the sublease by five years to match the extended term of the primary lease. Rent for the sublease will remain at the current rate of 70% of the primary lease base rent and operating cost amounts.
Current Request: Authorization to negotiate Amendment 1 to Lease Agreement A165402 with Five15 Limited Partnership and Amendment 1 to Sublease Agreement A165404 with Emerge Community Development for rental space at the Cedar Riverside Opportunity Center, extending the terms of both agreements by five years through January 14, 2032.
Impact/Outcomes: Approval of these lease amendments will allow Hennepin County and Emerge Community Development to continue to provide education, workforce, and career pathway services to area residents at the Cedar Riverside Opportunity Center.
recommendation
Recommendation from County Administrator: Recommend Approval