City Council Meeting Date: January 7th, 2025
To: Mayor and City Council
City Administrator
From: Jayson Dwelle, Facilities Manager
Title
Consider Approval of Lease Agreements with Healthy Community Initiative (HCI), Community Action Center (CAC), Three Rivers Community Action, Rice County United Way, and Workforce Development, Inc. (WDI).
Body
Action Requested:
The City Council is asked to consider approval of the 2025 lease agreement for HCI, CAC, Three Rivers Community Action, Rice County United Way, and WDI for use of the defined spaces in the Northfield Community Resource Center (NCRC).
Summary Report:
City Staff took over management of the NCRC January 1, 2022. Staff reviewed the existing lease and determined that the lease needed to be increased to cover operational expenditures at the NCRC. The new one-year leases clarify total leased space for each tenant, landlord and tenant responsibilities, and lease rates.
The City will continue to evaluate the operations at the NCRC to provide a quality facility for the tenants. Due to the increasing cost of goods and services, along with several planned and emergency repairs, it was necessary to increase the lease rates from the 2024 rates to cover operating expenses. The new lease rates cover the operating expenses for the facility and bring a common lease rate to most of the tenants. The exceptions are Rice County who is in the middle of a 10-year lease agreement and the Wellness Center portion of FiftyNorth.
The landlord (City) will be responsible for the upkeep of all common spaces, capital expenses i.e. roofing, HVAC, plumbing system, electrical system, phone system and all other building wide systems. It is anticipated in a future lease, that proposed capital expenses will be added to future lease rates. Any capital improvement specific to FiftyNorth, will be funded per the agreement between FifityNorth and the City and other tenants will not have to bear those costs.
FiftyNorth Lease will b...
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