5. HRSR 12-03-2007 - Laserfiche WebLink

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ITEM # 5. aty E t~ver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic DATE: December 3, 2007 Development SUBJECT: Consider Lease Agreement with Elk River Area Arts Alliance for 716 Main Street Attachment • Email correspondence from Patrick Grace dated October 11, 2007 • Draft Lease Agreement between HRA and Elk River Area Arts Alliance Action Requested The HRA is asked to review and consider approval of the attached Lease Agreement with the Elk River Area Arts Alliance for 716 Main Street. Background At its November 5, 2007 meeting the HRA reviewed the attached email lease request from the ERAAA for the use of the 716 Main Street building. The HRA authorized the preparation of a draft 2-year lease agreement with the ERAAA for use of the 716 Main Street building. Staff has been working with the HRA's attorney to prepare the attached draft lease agreement consistent with the framework that was presented by the ERAAA. The ERAAA Executive Director Patrick Grace has reviewed and generally accepted the lease agreement as drafted, subject to review and approval by the ERAAA Board of Directors. In summary the lease provides for: • 2-year term from January 1, 2008 to December 31, 2010. • Rent in the amount of $1.00 for the entire term. • Use of the first floor space (approximately 3,370-square feet) for administrative offices, art gallery and sales, meetings, programming and receptions. • The Sherburne County Assessor has determined the property to be exempt from real estate taxes. • Utilities will be the responsibility and cost of ERAAA. • ERAAA will be required to carry general liability, property, and workers compensation insurance.