Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Contract amendment with Hillcrest Development for Public Works parking at 900 6th Ave SE (RCA-2025-00981)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Administration & Enterprise Oversight Committee | September 2, 2025 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Contract/Agreement | Authorizing an amendment to Contract No. C-44233 with Hillcrest Development to reduce the number of parking stalls to 51 and adjust the monthly rent for a new reduced total contract amount of $244,260, for Public Works employee parking at 900 6th Ave SE. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 3 | Marcy Holmes | 900 6th Ave SE |
Background Analysis
The Public Works Water Distribution campus, "East Side Yard" is currently located at 935 5th Ave SE, a neighborhood with high-density housing and significant commercial activity. Public Works consolidated water distribution maintenance and metering operations and relocated meter staff from the Fridley Campus to the East Side Yard to improve work efficiencies. The added staff placed additional parking demands on the East Side Yard site and already-scarce street parking. This created the need to lease adjacent off-street parking. Hillcrest Development, the owner of 900 6th Ave SE. has a large parking lot directly across the street from the East Side Yard site. To mitigate any negative impact to the neighborhood and also accommodate the parking needs of Water Division staff, Public Works has been leasing 70 parking stalls from Hillcrest since 2018. The City recently received a notice of termination letter from Hillcrest related to this agreement. Hillcrest is no longer able to provide the City with same number of parking stalls due to a new tenant in their building that requires more parking space than is currently available. Hillcrest agreed to amend the City's current lease by reducing the overall number of spaces available for City staff from 70 to 51. Hillcrest has agreed to continue leasing parking space to the City under the following terms:
- The number of parking stalls is reduced to 51
- The notice of termination is retracted on execution of this amendment
- Term of the amendment is September 1, 2025 through September 30, 2026 with one option to renew for an additional year
- Rent rate for the first 13 months is $6375/month, and the option period is $6630/month
- Either party may terminate the agreement with 30 days written notice
- Either party may reduce the number of stalls with 30 days written notice