Sponsor: Property Management & Public Health
Title
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Lease Agreement with MSP/Beam, LLC, for space at 1850 Beam Avenue, Maplewood, MN
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Recommendation
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1. Approve the lease agreement with MSP/Beam, LLC, for 20,900 square feet of space at 1850 Beam Avenue, Maplewood, MN 55109, for a period from lease commencement through 180 months, with one ten-year renewal option at market rate.
2. Authorize the County Manager to account for the 2025 Public Health Clinic project as a project budget in the Property Management budget.
3. Accept and approve the project budget and financing plan for the 2025 Public Health Clinic project in an amount of $1,500,000.
4. Authorize the County Manager to transfer up to $340,000 from the 2015 Public Health Clinical Facility project to the 2025 Public Health Clinic project budget for project activities.
5. Authorize the County Manager to transfer up to $1,160,000 from various county capital fund balances, as determined by the Finance Department and approved by the Capital Investment Program Advisory Committee as necessary, to the 2025 Public Health Clinic project budget for one-time project costs.
6. Authorize the Chair to execute the lease agreement.
7. Authorize the County Manager to execute future amendments to the lease agreement that do not have a financial impact.
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Background and Rationale
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Saint Paul-Ramsey County Public Health’s clinic has been located at 555 Cedar Avenue, St. Paul, Minnesota for over 65 years. Current services to residents include: Refugee Health Coordination, Immunizations, Perinatal Hepatitis B Prevention, Sexual Health, Tuberculosis Control, Public Health Laboratory, Medical Records/Central Registration and Outreach and Syringe Exchange.
The building no longer meets the needs of the clinic and would require extensive upgrades and renovations to continue to provide services in an environment that is aligned with current clinical environment expectations for space and security. The estimated cost is $9 million for deferred maintenance and needed improvements.
Public engagement conducted by Public Health in the past identified the preferred geography for a clinic with access to transit and reasonable parking for clients and staff in locations such as downtown, East Side, north of downtown, or the Midway area. An extensive market search has been conducted by Public Health and Property Management with the goal of identifying existing clinic facilities in or near this preferred geography. Other available clinic facilities considered to date were inadequate. The recent closure of an Allina clinic in Maplewood provides an ideal opportunity to lease a vacant space for Public Health clinic needs.
The 1850 Beam Avenue clinic is located across the street from the Maplewood transit station and Maplewood Mall, where a Ramsey County Service Center is currently located. The transit station will serve the bronze line bus rapid transit in the future. The clinic is near the Ramsey County Library, St. John’s hospital, and leased office space used by Public Health Environmental Health staff. The clinic has ample parking available on-site. In a recent survey, 80% of clinic users indicated they travel by car to the clinic.
The clinic will provide the necessary examination rooms, laboratory, radiology and space for staff. Improvements will be needed to create the negative air exam rooms and laboratory space required for tuberculosis control care. The outreach and syringe exchange program operated by Public Health is not included in the transition to this Maplewood location and is intended to stay downtown, although a location has not yet been determined.
Property Management recommends approval of a lease agreement for 180 months. The proposed terms include a fifteen-year initial lease with one ten-year renewal option and an early termination option that can be exercised annually after the twelfth year.
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County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Annually, approximately 22,000 clinical service visits are provided to residents of Ramsey County and the surrounding metro county region. Over 67% of clients are from racially and ethnically diverse communities, with the majority of these being Black/African American and Asian. Essential public health services such as tuberculosis control, childhood and adult immunizations, reproductive and sexual health services, syringe services, and public health lab services are offered at this location. Many of the clients are challenged to meet basic needs such as food, clothing and shelter. Providing services to clients in a respectful environment that allows efficient access to complementary supportive services will help improve the health and well-being of our residents. Staff that work in these programs are also racially and ethnically diverse. The move to the new location will create an environment staff can feel safe and proud to provide services in and clients will feel respected by an environment that aligns with current clinical care standards related to space and privacy.
Community Participation Level and Impact
Public Health has previously engaged the community related to their services, the location for a clinic, and client modes of transportation.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The lease includes a 180-month term with initial base rent of $459,800/year and annual increases of 3%. Operating expenses and taxes payable to the landlord are estimated at $345,060/year. Rent and operating expenses for this lease will be absorbed within the Public Health operating budget. The one-time costs for the project are estimated at $1,500,000 and will be funded by $1,160,000 from one-time county capital funds and year end funds in the 2015 Public Health Clinical Facility project estimated at $340,000. The 2025 Public Health Clinic project funds will also be available for maintenance projects as required at the existing 555 Cedar building pending disposition.
Last Previous Action
None.
Attachments
1. Lease Agreement
2. Project Budget and Financing Plan