HomeMy WebLinkAbout10B - Dance Space Lease at Priordale Mall
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA NUMBER:
PREPARED BY:
AGENDA ITEM:
JULY 6,1998
lOB
CHRIS ESSER, RECREATION SUPERVISOR
CONSIDER APPROVAL OF ONE YEAR LEASE
EXTENSION OF DANCE STUDIO SPACE AT
PRIORDALE MALL
DISCUSSION:
History
The City of Prior Lake is currently leasing space at Priordale
Mall for the Parks and Recreation Department's Dance
Program. Our current three year lease expires in August of
this year. To continue at Priordale Mall for the 1998-99
season, a lease extension needs to be initiated. With
registration approaching, staff needs to establish the facility
for the upcoming season.
Current Circumstances
When the current three year lease was signed in 1995 for use
of the Priordale Mall space, research was conducted into
other possible sites to house the program. The most common
problem with other sites, such as church community rooms
and school gyms, is the time commitment needed for this
program. The dance program currently operates from 2:30
p.m. to 9:30 p.m. six nights a week. This is the same block
of time that church, community, and school groups use their
respective space for their own activities.
The current site at Priordale Mall, although it is not ideal, has
met the basic needs of the program over the past seven years
by providing the necessary space, restroom facilities, secured
storage, and a separate entrance. This site can still meet the
needs of the program for the additional season needed before
completion the new Library/Resource Center.
Issues
The 1997-98 Dance Program had over 300 participants who
took weekly classes from September through May. The
162~~~~t9~~ Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
program is very popular and the amount of participants is
expected to rise in the coming years.
With the construction of the new LibrarylResource Center,
leasing will not be an issue in the future. Until construction
is complete, the City needs to rent space for this program.
The only economically reasonable space to conduct this
program for one more year is the current space at the
Priordale Mall. The space at the mall currently has
customized flooring, mirrors, stretching rails, storage, and
restroom facilities. To move to another space for the one
season before the new space is built is unrealistic. The
retrofitting alone would drive the price of moving the
program to an alternate space over the budgeted limit.
Another alternative would be to suspend the Dance Program
for the 1998/99 season. This option would be extremely
unfortunate for the participants and parents involved. Many
of our participants have progressed through the ranks of this
program year after year. Suspending it for one year would be
comparable to a high school suspending a varsity athletic
program for one whole year. It would not only be a
disservice on the part of the City, it would also be a
disappointment to our loyal students not to offer this program
next season.
The original lease agreement from 1995-1998 contained the
following yearly figures:
9/95 - 8/96 = $8.42 per sq. ft. Total yearly cost = $22,683
9/96 - 8/97 = $8.75 per sq. ft. Total yearly cost = $23,572
9/97 - 8/98 = $9.00 per sq. ft. Total yearly cost = $24,246
Staff has been in contact with Priordale Mall about entering
into a one-year lease extension. The following rate was
quoted to staff:
9/98 - 8/99 = $12.50 per sq. ft. Total year cost = $33,675
Staff was able to negotiate a $1.00 per sq. ft. lower rate after
the initial quote:
9/98 - 8/99 = $11.50 per sq. ft. Total year cost = $30,981
Conclusion
DANCELEA.DOC
FISCAL IMPACT:
AL TERNA TIVES:
RECOMMENDATION:
ACTION REQUIRED:
REVIEWED BY:
REVIEWED BY:
DANCELEA.DOC
Staff is seeking council support to keep the program at it's
current location. Please see the attached letter from Priordale
Mall Investors and new lease extension. Staff is not pleased
with the increase but it appears to be the only workable
alternative.
Fortunately, the dance program is able to maintain it's self-
supporting status, even with this rent increase. With modest
growth coupled by slight increases in tuition, the program
will remain self-supporting for the 1998/99 season and into
the future. The 1999 preliminary budget will be adjusted to
the tentatively approved lease amount.
1. Direct staff to enter into contract with Priordale Mall for a
one year lease.
2. Discontinue the Dance Program for the 1998/99 season by
not leasing space.
3. Table this item for a specific reason.
Staff Recommends Alternative #1.
A motion, as part of the consent agenda, to direct staff to
enter into a one year lease agreement with Priordale Mall for
the 1998/99 season.
~\
ADDENDUM- #1
That certain tease datea August Zr, 1995; oy ana-between Pnorcfale Maltlnvestors Ijmi~ed
Partnership (Landlord) and the City of Prior Lake (Tenant) is hereby amended as follows:
(rr Laridtord' agrees to extenctlltis tease fOr a one year penoo'from S-eptember r, 1998, to
August 31, 1999.
(2) Gross rent inCluding common area cnarges, taxes ana-insurance ror this periOd is' $11. ~O
per square foot ($30,981.00 yearly paid $2,581.75 monthly). (The common area charges,
rear estate taxes and-insurance are estunateOt'o oe $25o-persquare foot}
(3) Payments not received by the tenth of the month for which they are due will be assessed a
5%' ( five} p'enalty.
All other tenns and conditions remain the same.
PRlORDALE MALL INVESTORS
LIMITED PARTNERSHIP
CITY OF PRIOR LA~
By
Its General and Managing Partner
By
Its Mayor
By:
Its City Manager