City Council Meeting Date: December 2, 2025
To: Mayor and City Council
City Administrator
From: Jayson Dwelle, Facilities Manager
David E. Bennett, Public Works Director/City Engineer
Title
Consider Approval of Lease Agreement with Northfield Senior Citizens Inc. d.b.a. FiftyNorth.
Body
Action Requested:
The City Council is asked to consider approval of the lease agreement for FiftyNorth.
Summary Report:
City Staff took over management of the NCRC January 1, 2022. This new lease clarifies total leased space for the tenant, landlord and tenant responsibilities, and lease rates. 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. The City will continue to evaluate the operations at the NCRC to provide a quality facility for the tenants.
FiftyNorth Lease
The lease for FiftyNorth is a two-year lease for 2026 and 2027. The lease is continuing to phase-in increases to move FifthNorth closer to covering their leased area building operation costs. The phase-in is over three years. The proposed lease is for two-years and the City and FiftyNorth will need to update lease terms at the end of 2027.
The FiftyNorth lease is structured where the City and FiftyNorth split the wellness area operation costs and wellness equipment costs.
The proposed rate increase schedule is listed below
Alternative Options:
Staff recommends approving the new lease.
Financial Impacts:
The proposed rates are what was included in the final budget adoption for 2026.
FiftyNorth Lease Rates
2026 Year 1 Phase in $188,509 ($10.46/SF)
2027 Year 2 Phase in $245,405 ($13.61/SF)
Note: Year 3 - Not Included in Lease: 2028 Year 3 Phase in $311,369 + Capital ($17.27/SF) but will need to be negotiated with FiftyNorth.
The multi-year lease will be for 2026-2027.
Tentative Timelines:
Lease Terms - January 1, 2026 to December 31, 2027
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