Item Description:
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Neg Lease Agmt LS00000045 with Simpson Properties, LLC for family safe space at 128 W 33rd St, Mpls, 01/01/26-12/31/30, $200,000 first year base rent, plus ordinary operating costs
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Lease Agreement LS00000045 with Simpson Properties, LLC for rental of 18,150 square feet of space located at 128 West 33rd Street in Minneapolis, during the period of approximately January 1, 2026, through December 30, 2030, in the amount of $200,000 first year base rent plus ordinary operating costs; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the Agreement on behalf of the County; and that the Controller be authorized to accept and disburse funds as directed.
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Background:
Simpson Properties, LLC, an affiliated entity of Simpson Housing Services (“Simpson”) owns an existing 18,150 square foot building at 128 West 33rd Street, Minneapolis (“Building”). Simpson previously used the Building as an emergency shelter for single adults. Simpson’s shelter will move to a new location in early 2026. Hennepin County Health and Human Services (“County”) proposes to lease the Building upon vacation by Simpson for use as a safe space for families with children experiencing homelessness who have nowhere else to stay (“Family Safe Space”). The Family Safe Space provides triage space, resource connection, and emergency accommodations for families who have no place to stay and can’t immediately access shelter. Simpson will charge the County first year annual base rent of $200,000, with 3% annual escalations. The County will be responsible for Building operating costs and for any tenant improvements.
Hennepin County has had a shelter-all policy for families with children since 2005, but recently that practice has been severely tested. Levels of family homelessness began increasing steeply following the end of pandemic-related federal rent assistance and the eviction moratorium in 2022. Hennepin County remains committed to sheltering families and making homelessness rare, brief, and nonrecurring. Through the lease of the Building, Hennepin County can ensure that an option can be made available for families with children to receive emergency accommodation and service connection.
Current Request:
Authorization to negotiate Agreement LS00000045 with Simpson Properties, LLC for rental space at 128 West 33rd Street, Minneapolis during the period January 1, 2026, through December 30, 2030, with the not-to-exceed amount of $200,000 first year base rent plus operating costs is requested.
Impact/Outcomes:
Approval of Lease Agreement LS00000045 will allow the County to provide emergency safe space for families experiencing homelessness, ensuring no child sleeps outdoors in Hennepin County.
recommendation
Recommendation from County Administrator: Recommend Approval