HomeMy WebLinkAbout11 - Dance Program Lease Space
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AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
"CELEBRATE PRIOR LAKE'S CENTENNIAL - 1991"
11
BILL MANGAN, PARKS AND RECREATION DIRECTOR
CONSIDER LEASING SPACE AT THE PRIORDALE MALL
FOR THE DANCE PROGRAM
JULY 15, 1991
The Dance Program offered through the
Recreation Department has ourgrown its'
facilities at the Library. With over 200
participants in the program, we can no longer
operate out of the basement of the Library.
The building is. not up to code for this type
of activity and does not provide us with any
expansion alternatives. Staff has researched
different locations throughout the city to
move to with varyin9 results. Staff has to
determine the locat1on of this program now so
that we can advertise the program in the fall
brochure.
Staff has searched several locations to try to
meet the needs of the program. We were
looking for a space that would provide a 3-5
year committment to keep continuity in the
program. Staff met with each Principal of the
Prior Lake School District and, in addition to
not being able to make a 3-5 year committment,
their respectives classrooms are all full
during the day. Staff met with the Building
Committee of st. Paul's Lutheran Church to
research their basement area. While they
could make a longer committment, they didn't
have the money to finish the basement and we
would have had to spend over $20,000 to
complete the classrooms. We would still have
to lease the space afterwards, but
construction costs could have been built into
the lease. After completion, we would have
had to share the facility with the church
which can lead to problems such as damaged
equipment, maintenance and repair, and missing
items due to shared space.
That lead Staff to the Priordale Mall which
would accomplish our goals of providin9 at
grade ingress and egress, restroom facilitles,
a smoke free environment, separate entrance,
and secured storage areas. Preliminary
discussions were held with Neil BOderman,
4629 Dakota 51. S.E., Prior Lake. Minnesota 55372 / Ph. (612) 447-4230 ; Fax (612) 447-4245
An Equal Opportunity! Affirmative Action Employer
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DISCUSSION:
BUDGET IMPACT:
ALTERNATIVES:
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representative of Priordale Mall and there is
adequate space available for lease in the
mall.
At this point, the Dance Pro~ram has generated
almost $40,000 in revenue th1s past year. Of
this amount, almost $15,000 was net revenue
after all expenses were removed. This amount
could be used toward leased s~ace. Optimally,
staff would like to have 1tS' own space
without sharing with others. This program has
200 participants which is lar~e enough, by
itself, to have its' own stud1o. In Prior
Lake, there is simply not a lot of
alternatives available when considering space
on a long term basis.
Fortunately, the Dance Program is able to
maintain its' self-sustaining status. With a
modest growth in the pro~ram coupled with a
slight increase in tuit1on, the program will
remain on a self-sustaining basis.
Staff has sent a copy of the lease to City
Attorney Kessel for his review. Mr. Kessel
responded back with a series of items that
will have to be addressed in the lease. These
items will be discussed by both parties and an
agreed upon lease would have to be approved by
the City Council.
This proposal would certainly have an im~act
on the budget. The preliminary discuss10ns
with Mr. Boderman of the Priordale Mall have
resulted in estimated lease costs of $16,000
annually rising to $22,000 annually on the
fourth year of the lease. While staff feels
that this rate is favorable, it is a cost that
has not been incurred in the past. There are
certain risks involved in leasing of space
over the four years. Continuation of the
program, increased program expense, decreased
participation, and an unknown economic future
are all part of the risk involved in this
decision. However, staff feels that the
program is solid and that it will be able to
pay its' way in the future. For budgetary
reasons, it is important to point out that no
property tax dollars are used to support this
program. All lease ex~enses would come from
program participant tU1tion.
The alternatives are as follows:
1. Direct staff to negotiate a satisfactory
lease at the Priordale Mall for space for
the Dance Program;
RECOMMENDATION:
ACTION REQUIRED:
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2. Drop the Dance Program due to a lack of
community space for the program;
3. Table this item for further research of
facilities available in the community;
Staff would recommend Alternative #1, direct
staff to negotiate a satisfactory lease
agreement at the Priordale Mall. Staff feels
that this would be the best solution for all
parties. Priordale Mall has space available
to lease; the Citr of Prior Lake will be
bringing 200+ partic1pants weekly into the
mall; these participants are all too young to
drive which means that ~arents will have to
come to the mall. Wh11e staff believes that
the Priordale Mall has adequate space to
offer, the City of Prior Lake can offer
something to the mall as well.
A motion is in order to direct
negotiate an acceptable lease for
Program with the Priordale Mall
agreed to by all parties, have
approved by the City Council.
staff to
the Dance
and, once
the lease