City Council Meeting Date: October 7, 2025
To: Mayor and City Council
City Administrator
From: Jayson Dwelle, Facilities Manager
Title
Consider Approval of 2026-2028 Lease Agreements with Northfield Community Resource Center (NCRC) Tenants (CAC, HCI, United Way, Workforce Development Inc., and Three Rivers Community Action).
Body
Action Requested:
The City Council is asked to consider approval of the lease rate increases for the following tenants of the Northfield Community Resource Center (NCRC): Community Action Center (CAC), Healthy Community Imitative (HCI), United Way, Workforce Development Inc., and Three Rivers Community Action.
Summary Report:
City Staff took over management of the NCRC on January 1st 2022. The landlord (City) will continue to 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 current leases are for one year and expire December 31, 2025. The new leases will be a multi-year lease that will begin on January 1, 2026 and end on December 31, 2028.
NCRC Tenant Leases
2026 6% Increase
2027 6% Increase
2028 3% Increase + Capital (assumes we don’t get state bonding in 2026, so project in 2027 and their payments begin in 2028)
If the City receives state bonding money for improvements at NCRC, the City will amend the leases for 2028 to adjust the capital cost increases.
FiftyNorth lease agreement is under their review. They requested additional time to review. Staff tentatively scheduled their lease for Council approval on October 21.
Alternative Options:
None recommended.
Financial Impacts:
The revenue was included in past council discussions and will benefit the NCRC Fund.
Tentative Timelines:
Lease Term - January 1, 2026 to December 31, 2028
October 21 - FiftyNorth Lease Contract