Sponsor: Property Management
Title
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Sixth Amendment of Office and Warehouse Space Lease Agreement with State of Minnesota Explore Minnesota Tourism for Leased Space in the Metro Square Building
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Recommendation
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1. Approve the Sixth Amendment to the Lease Agreement with State of Minnesota Explore Minnesota Tourism, 121 7th Place East, Suite 360, Saint Paul, MN 55101, for a reduction of 749 useable square feet of leased space in the Metro Square Building, 121 7th Place East, Saint Paul, MN 55101, for the period of July 11, 2024 through January 31, 2025.
2. Authorize the Chair and Chief Clerk to execute the lease amendment.
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Background and Rationale
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Explore Minnesota Tourism currently leases 9,804 square feet of office space inside the Metro Square building, with a current lease end date of July 31, 2027.
Property Management is completing several important projects at Metro Square that will provide enhanced amenity spaces, perform necessary building repairs, and equip existing and new county tenants from the East Kellogg building with updated workspaces in accordance with the county’s Flexible Workplace Policy and Workplace Standards. These interior renovations are underway on several floors and will be followed thereafter by the relocation of employees to Metro Square.
As part of a larger building system modification and waterproofing project, work needs to be completed on the north side of the Metro Square building. Portions of the building façade will be removed to allow for necessary repairs and enhancements to take place. Inside the building, some temporary walls will be installed to isolate construction zones from office areas. The work inside the building impacts a portion of the space leased by the State of Minnesota for Explore Minnesota Tourism.
Within the space leased to Explore Minnesota Tourism an area of 749 SF will be temporarily unavailable to them. An amendment to provide rent abatement from July 11, 2024 to January October 31, 2025 has been negotiated. The amendment includes the county removing and reinstalling four workstations impacted by the construction area.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The racial equity impact of the lease amendment is unknown.
Community Participation Level and Impact
There is no community engagement for this lease amendment.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
This lease amendment will temporarily decrease monthly rent by $1,330 in 2024 and 2025, prorated in July 2024 for a partial month. The total decrease in projected revenue is $7,533 in 2024 and $1,330 for January 2025. This decrease will have a negligible impact on total revenue for Property Management.
Explore Minnesota Tourism will continue to pay the difference in monthly rent and existing financed tenant improvements per the lease agreement.
Last Previous Action
On October 9, 2020, the Ramsey County Board of Commissioners approved the fifth amendment to the Lease Agreement with State of Minnesota Explore Minnesota Tourism for lease space in the Metro Square Building (Resolution B2020-189).
Attachments
1. Sixth Amendment to Lease Agreement