Item Description:
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Neg Amd 2 to Lease Agmt A189145 with Seward Pharmacy LLC for rental space at 2209 East Lake Street, Minneapolis, extending the contract period to 08/31/29 ($26,804 first year rent)
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Lease Agreement A189145 with Seward Pharmacy LLC for leased space at 2209 East Lake Street, Minneapolis, extending the term from September 1, 2024 through August 31, 2029, in the receivable amount of $26,804 for the first year rent; 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:
Seward Pharmacy LLC has leased 1,422 square feet at the South Minneapolis Human Service Center at 2209 East Lake Street since September 1, 2019 (Resolution 18-HCHRA-0027). The current lease is scheduled to expire on August 31, 2024.
The proposed terms of the Second Amendment will extend the lease five (5) years from September 1, 2024 through August 31, 2029. Rent will be set at $18.85 per square foot ($26,804 annually) for the first year of the extension and increase one percent (1%) annually. This is a gross rent lease which includes base rent and operating expenses but does not include property taxes, utilities, or janitorial expenses which Seward Pharmacy is responsible for paying directly.
Current Request:
The request is to negotiate Amendment 2 to Lease Agreement A189145 with Seward Pharmacy LLC for a five (5) year lease extension through August 31, 2029, in the receivable amount of $26,804 (first year rent).
Impact/Outcomes:
Approval of Amendment 2 to Lease Agreement A189145 will continue to keep the west end of retail space at South Minneapolis Human Service Center occupied and will allow Seward Pharmacy to continue providing the community with a pharmacy.
recommendation
Recommendation from County Administrator: Recommend Approval