HomeMy WebLinkAbout5L Technology Village Lease Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 28, 2016
AGENDA #: 5L
PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT SPECIALIST
PRESENTED BY: CASEY MCCABE
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION APPROVING THE FIRST AMEND-
MENT TO THE TECHNOLOGY VILLAGE LEASE AGREEMENT BETWEEN THE
CITY OF PRIOR LAKE AND THE CITY OF PRIOR LAKE ECONOMIC DEVEL-
OPMENT AUTHORITY
DISCUSSION: Introduction
The purpose of this agenda item is to Consider approval of a Resolution approving
the First Amendment to the Technology Village Lease Agreement between the City
of Prior Lake and the City of Prior Lake Economic Development Authority.
History
The City of Prior Lake (City) and the City of Prior Lake Economic Development
Authority (EDA) entered a Technology Village Lease Agreement on November 26,
2012 for the EDA to lease approximately 2,000 square feet of office space within
City Hall from the City. The Lease Agreement was for an initial term of December
1, 2012 to November 30, 2015. The lease provided an option to extend for an
additional 3-year term by written notice at least 180 days prior to the expiration of
the initial term.
Current Circumstances
The EDA did not exercise its option to renew the Lease Agreement in writing, how-
ever, the EDA and City have continued to operate under the original lease terms.
The attached lease amendment would amend the Initial Term of the Lease Agree-
ment from December 1, 2012 through November 30, 2015 to December 1, 2012
through November 30, 2018. All other terms and conditions of the Lease Agree-
ment would remain in effect.
Conclusion
Staff supports an extension of this lease through November 30, 2018 per the orig-
inal terms.
ISSUES: The Lease Agreement between the City of Prior Lake and the EDA allows the EDA
to lease space within City Hall from the City of Prior Lake and sublease the space
for the Technology Village program. This arrangement simplifies the Technology
Village participant approval process by allowing the EDA to approve Technology
Village participant lease agreements.
It is the staff’s expectation that the First Stop Shop will lease a small portion of this
space from which they will operate the Scott County-wide Business Accelerator
program. Since they will be officed in this building, we expect numerous benefits
including: 1) greater building lease-out is expected as this facility will be their base
of operations and “showroom”; 2) because the First Stop Shop will be here, tenants
2
will have immediate access to their staff; and 3) the First Stop Shop will be able to
work closer with our staff in siting new businesses in the rest of the Prior Lake
community.
FINANCIAL
IMPACT:
The annual base rent for the EDA to lease the space from the City is $1.00 per
year. The EDA subleases the office space to Technology Village program partici-
pants and the rental revenue received is used for Technology Village Business Ac-
celerator program operations.
ALTERNATIVES: 1. Motion and a second, as part of the Consent Agenda, to approve a Resolution
approving the First Amendment to Lease Agreement between the City of Prior
Lake and the City of Prior Lake Economic Development Authority.
2. Remove this item from the Consent Agenda for additional discussion.
RECOMMENDED
MOTION:
ATTACHMENT:
Alternative #1
1. Technology Village Lease Agreement between the City of Prior Lake and the
City of Prior Lake Economic Development Authority.
2. Lease Amendment
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-XXX
A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE
TECHNOLOGY VILLAGE LEASE AGREEMENT BETWEEN THE CITY OF PRIOR LAKE
AND THE CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY
Motion By: Second By:
WHEREAS, The City of Prior Lake (City) and City of Prior Lake Economic Development Authority
(EDA) entered into a Technology Village Lease Agreement on November 26, 2012
for EDA to lease from City the premises known and designated as Suites C102,
C103, C104, C105, C106, C108 and C111 located at 4646 Dakota Street SE, Prior
Lake, MN 55372; and
WHEREAS, Said Lease Agreement was for an initial term commencing on December 1, 2012
and terminating on November 30, 2015; and
WHEREAS, Said Lease Agreement provides EDA with the right to sublet all or any portion of the
Leased Premises for Technology Village Business Accelerator purposes without
obtaining City’s consent; and
WHEREAS, City and EDA desire to amend the Initial Term of the Lease Agreement to commence
on December 1, 2012 and terminate on November 30, 2018.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to execute the First Amendment to Lease
Agreement amending the Initial Term of the Lease Agreement by and between the City of
Prior Lake and the City of Prior Lake Economic Development Authority to commence on
December 1, 2012 and terminate on November 30, 2018.
PASSED AND ADOPTED THIS 28th DAY OF NOVEMBER, 2016
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
FIRST AMENDMENT TO LEASE AGREEMENT
by and between
CITYOF PRIOR LAKE “Lessor”
and
CITY OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY “Tenant”
WHEREAS, THE PARTIES ABOVE MENTIONED entered into a Lease Agreement on
November 26, 2012 for Tenant to lease from Lessor the premises known and designated as Suites
C102, C103, C104, C105, C106, C108 and C111 located at 4646 Dakota Street SE, Prior Lake,
MN 55372; and
WHEREAS, said Lease Agreement was for an initial term commencing on December 1, 2012
and terminating on November 30, 2015; and
WHEREAS, said Lease Agreement provides Tenant with the right to sublet all or any portion
of the Leased Premises for Technology Village Business Accelerator purposes without obtaining
Lessor’s consent; and
WHEREAS, Lessor and Tenant desire to extend the initial term of the Lease Agreement.
NOW THEREFORE BY THIS AMENDMENT, Lessor and Tenant hereby mutually agree
to amend the Initial Term of the Lease Agreement to commence on December 1, 2012 and
terminate on November 30, 2018.
CONTINUING VALIDITY OF LEASE AGREEMENT, all terms and conditions of the
Lease Agreement, dated November 28, 2012, shall remain in effect.
IN WITNESS WHEREOF, Lessor and Tenant have hereunder affixed their respective seals.
Lessor: City of Prior Lake
By:
Frank Boyles, City Manager Date
By:
Kenneth L. Hedberg, Mayor Date
Tenant: City of Prior Lake Economic Development Authority
By:
Frank Boyles, Executive Director Date
By:
Kenneth L. Hedberg, President Date