Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Agreements with The 927 Building, LLC and Tri-Construction for 927 W Broadway (RCA-2022-00527)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Policy & Government Oversight Committee | May 23, 2022 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Contract/Agreement | Authorizing a lease agreement with The 927 Building, LLC, for the Health Department's Youth Violence Prevention Program at 927 W Broadway– Adolescent Services, for a term of three (3) years, with the right to extend an additional three years. |
| 2 | Action | Contract/Agreement | Authorizing a construction contract with Tri-Construction for improvements to 927 W Broadway for the Health Department's Youth Violence Prevention Program – Adolescent Services. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 5 | Near-North | 927 W. Broadway, Minneapolis MN 55411 |
Background Analysis
Note that this RCA is pending the review of Procurement.
The attached new lease is for a new office/service location of the Health Department’s “Group Violence, Intervention-Adolescent Services Program” at 927 West Broadway Avenue, Minneapolis, Minnesota 55411, an important and valued community service in North Minneapolis.
The initial term of the lease is three (3) years, with the right to extend an additional three (3) years. The lease is for 1,994 square feet of rentable area on the building's first floor and basement level. The first year's annual rent will be $25,635, or $2,136 per month/$12.84 square foot. The per square foot rate is in line with the city's other comparable leases. The City’s Pro Rata Share of operating costs shall be $3,623.58 per month in the first year and include costs such as: real estate taxes and special assessments; heating and cooling utilities; management fee not to exceed 5%; fees for professional services; maintenance of landscaping/lawn care; snow removal; maintenance of elevator, plumbing HVAC; and janitorial services, among others.
The premises is currently unfinished shell. The Health Department will contract with Landlord’s contractor for construction of the buildout of additional improvements, as shown in Exhibit-C of the attached Contractor Agreement (“Landlord Improvements”). The construction contractor, Tri-Construction, is a target market contractor. The final product will be a program-specific buildout of the spaces before the Commencement Date of the lease. The $139,905.00 cost, minus a landlord provided $20K allowance for the improvements, will be paid by the Health Department.