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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
Contract amendment with Minneapolis Park & Recreation Board for operation of the Commons (RCA-2019-01396)

ORIGINATING DEPARTMENT
Minneapolis Convention Center
To Committee(s)
# Committee Name Meeting Date
1 Ways & Means Committee Dec 10, 2019
Lead Staff:
Jeff Johnson
Presented By:
Jeff Johnson
Action Item(s)
# File Type Subcategory Item Description
1 Action Contract/Agreement

Authorizing an increase to Contract No. COM0000619 with the Minneapolis Park & Recreation Board, in the amount of $175,000, and an extension through March 31, 2020, for The Commons sublease agreement.

Ward / Neighborhood / Address
# Ward Neighborhood Address
1. Ward 3 Downtown East 425 Portland Ave S, Minneapolis, MN 55415
Background Analysis

The Commons was one component of a five-block development project. Under a development agreement among the City, the Minnesota Sports Facilities Authority and Ryan Companies, Ryan acquired the site and constructed certain basic improvements prior to conveyance of the Commons to the City in 2016. The City thereupon conveyed fee title to MPRB and MPRB ground leased the Commons back to the City for a period of up to 50 years pursuant to a Memorandum of Understanding between the City and MPRB that established a framework for cooperation on the ownership and operation of the Commons. Green Minneapolis has provided operation, maintenance and programming services for the Commons under contract C- 42166 (the “Operating Agreement”) since 2017.

Last spring, Hennepin County District Court Judge Bruce A. Peterson enjoined the City from continuing to operate and maintain the Commons (File No. 27-cv-17-16643). The City and the MPRB have appealed this ruling to the Minnesota Court of Appeals.

To comply with the ruling, MPRB subleased the Commons and assumed the balance of the contract with Green Minneapolis while waiting for the result of the appeal. The Judge’s decision in regard to the lawsuit is expected in late January of 2020. In order to allow time for staff to react operationally and so that maintenance and staffing remain consistent, City and MPRB staff would like to extend the current agreements through then end of March. MPRB has requested $175,000 in funding from the City to cover the cost of the Green Minneapolis contract extension.