City Council Meeting Date: May 7, 2019
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Consider Resolution Approving Lease of Space by Northfield Hospital & Clinics from Northgate Development Company, LLC for an Orthopedic and ENT Clinic at 1980 30th Street Northwest, Faribault MN.
Body
Action Requested:
The Northfield City Council considers approving the attached Resolution Approving Lease of Space by Northfield Hospital & Clinics from Northgate Development Company, LLC for the Orthopedic and ENT Clinic at 1980 30th Street NW, Suite 200, Faribault, MN.
Summary Report:
The proposed lease is for a 5,610 square foot space for Northfield Hospital and Clinics (NH+C) to relocate the Faribault Clinic currently housing the orthopedic and ENT clinic. In 2019, NH+C began operating the ortho practice and anticipates continued program growth. The lack of space in the Faribault Clinic is limiting efforts for efficient operations and growth of the orthopedic and ENT programs. The current Faribault clinic was never intended to support an orthopedic clinic. To continue to be successful, the practice requires a facility that meets provider and patient needs.
The information provided to the NH+C Board is attached (Attachments 3 & 4). The NH+C Board approved the lease with the information provided in their packet. There will likely be action in the future on the existing building the hospital owns but is not yet determined.
Alternative Options:
None recommended.
Financial Impacts:
Northfield Hospital & Clinics is responsible for lease costs. The terms outlined in the agreement include the following:
Rent.
July 1, 2019 - June 30, 2020 $11.00 per rentable square foot $61,710/Year $5,142.50/Month
July 1, 2020 - June 30, 2021 $11.40 per rentable square foot $63,954/Year$5,329.50/Month
July 1, 2021 - June 30, 2022 $11.80 per rentable square foot $66,198/Year$5,516.50/Month
In addition, operating costs as defined in the lease.
Tentative...
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