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
end
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 most recent lease expires on December 31, 2022.
Staff recently completed negotiations with DEED for a one-year lease for the use of approximately 1,398 square feet of office space in the Northern Service Center through December 31, 2023 (see Attachment: Lease Amendment Draft). This lease has two automatic one-year extensions for 2024, and 2025 should both the County and DEED agree to the extensions.
The 2023 lease rates are $23.12 per square foot annually, an increase of one and one-half percent over the 2022 rates. Each subsequent extension has a compounding one-and-one-half 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 located in the Dakota County Northern Service Center in West St. Paul, Minnesota.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The revenue from this lease is included in the 2023 County Manager’s Recommended Budget. The increase for 2024 and 2025 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
body
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 through December 31, 2023; and
WHEREAS, should DEED and the County agree to extension terms, the lease will automatically renew for 2024 and 2025; 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 2023 lease rates are $23.12 per square foot annually, an increase of one and one-half percent over the 2022 rates; and
WHEREAS, each subsequent extension has a compounding one and one-half 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 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, 2023, through December 31, 2023, including two possible one-year extensions, subject to approval of the County Attorney’s Office as to form.
end
PREVIOUS BOARD ACTION
None.
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