Item Description:
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Neg Amd 5 to Agmt A16491 with the City of Wayzata for rental of space utilized by the Hennepin County Library, ext end date to 04/30/38 ($120,633 first year gross rent)
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 5 to Lease Agreement A16491 with the City of Wayzata for 9,665 square feet of rental of space utilized by the Hennepin County Library at 600 Rice Street, Wayzata, extending the contract period to April 30, 2038, in the estimated amount of $120,633 first year gross 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 disburse funds as directed.
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Background:
The Hennepin County Library has operated the Wayzata Library since 1975. The county currently leases 9,665 square feet of space in a building owned by the City of Wayzata ("City") at 600 Rice Street, Wayzata ("Building") for the library facility through Lease Agreement A16491 ("Lease"). The current Lease term expires on April 30, 2028. Several substantial capital improvements are planned for the Building in the coming years, including replacement of windows and HVAC systems among other improvements. These capital improvements will directly benefit the county's leased space and are estimated to cost approximately $846,500.
The proposed terms of Amendment 5 to the Lease will extend the term through April 30, 2038, and provide for the county and City to share the cost of the planned capital improvements to the Building on a 50/50 basis. The county contribution will be amortized and added to base rent over a ten-year period, after which rent will return to the prior base rent rate escalated at 3% annually. The first-year rent including amortized capital improvement contributions is estimated at $120,633. Rent in the eleventh year, after county contributions to the capi...
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