Item Description:
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Neg Amd 1 to Lease Agmt A121321 with VEAP, Inc. for rental space at 9600 Aldrich Avenue South, Bloomington, ext end date to 12/31/28 ($348,308 first year rent and operating costs)
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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 A121321 with VEAP, INC., for rental space located at 9600 Aldrich Avenue South, Bloomington, extending the contract period through December 31, 2028, in the amount of $348,308 first year rent and operating costs, with annual adjustments to 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 disburse funds as directed.
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Background:
Since 2013, Hennepin County has leased space at 9600 Aldrich Avenue South, Bloomington, for the Health and Human Services (HHS) South Suburban Hub. The county currently leases 17,613 square feet (sf) under Agreement A121321 which is scheduled to expire on December 23, 2023.
The proposed terms of the First Amendment to Lease Agreement A121321 with VEAP, INC. will extend the lease approximately five (5) years from December 24, 2023 through December 31, 2028, and will reduce the rental size by 267 sf from 17,613 sf to 17,346 sf. The county will retain the right to cancel the lease with no penalty at any time during the five (5) year extension period with 270 days' written notice to the landlord. The base rent will remain the same at the current rate of $13.67 per square foot which will be $237,120 annually for the five (5) year extension term. Operating expenses are estimated to be $6.41 per square foot ($111,188 annually) for the first year and will be adjusted annually to reflect actual costs. Operating expenses include common area maintenance, insurance, and applicable taxes. The county pays directly for janitorial services.
Current Request: Aut...
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