Laserfiche WebLink
'~ J/ <br />acy or <br />Elk ,^ REQUEST FO R ACTIO N <br />River <br />To Item Number <br />Housin & Redevelo ment Authori 5 <br />Agenda Section Meeting Date Prepared by <br /> Catherine Mehehch, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider Approval of Lease Renewal Terms with the Arts <br />Alliance for 716 Main Street Building Reviewed by <br />Action Requested <br />The HRA is asked to authorize the HRA Chair and Executive Director to enter into a lease agreement <br />with the Elk River Area Arts Alliance for 716 Main Street, subject to the lease renewal terms generally <br />described below. <br />Background/Discussion <br />At its November 2009 meeting the HRA directed staff to negotiate terms for a lease renewal with <br />ERAAA for 716 Main Street. The lease renewal terms shall be subject to the same terms as the current <br />lease with the following exceptions: <br />• Lease term shall be up to 2-years with automatic renewal after 1-year unless HRA issues a <br />6-month notice. <br />• Leased premises shall include only 716 Main Street building (first floor and basement) for <br />uses specified in the lease. <br />• ERAAA shall be responsible for reimbursing the HRA's insurance cost relative to the leased <br />premises - $109.08/month fox period 1-1-2010 to 7-1-2010. HRA will notify ERAAA in <br />writing of the insurance premium due the following 6-months thereafter. <br />• ERAAA shall be responsible for routine maintenance and utilities. Cost for structural or <br />mechanical repairs and replacements necessary to occupy the building in an amount over <br />$1,000 shall be shared 50/50 between the HRA and ERAAA. In the event of a significant <br />repair that extends the life of the building, the HRA would allow the ERAAA portion to be <br />amortized and paid back over a negotiated period of time. <br />Financial Impact <br />The lease agreement is not subject to the collection of rent revenue due to its tax-exempt status. <br />However, under the lease ERAAA is responsible fox routine maintenance, utilities and insurance <br />associated to their occupancy of the building. <br />Attachments <br />• Lease Agreement dated December 12, 2007 between HRA and ERAAA <br />S:AI~aA\HRA\IIoukon Buildings\Arts Alliance\Action Requested 12.7.OJ.doc <br />