DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Sublease Agreement Amendment No. 3 Between Dakota County And State Of Minnesota Department Of Administration For Office Space Located In Burnsville Workforce Center
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PURPOSE/ACTION REQUESTED
Authorize the execution of a sublease agreement amendment with the State of Minnesota Department of Administration, acting for the benefit of the Department of Employment and Economic Development (DEED), for office space located in the Burnsville Workforce Center.
SUMMARY
Since 2006, Dakota County’s Department of Employment and Economic Assistance has provided employment-related services at the Burnsville Workforce Center. In June 2013, the State of Minnesota Department of Administration, acting for the benefit of DEED, negotiated a new lease with 2800 Holding LLC for office space located at 2800 W. County Road 42, Burnsville, MN 55306. This location is close to the former location. Dakota County entered into a sublease for approximately 1,292 square feet of space with DEED to provide the County space for employment-related services at the new location from June 1, 2013, through May 31, 2018. Dakota County entered into a five-year sublease amendment from June 1, 2018, through May 31, 2023.
When that term ended, the current landlord and DEED were working toward future space considerations. At that time, DEED and County staff negotiated a space reduction that took two steps to implement. Each of these brought the sublease terms to December 31, 2023, which was authorized by the County Board on May 21, 2024. Since that time, staff has negotiated the terms for the 2024 period.
Facilities Management, along with Employment and Economic Assistance staff and the State of Minnesota Department of Administration, acting for the benefit of DEED, have agreed to the 2024 sublease amendment terms and the rental rates listed below:
January 1, 2024, through December 31, 2024 - $21.55 per square foot, or $14,998.80 per year.
The rental rate is based on the negotiated rate between DEED and the landlord. The space reduction has reduced the County space to 696 square feet. This will result in a payment of $1,249.90 per month.
RECOMMENDATION
recommendation
Staff recommends execution of a sublease agreement amendment with the State of Minnesota Department of Administration, acting for the benefit of DEED, for office space located in the Burnsville Workforce Center.
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EXPLANATION OF FISCAL/FTE IMPACTS
The lease expenses are included in the Department of Employment and Economic Assistance operating budget.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Dakota County Board of Commissioners must approve all leases; and
WHEREAS, the State of Minnesota Department of Administration, acting for the benefit of the Department of Employment and Economic Development (DEED), has entered into a lease with 2800 Holding LLC for office space in Burnsville, MN; and
WHEREAS, the Dakota County Department of Employment and Economic Assistance entered into a sublease with DEED to use approximately 1,292 square feet of space to provide employment-related services from June 1, 2013, through May 31, 2018; and
WHEREAS, the Dakota County Department of Employment and Economic Assistance entered into a sublease agreement amendment with DEED to use approximately 1,292 square feet of space to provide employment-related services for the period from June 1, 2018, through May 31, 2023; and
WHEREAS, when that term ended, the current landlord and DEED were working toward future space considerations; and
WHEREAS, DEED and County staff negotiated a space reduction that took two steps to implement; and
WHEREAS, combined, these brought the sublease terms to December 31, 2023, which was authorized by the County Board on May 21, 2024; and
WHEREAS, since that time, staff has negotiated terms for the 2024 period; and
WHEREAS, Facilities Management, along with Employment and Economic Assistance staff and the State of Minnesota Department of Administration, acting for the benefit of DEED, have agreed to the 2024 sublease agreement amendment terms for the space; and
WHEREAS, the rental rate is based on the negotiated rate between DEED and the Landlord of $21.55 per square foot; and
WHEREAS, the space reduction has reduced the County space from 708 to 696 square feet; and
WHEREAS, the rent for the period will be $1,249.90 per month, or $14,998.80 per year; and
WHEREAS, the County Board finds that the lease is consistent with the County’s interest in providing employment-related services.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Parks, Facilities, and Fleet Director to execute a sublease agreement amendment with the State of Minnesota Department of Administration, acting for the benefit of the Department of Employment and Economic Development, according to the following rental rates, subject to approval by the County Attorney’s Office as to form:
January 1, 2024, through December 31, 2024, $1,249.90 per month
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PREVIOUS BOARD ACTION
14-135; 6/17/14
18-436; 8/21/18
24-277; 5/21/24
ATTACHMENTS
Attachment: Draft Sublease Agreement Amendment No. 3
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Taud Hoopingarner
Author: Mike Lexvold