Loading...
HomeMy WebLinkAbout[08a] Lease Extension ISD 742 11 Council Agenda Item 8a MEETING DATE: September 19, 2016 AGENDA ITEM: Administrator Report—Colts Academy SUBMITTED BY: Administration PREVIOUS COUNCIL ACTION: In June 2015 the City and School District entered into a Purchase and Lease Agreement for the property located at 124 Is`Ave SE. The Agreement allowed ISD 742 to remain in the facility through July 1, 2017 at which time they anticipated to move the early childhood program into a new facility. BACKGROUND INFORMATION: Due to the failing ISD 742 referendum, the School District is seeking an extension of the lease to allow them to keep early childhood at the Colts site until the new facility is constructed. ISD is in the process of constructing a new facility behind discovery school and upon completion they will move the St. Joseph offices to that site and vacate the facility. The current lease ends on July 17, 2017 and they would like to extend the lease an additional 12 months; however they could vacate earlier. As part of the lease extension the District agreed to participate in Tax Abatement for the Country Manor Project. Their participation provided S 145,000 to help offset the cost. The City did not have the ability to provide the needed assistance on the tax base of St. Joseph alone. In addition, the provision whereby the City pays up to 50% of the maintenance up to S 15,000 is removed On July 1, 2017 the City will transfer the natural gas and electricity to the City and will bill back the district for 60%, 50% of the refuse (Little Saints will pay the remaining 50% of refuse). The District agreed to free up space so that Little Saints can grow and add more students. In addition, they have freed up gym space and shared space so that LSA has what they need to be effective. The additional rooms and shared space allow the City to increase the rent for LSA as previously agreed. The rent for the District is considered all of the above provisions. With the increased rent, removal of the S 15,000 and clarification on billing, the City should be close to even. It is hard to tell the exact costs as we are basing them all on estimate. Related to the Colts Facility is the planning to convert the space to a community center after ISD 742 vacates the site. The Mayor has established a committee to start the process, but to be effective an architect needs to be involved, similar to what the City did with the Government Center. When the Government Center has sited on the Colts property, the facility allowed for a future connection to the Community Center. The concept included creating a front on Callaway St connecting both buildings with a corridor connecting from the existing doors on the new Government Center. I have requested a proposal from HMA to work with a group to provide the concepts for the conversion of the existing facility to a community center. The services would be funded through sales tax. Without professional services, realistic concepts could not be produced. ATTACHMENTS: Request for Council Action Draft Lease Proposed Community Center Professional Services REQUESTED COUNCIL ACTION: Two separate actions are being requests: 1. Authorize the Mayor and Administrator to execute the Amendment to the Lease/Purchase Agreement between the City of St. Joseph and ISD 742. AND 2. Authorize execution of the proposal between the City of St. Joseph and HMA to prepare concept plans for the renovation of the existing facility at 124 Is`Ave SE to a Community Center AMENDMENT TO THE REAL ESTATE PURCHASE AGREEMENT BETWEEN INDEPENDENT SCHOOL DISTRICT#742 AND THE CITY OF ST.JOSEPH THIS AMENDMENT TO THE REAL ESTATE PURCHASE AGREEMENT (hereinafter referred to as the "Agreement") and made and entered into this day of , 2016,by and between Independent School District 9742 hereinafter referred to as the "Tenant" and the City of St. Joseph hereinafter referred to as the "Landlord". RECITALS WHEREAS, the Tenant was the owner of the real property located at 124 Is`Ave SE, known as Colts Academy, hereinafter referred to as the "Facility"; and WHEREAS, the Tenant and the Landlord entered into a Purchase Agreement on June 15, 2015 which included a Commercial Lease attached as Exhibit B (the Commercial Lease hereinafter referred to as the "Lease Agreement") The Lease Agreement identified the term and conditions of the facility and rights of the Tenant; and WHEREAS, the Tenant has leased the property at no cost to allow ISD 9742 Early Childhood Program to remain at the Facility until the new Early Childhood Center was constructed or July 2017, whichever came first; and WHEREAS, funding for the new Early Childhood Center was part of the referendum posed to voters in ISD 9742. As the referendum was not successful, ISD 9742 has expressed a desire to remain at the Facility for an additional 12 months; and WHEREAS, the Landlord and the Tenant desire to amend sections 2, 3, 6, 22. and 20 of the Lease Agreement, and Exhibit C of the Real Estate Purchase Agreement(Exhibit C hereinafter referred to as the "Building Map")with the express understanding and agreement that all other provisions of the Lease Agreement and Purchase Agreement shall remain in full force and effect. NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the others as follows: 1. Section 2.0 in the Lease Agreement shall be amended in its entirety as follows: TERM. This lease will commence on September 1, 2015 (the "Commencement Date") and shall continue thereafter until whichever of the following events occurs first: July 1, 2018 (the "Termination Date"); the date on which the Early Childhood Education Programs cease to use the property; or, the Lease is otherwise terminated or extended as provided for within the Lease Agreement. All of the Lease Agreements terms and conditions and the terms and conditions of this Amendment shall continue to be in full force and effect from and after the date of this Amendment. 2. Section 3.0 in the Lease Agreement shall be amended in its entirety as follows: RENT. Except for the Tenant's obligations with respect to any sums required to be paid by Tenant pursuant to the Lease Agreement's Terms, such as utilities, insurance, taxes, (if any) and other costs and expenses (collectively the "Rent"), Tenant shall lease the Facility as follows: a. For the period September 1, 2015 through June 30, 2017, the Tenant shall lease the Facility for free. b. For the period July 1, 2017 through June 30, 2018,participation in Tax Abatement for the Country Manor Senior Living Campus in the amount of S 145,000 shall constitute Rent. 3. Section 6.0 in the Agreement shall be amended in its entirety as follows: UTILITIES AND SERVICES. Effective July 1, 2017 the Landlord shall transfer the natural gas and electricity to the name of the City of St. Joseph. The Landlord will bill the Tenant quarterly for 60% of the usage for gas and electric and for 50% of the refuse charges. The Landlord shall be responsible for snow removal and lawn care at its sole cost and the cost for softer salt. The tenant will be responsible for required inspections and follow through. 4. Section 22.20 in the Agreement shall be amended in its entirety as follows: SHARED USE OF GYM. During the term of the Lease, the Tenant will share the use of the gymnasium and kitchen with Little Saints Academy(LSA). The Tenant and LSA will mutually establish a schedule that works for both parties. In the event that scheduling becomes problematic, the City Administrator, along with a representative from the District will meet with both parties to establish the schedule. 5. Exhibit C, the Building Map shall be amended to provide additional space for LSA to expand their business. The revised Exhibit C identifies the addition of rooms 151B and 151A along with the adjoining hall space as transferred space to LSA. 6. The Tenant and the Landlord agree that all other terms, conditions and requirements set forth in the Lease Agreement, and the Purchase Agreement, dated June 15, 2014, shall remain in full force and effect. 7. This Amendment and the Lease Agreement between the Tenant and the Landlord constitute the entire agreement between the parties on the use of the building. There are no understandings, agreements or representations, oral or written, beyond those specified in this Amendment and the Lease Agreement. 8. This Amendment shall be binding upon the parties, their heirs, successors and/or assigns. IN WITNESS WHEREOF, the Landlord has caused this Amendment to be duly executed in its name and behalf and the Tenant has caused this Amendment to be duly executed in its name and behalf on or as of the date first written above. ATTEST CITY OF ST JOSEPH By By Judy Weyrens, Administrator Rick Schultz, Mayor INDPENDENT DISTRICT 742 By STATE OF MINNESOTA ) ss COUNTY OF STEARNS ) This instrument was acknowledged before me on 2016 by Rick Schultz and Judy Weyrens, the Mayor and Administrator respectively, of the City of St. Joseph, a Minnesota municipal corporation, on behalf of said City. NOTARIAL STAMP OR SEAL (OR OTHER TTLE OR RANK) SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICAL STATE OF MINNESOTA ) ss COUNTY OF STEARNS ) This instrument was acknowledged before me on 2016 by , of Independent School District 742, a public corporation under the laws of Minnesota. NOTARIAL STAMP OR SEAL (OR OTHER TTLE OR RANK) SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICAL August 30, 2016 Judy Weyrens, City Administrator City of St. Joseph PO Box 668 St. Joseph MN 56374 RE: City of St. Joseph Community Center Study Dear Judy, Thank you for the opportunity to submit a scope of work and fee proposal for the above noted study. We look forward to our continued work with the City of St. Joseph as they contemplate the renovation of Kennedy School for Community Center uses. The following is a general scope of work that I would anticipate us going through in order to determine the functionality of the existing school building and how it could be renovated to accommodate various community uses as determined through the process. A. Analysis of Existing Facility Conditions and Deficiencies 1. Age of Facility 2. Structural Issues 3. Mechanical / HVAC Systems 4. Electrical Systems / Wiring 5. Size (Square Footage) 6. Number of Staff 7. Front Entrance/Lobby Experience 8. Restrooms 9. Space Use 10. Interior Finishes 11. Equipment 12. Storage 13. ADA Compliance 14. Utility Costs 15. Hours of Operation City of St. Joseph August 30, 2016 page 2 C. Future Facility Needs: Identify Shared Space(s) Potential Workspaces Storage Meeting Rooms IT and Computer Equipment D. Space Needs: Square Footage, as requested by Staff / Community Square Footage, as suggested by standards E. Preliminary Cost Estimates: F. Preliminary Site Design Layouts: Relative to possible additions and/or outdoor activity areas G. Potential funding Sources: As identified by City Staff and incorporated into a budget analysis H. Potential Improvements to Existing Buildings: I. Cost Comparison of Renovation to New Construction: Not sure this will come out of the process but possibly J. Timeline: Work Plan: Task 1: Project Kick-off and Data Gathering: Project kick-off Meeting: We would start the project with a kick-off meeting with an identified task force to achieve a common understanding of the study and its schedule, and begin the background work that sets the foundation for Task 2. As the project moves forward, we anticipate providing the task force with a written update on project status on a regular basis, which may be shared with City departments and/or the Council as needed. We will use a Sharefile system which will allow access to project data to various users with access rights determined by the executive team. Room and Equipment Inventory: We will incorporate an inventory questionnaire that can be used to determine the building space needs that support the analysis effort. This form is completed by City and/or building staff as appropriate, and details the current space, equipment, and other important elements of the existing facility and operations. It also identifies any future needs for equipment and/or space. We will distribute the questionnaire to the task force/staff/City as needed. Field Assessment of Existing Building: While task force members are completing the inventory, our team will complete a field assessment of the existing facility. This assessment will look at functional, structural, and building systems elements, and identify technical issues and concerns to be addressed in the assessment. City of St. Joseph August 30, 2016 page 3 We will review all existing documentation for the School Building as made available by the City and from work previously accomplished in the School Building Study to become familiar with the building construction materials and systems prior to performing the field assessment. Summary of Findings: At the end of the project initiation and data gathering efforts included in Task 1, we will complete a summary of findings. This will be presented to the task force team for review and comment and will be used to form the questions that will be developed for Task 2. We will create a 3D model of existing facilities as part of the data collection work. Task 2: Task Force Meetings: HMA staff will meet with task force members to gather the final information that will help to complete the needs analysis and options. Task 3: Space Needs Analysis: HMA staff will complete the space needs analysis, identifying the specific types of spaces that are adequate or inadequate for current and anticipated needs. Details regarding space area, dimensions, heights, finishes, HVAC, electrical and functional needs will be gathered. The evaluation will be based on typical standards, as well as the specific needs identified by the task force in the survey and interviews. The analysis will look at specific issues the task force will identify including but not limited to: Building space needs to satisfy immediate needs as well as a future planning factor for future expansion. Site access/circulation Determine viability of maintaining existing building operation during renovation/construction. Space requirements for all functional space needs identified by the task force. Identify options – HMA staff will prepare conceptual drawings/models of alternatives for utilizing the existing property to its maximum potential based on the task force’s needs and goals. Opinion of Probable Construction Costs: The task force will review the alternatives and provide comments, before they are finalized for the charrette (Task 4) and project report. An opinion of probable construction costs and conceptual plan for proposed space needs will be developed with input from the task force. Cost data will be based on recent projects bid in this area as well as direct input from local contractors. Task 4: Charrette with task force and community representatives: A design charrette process will be incorporated in order to disseminate information collected to date as well as to gather input on preliminary concepts and additional information to implement in further design phases. Our team proposes to facilitate a design charrette meeting to present the work products from Task 3 (space needs analysis) to the task force for final review and comment before completing the project report. The task force would brainstorm with our team and make modifications or additional recommendations regarding the space plans and future expansion capabilities. City of St. Joseph August 30, 2016 page 4 Task 5: Draft Report: HMA will complete a draft report to the City, including the results of work completed in tasks 1-4. The draft report will include a comprehensive look at immediate and future space needs and will provide a step-by step plan and preliminary opinion of probable construction costs that will provide an overall, long-term approach to meeting the City's needs. The draft report will include the following: Results of the space needs evaluation Concept plans based on space needs analysis (including 3D analysis) Potential funding sources Preliminary opinion of probable construction costs HMA will provide 5 hard copies and one electronic copy of the draft report to the City for review. We will complete changes as needed to present a final draft to City staff and Council. Task 6: Final Report: The final draft report from Task 5 will be presented to the task force and/or the City Council for review. We will assist City staff in presenting the report. When comments have been received, we will incorporate the comments and complete the final report. Five hard copies of the final report, and an electronic version (PDF format), will be provided to the City to complete this portion of the project. Task 7: Schematic Design/Preliminary Budget: Based on the information gathered in Tasks 1 through 6, we will prepare a schematic design package to include proposed floor plans and proposed site layout. This package will look at the potential for existing building renovation to accommodate the current department needs as well as an evaluation of the site or sites to accommodate a renovated Kennedy School to a Community Center facility. Much of our schematic work will be completed utilizing 3D site and building models and utilized in the presentation materials. HMA will meet with the task force to review the Schematic Design to confirm the building and site options meet the needs of the City and represent the findings of Tasks l through 6. Any comments and/or modifications will be incorporated into the Schematic Design materials prior to preparation of the schematic design level opinion of probable construction costs. HMA will again meet with the task force to review the schematic design level opinion of probable construction costs comparing renovation and new construction prior to preparation of the Final Schematic Design Package. Five hard copies and one electronic copy of the approved Schematic Design Package including the schematic design level opinion of probable construction costs will be provided to the City to complete the project. HMA will also consider various optional and alternate elements to present cost options at various budget levels. These options will be carried through the final design process and prioritized for incorporation into the eventual bid documents. City of St. Joseph August 30, 2016 page 5 Compensation: Task 1: Project Initiation and Data Gathering: This task includes one on-site meeting and will be completed for the lump sum fee of: $1,500 Task 2: On-Site Interviews with City Departments: Includes one on-site meeting and will be completed for the lump sum fee of: $1,000 Task 3: Space Needs Analysis: This task will be completed for the lump sum fee of: $5,000 Task 4: Charrette with Task Force to Review Options: Includes one on-site meeting and will be completed for the lump sum fee of: $2,000 Task 5: Draft Report: Includes one on-site meeting and will be completed for the lump sum fee of: $1,000 Task 6: Final Report: Includes one on-site meeting and will be completed for the lump sum fee of: $1,000 Task 7 Schematic Design/Preliminary Budget: Includes two on-site meetings and will be completed for the lump sum fee of: $6,000 We will perform the services identified herein on an hourly basis not to exceed of $17,500 plus reimbursable expenses for printing/reproduction. There will be no charge for mileage or any other expenses. Again, thank you for the opportunity to submit our scope of work and associated fees for your consideration. If you have any questions or concerns regarding the information presented, please feel free to contact me at your convenience. Sincerely, Murray A. Mack, AIA, NCARB, LEED AP HMA Architects