Item Description:
title
Neg Amd 2 to Lease Agmt A040146 with RV & PD Investments, LLC, for rental space at 9325 Upland Lane North, Maple Grove, extend end date to 05/31/30 ($302,075 first year rent and operating costs)
end
Resolution:
body
BE IT RESOLVED, that Amendment 2 to Lease Agreement A040146 with RV & PD Investments, LLC for 9,243 square feet of rental space at 9325 Upland Lane North, Maple Grove, extending the contract period from June 1, 2025 to May 31, 2030, in the estimated amount of $302,075 first year rent and operating costs, be approved; that 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.
end
Background:
The Service Centers Department has operated the Maple Grove Service Center in 9,243 square feet of leased space located at 9325 Upland Lane North, Maple Grove since 2005. The current lease term ends on May 31, 2025. Amendment 2 to Lease Agreement A070387 with RV & PD Investments, LLC will extend the lease for five (5) years from June 1, 2025, through May 31, 2030. Amendment 2 will also provide the County with up to thirty thousand dollars ($30,000) of tenant improvement work for renovations performed and paid for by the Landlord. The County will retain the right to cancel the lease with no penalty at any time during the five (5) year extension period with 365 days’ written notice to the landlord.
Base rent will decrease from the current rate of $24.00 per square foot ($221,832 annual) to $19.00 per square foot ($175,617 annual) in the first year of Amendment 2, with annual increases of three percent (3%) thereafter during the five-year renewal period. Operating expenses are estimated to be $13.68 per square foot ($126,458 annual) for the first year and will be adjusted annually to reflect actual costs. Operating expenses include common area maintenance, insurance, utilities, janitorial services, and applicable taxes.
Current Request:
Authorization to negotiate Amendment 2 to Lease Agreement A040146 with RV & PD Investments, LLC for 9,243 square feet of space located at 9325 Upland Lane North, Maple Grove, extending the contract period from June 1, 2025, to May 31, 2030, in the estimate amount of $302,075 first year rent and operating costs is requested.
Impact/Outcomes:
Approval of Amendment 2 to Lease Agreement A040146 will allow the County to continue to provide residents with convenient access to services at the Maple Grove Service Center.
recommendation
Recommendation from County Administrator: Recommend Approval