City Council Meeting Date: January 21, 2025
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Lease Agreement of 411 Water Street with the Northfield Arts Guild
Body
Action Requested:
The Northfield City Council is recommended to consider a motion to approve a Lease Agreement of 411 Water Street with the Northfield Arts Guild.
Summary Report:
The City of Northfield acquired 411 Water Street in May 2022. The acquisition is part of a larger redevelopment effort of that block, which has been referred to as the “5th & Water Redevelopment Project.” As the City determines the future redevelopment of this site, City staff was directed, in September 2024, to engage local non-profit organizations for potential use of the commercial space on the first floor of 411 Water Street. The Northfield Arts Guild has interest in the space for additional artist space.
City staff, in coordination with City Attorney, has drafted a lease agreement between the City of Northfield and the Northfield Arts Guild. The terms of this agreement are as follows:
• Leased property: 411 Water Street; Commercial space only (ground floor unit) approximately 3,856 square feet (PID is 22.01.1.00.011)
• Lease Term: 2 years starting February 1, 2025 and terminating January 31, 2027
• Lease Amount: No lease cost; security deposit of $3,000 in the event of damages
• Utilities: Tenant must cover all utilities and maintain the space.
• Special conditions: In the event the City enters into a sale agreement of the property there is a termination of this lease, the tenant will be notified to vacate the premises within 30 days.
• Use of space: No structural changes can occur within the unit. However, tenant may sublet spaces and paint walls within the unit.
A memorandum from the Arts Guild is attached detailing the intended use of the building.
Not included in the lease is the upper level. The upper level is not in a usable condition and would require substantial improvements to make it occupiable. Therefore, that area is just being secured at this time.
Alternative Options:
Decline the lease agreement.
Financial Impacts:
In order for the building to remain tax-exempt, the City of Northfield will offer the building to the Arts Guild for $1 per year. However, the Arts Guild will be required to cover all utilities associated with operating in the leased space.
Tentative Timelines:
Lease Agreement begins February 1, 2025.
Lease Agreement ends January 31, 2027.