Item Description:
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Neg Amd 4 to Lease Agmt A2110797 with American Indian Community Development Corporation for rental space at 1800 Chicago Avenue in Mpls, ext end date to 12/31/26 with no change to contract amt
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 4 to Lease Agreement A2110797 with American Indian Community Development Corporation for leased space at 1800 Chicago Avenue, Minneapolis, expanding the rental space from approximately 755 square feet to 18,450 square feet, and extending the lease through December 31, 2026 with no change to the estimated receivable amount of $234,869 for first year rent and operating expenses; 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 accept and disburse funds as directed.
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Background:
The American Indian Community Development Corporation (AICDC) has been the county service provider for withdrawal management/detoxification services at 1800 Chicago since 2002. AICDC currently leases 17,695 square feet at 1800 Chicago in which it operates 65 beds through Lease Agreement A2110797. The current lease is scheduled to expire on December 31, 2024. Services provided by AICDC are funded in part by a county Human Services contract.
The Fourth Amendment to Lease Agreement A2110797 will extend the lease term by two (2) years from January 1, 2025, through December 31, 2026. The Fourth Amendment will also increase the size of the leased space by approximately 755 square feet, from the current size of 17,695 square feet to the new size of 18,450 square feet. The additional ~755 square feet will be for administrative offices and will not increase the number of beds. The rent structure will remain unchanged with AICDC paying its pro-rata share of operating expenses, which are estimated at $234,869 for the first year. In addition, AICDC may pay up to $147,600 ($8.00 per square foot) annual Base Rent as determined at the end of each calendar year should funding received from the State of Minnesota exceed AICDC’s actual operating expenses for the withdrawal management services. Both the County and AICDC will continue to have the right to cancel the lease by providing written notice at least one hundred twenty (120) days prior to the effective date of cancellation.
Current Request:
Authorization to negotiate Amendment 4 to Lease Agreement A2110797 with American Indian Community Development Corporation to extend the lease two (2) years through December 31, 2026, in the estimated receivable amount of $234,869 for the first year is requested.
Impact/Outcomes:
Approval of Amendment 4 to Lease Agreement A2110797 will allow AICDC to continue to provide withdrawal/detoxification services at 1800 Chicago Avenue.
recommendation
Recommendation from County Administrator: Recommend Approval