DISCLAIMER

 

08-0122R


RESOLUTION AUTHORIZING AGREEMENT WITH MAURICES INCORPORATED FOR LEASING OF SPACE IN THE CONEY RAMP FOR AN EMERGENCY GENERATOR FACILITY.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, a copy of which is on file in the office of the city clerk as Public Document No. ______________, with Maurices Incorporated to lease space in the alley level of the Coney Island parking ramp for the installation and maintenance of an auxiliary generator facility at a cost of $990 per year, payable to city’s General Fund 100-015-1515-4623.


FAC MGMT/ATTY REA:nmj 1/31/2008


STATEMENT OF PURPOSE:  The purpose of this resolution is to approve a lease with Maurices Incorporated (“Maurices”) to allow them to construct and maintain an auxiliary generator facility for emergency purposes across the alley from their corporate headquarters in alley level of the Coney Island parking ramp.


The headquarters of Maurices, a national chain of specialty clothing stores, is located on north side of Superior Street between First and Second Avenues West; from this location all of its 600+ stores are operated, including all of the computer services required to operate the chain. At present, these computers are powered solely by Minnesota Power’s regular power distribution system and when that system has temporary breakdowns, many of Maurices’ operations are negatively affected, and there is an additional risk that necessary corporate data will be lost.


For this reason, Maurices needs to be able to construct and operate an auxiliary generator facility in close proximity to their headquarters to have a back-up power supply available so that they can continue doing business without material interruption. But all of the real estate they presently own is fully occupied by buildings and not suitable for the location of a diesel-powered generator. However, across the alley from their headquarters buildings is the Coney ramp, both decks of which are open to the air and are therefore suitable for such a facility.


Maurices is willing to rent the equivalent of a parking space in the alley level of the Coney ramp for a ten year term and would construct thereon, at its own cost, its auxiliary generation facility. They are willing to pay a premium rate equal to 1-1/2 times the current standard city parking fee charged for the space in question and to have that fee “indexed” for inflation.