04-0349R

RESOLUTION AUTHORIZING AMENDMENT TO THE GOVERNMENT SERVICES CENTER LEASE AGREEMENT WITH ST. LOUIS COUNTY FOR PARKING BEHIND GOVERNMENT SERVICES CENTER IN THE AMOUNT OF $130 PER MONTH.

BY COUNCILOR LITTLE:

RESOLVED, that the proper city officials are authorized to enter into an amendment to the existing lease agreement, a copy of which amendment is on file in the office of the city clerk as Public Document No. __________; St. Louis County to add to said lease the leasing of the parking spaces between the Government Services Center and Second Alley in the amount of $130 per month, payable from General Fund 0100-200-1610-5412 and Fleet Services Fund 0660-015-1560-5412.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize an amendment to the city's agreement for use of the Government Services Center property to include parking along the alley.

The city entered into a long term lease with the state of Minnesota, the original owner of the building at the time of its construction pursuant to which the city paid a one-time capital lease payment towards the construction cost of the building and received in turn a 50 year lease on the police parking garage and police parking storage area in the parking ramp. When the building was constructed, it was set back from the alley line a distance of six to eight feet and the police department has historically used that space for temporary parking of vehicles involved on department business; the space accommodates about nine vehicles. However it was not technically shown as part of the leased premises in the lease.

After the county bought the building from the state, they revisited this issue and informed the city that, in order to continue using the space, the city would have to lease it and pay for it. This resolution authorizes an amendment to the base lease which would add this property to the lease in consideration of a payment of $130 per month. The county requires, however, that they retain the right to increase the cost of the lease in conformance with their lease rates to other tenants and also that they have the unilateral right to terminate this portion of the lease without cause on 60 days notice.