DEPARTMENT: Parks, Facilities, and Fleet Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Lease Agreement Amendment With State Of Minnesota Department Of Administration On Behalf Of Minnesota Department Of Employment And Economic Development For Office Space At Northern Service Center
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PURPOSE/ACTION REQUESTED
Authorize lease agreement amendment with Minnesota Department of Employment and Economic Development (DEED) for office space located at the Northern Service Center.
SUMMARY
Space related to the Career Force Center is currently used by the following agencies at the Northern Service Center:
• DEED
• HIRED
• Avivo, formerly Resource Inc.
HIRED and Avivo are two private non-profit agencies that contract with Dakota County to provide employment and training services to persons eligible for the Workforce Investment Act, State and Federal dislocated worker programs, and the Minnesota Family Investment Program in Dakota County. Because these two agencies coordinate service delivery with the County and State of Minnesota, these agencies have had office space in the Northern Service Center since 2007.
DEED has leased space in the Northern Service Center since 2002. Their current lease was executed in late 2022 for the calendar year 2023. The lease includes provisions to extend the terms for 2024 and 2025, respectively.
DEED has reduced the presence of staff on site at the Northern Service Center and will reduce their space used by 1,052 square feet from 1,398 to 346 square feet of office space effective April 1, 2024.
Staff recently completed negotiations with DEED for a one-year lease amendment for the use of approximately 1,398 square feet of office space through March 31, 2024, then 346 square feet of office space from April 1, 2024, through December 31, 2024, in the Northern Service Center (Attachment: Lease Amendment Draft). This lease has two automatic one-year extensions for 2025 and 2026, should both the County and DEED agree to the extensions.
The 2024 lease rates are $23.47 per square foot annually, an increase of 1.5 percent over the 2023 rates. Each subsequent extension has a compounding 1.5-percent rate increase over the prior year. Rates are consistent with comparable County space.
RECOMMENDATION
recommendation
Staff recommends that the County Board authorize execution of the lease agreement amendment with DEED for approximately 1,398 square feet of office space through March 31, 2024, then 346 square feet of office space from April 1, 2024, through December 31, 2024, located in the Dakota County Northern Service Center in West St. Paul, Minnesota.
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EXPLANATION OF FISCAL/FTE IMPACTS
The revenue from this lease is included in the 2024 Facilities Management Adopted Budget. The increase for 2025 and 2026 will be included in future County Manager’s Recommended Budgets. The rental income will cover the costs of cleaning, maintenance, phones/telecommunications, and utilities.
☐ 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 license agreements; and
WHEREAS, the State of Minnesota Department of Employment and Economic Development (DEED) uses space in the Northern Service Center to provide Workforce Center and related services; and
WHEREAS, DEED has used space in the Northern Service Center since 2002; and
WHEREAS, DEED desires to continue to use approximately 1,398 square feet of space in the Northern Service Center from January 1, 2024, through March 31, 2024; and
WHEREAS, DEED will reduce their use of office space to 346 square feet of space in the Northern Service Center from April 1, 2024, through December 31, 2024; and
WHEREAS, should DEED and the County agree to extension terms, the lease will automatically renew for 2025 and 2026; and
WHEREAS, staff from Facilities Management, the County Attorney’s Office, and DEED have agreed to lease terms for the space use in accordance with the attached agreement; and
WHEREAS, the 2024 lease rates are $23.47 per square foot annually, an increase of 1.5 percent over the 2023 rates; and
WHEREAS, each subsequent extension has a compounding 1.5-percent rate increase over the prior year; and
WHEREAS, rates are consistent with comparable County space; and
WHEREAS, the lease rates cover costs associated with the cleaning, maintenance, phones/telecommunications, and utilities within the space.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Parks, Facilities, and Fleet Management Director to execute a Lease Agreement Amendment with the State of Minnesota Department of Employment and Economic Development for approximately 1,398 square feet of rentable office space located at the Northern Service Center in West St. Paul, Minnesota, substantially as presented, for the period from January 1, 2024, through March 31, 2024, reducing the space to 346 square feet of rentable office space from April 1, 2024, through December 31, 2024, including two possible one-year extensions, subject to approval of the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
22-564; 12/13/22
ATTACHMENTS
Attachment: Draft Lease Agreement Amendment
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACT
Department Head: Taud Hoopingarner
Author: Mike Lexvold