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<br /> <br /> Report Number: <br /> Agenda Section: <br /> VReport Date Jul 31 2007 <br /> the city that works for you Council Meeting Date August 14, 2007 <br /> <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> <br /> <br /> ITEM DESCRIPTION: ADOPTING LEASE WITH NATIONAL INDEPENDENT HEALTH <br /> CLUB ASSOCIATION (NIHCA) AT THE FAMILY SERVICE CENTER <br /> <br /> DEPARTMENT HEAD'S APPROVAL: Sand Bre a Director of Parks and Recreation <br /> <br /> CITY MANAGER'S APPROVAL: <br /> <br /> No comments to supplement this report Comments attached <br /> Recommendation: <br /> Waive the reading and adopt the resolution appro ang the lease agreement with the National Independent <br /> Health Club Association (NIHCA) formerly MIHCA in the Family Service Center. <br /> <br /> Legislative History: <br /> The City of New Brighton entered into a lease agreement effective November 16, 2006 through <br /> December 31, 2007 to lease approximately 382.5 square feet (Room 229) of the Family Service Center. <br /> The City of New Brighton City Council approved the lease at the November 14, 2006 council meeting. <br /> The City of New Brighton's Economic Development Authority approved Minnesota Health Club <br /> Association (MII-ICA) to lease space within the Family Service Center at the December 12, 2006 EDA <br /> meeting. <br /> Financial Impact: <br /> The National Independent Health Club Association (NIHCA) will be leasing the space for $12 per square <br /> foot at 382.5 square feet totaling $4,590 per year. The lease agreement is a two year period, January 1, <br /> 2008 through December 31, 2009 generating $9,180 over the two years. <br /> <br /> Quarterly, N114CA will pay for data line(s) at a monthly access rate of $15 per line and will also pay 0.5% <br /> of all associated utility costs, garbage/refuse pick-up and inspection fees. <br /> NIHCA will also provide qualifying Family Service Center fitness members with reimbursement credits <br /> on their membership fees for members who hold Blue Cross Blue Shield and/or UCare and/or Definity <br /> health insurance at no cost to the FSC budget (cost savings of approximately $1,000). <br /> <br /> In addition NIHCA holds member meetings and conferences at the FSC, thus generating additional room <br /> rental revenue. <br /> <br /> Explanation: <br /> NIHCA is a 501(c)(6) agency and they have been an upstanding tenant for the Family Service Center for <br /> the last 10 months. Having a two year lease with NIHCA will help sustain this organization as tenants in <br /> the FSC, as well as, provide them with a reasonable rate. <br /> Cost and Funding: <br /> All room improvements and furnishings will be at the cost of NIHCA. <br /> <br /> <br /> Jason T. West <br /> Assistant Director of Parks and Recreation <br /> 1.C0UNCIL\REP0RTS\2007\Parks and Rcureatinn\NIHCA 2008-09 Lx Agrcement.duc <br />