Sponsor: Property Management
Title
title
Fifth Amendment to the Lease Agreement with the State of Minnesota Explore Minnesota Tourism for Metro Square Building.
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Recommendation
recommendation
1. Approve the Fifth Amendment to the Lease Agreement in Metro Square Building, 121 East Seventh Place, Saint Paul, Minnesota, 55101, with the State of Minnesota Explore Minnesota Tourism, 121 East Seventh Place, Saint Paul, Minnesota, 55101, effective October 9, 2020.
2. Authorize the Chair and Chief Clerk to execute the lease amendment.
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Background
background
On October 6, 2009, the County Board approved the purchase of the Metro Square Building (“Building”) and on October 9, 2009, the County closed on the purchase. As part of the purchase, a number of leases with the State of Minnesota for space in the Building were assigned to the County, including Amendment No. 1 to Lease No. 11357 with the State of Minnesota Explore Minnesota Tourism (“Explore Minnesota”) for approximately 8,813 usable square feet of office and 4,344 warehouse space in Metro Square Building (“Lease”).
Since that time, four additional amendments have been approved that have included remodeling the space as well as extending the Lease Agreement through July 31, 2027. This Fifth Amendment seeks to reduce the amount of space rented from 14,148 to 9,804, eliminating the warehouse space, effective October 9, 2020.
After October 9, 2020, the warehouse space will serve storage needs of County departments to avoid the need for leasing off-site storage space.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
There is no known impact on racial equity from this lease amendment or the future use of this space for County purposes.
Community Participation Level and Impact
The information about this action is available through the County Board documentation that is published on the County’s website: <https://www.ramseycounty.us/your-government/leadership/board-commissioners/board-meetings-information>.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The reduction in lease revenue of approximately $62,000 annually may be offset by cost savings realized by the County in reducing its need for leased space elsewhere.
County Manager Comments
County Board approval is required for all real estate transactions.
Last Previous Action
On March 7, 2017, the Ramsey County Board of Commissioners approved the Third Amendment to the of Office and Warehouse Space Lease Agreement with the State of Minnesota Explore Minnesota Tourism for Metro Square Building and delegated authority to approve the Fourth Amendment to the County Manager (Resolution B2017-054).
Attachments
1.Lease Amendment.