CCP 11-24-2009 - Laserfiche WebLink

Home Browse Search

• 0 IOf Report Number 09-278 11r=BRKX1T0N Agenda Section VI -5 the city that works for you Council Meeting Date November 24, 2009 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: ADOPT LEASE AGREEMENT WITH NATIONAL INDEPENDENT HEALTH CLUB ASSOCIATION (NIHCA) AT THE FAMILY SERVICE CENTER. DEPARTMENT HEAD'S APPROVAL: Sandy Breuer; Director of Park I and Recreation CITY MANAGER'S APPROVAL: No comments to supplement this Comments attached Recommendation: Waive the reading and adopt the resolution approving the lease agreement with the National Independent Health Club Association (NIHCA) in the Family Service Center. Legislative History: • The City of New Brighton entered into a lease agreement effective November 16, 2006 through December 31, 2007 to lease approximately 382.5 square feet (Room 229) of the Family Service Center, in which, the lease was approved at the November 14, 2006 council meeting. • The City of New Brighton's Economic Development Authority approved Minnesota Health Club Association (MIHCA) to lease space within the Family Service Center at the December 12, 2006 EDA meeting. • The City of New Brighton City Council approved the two year term lease (January 1, 2008 through December 31, 2009) of approximately 382.5 square feet (Room 229) of the Family Service Center at the August 14, 2007 council meeting. • The City of New Brighton City Council approved the Memorandum of Understanding between NIHCA and the City of New Brighton on March 24, 2009. • The City of New Brighton City Council approved the Lease Amendment of the expansion of NICHA to occupy an additional 244 square feet equaling a total of 636.5 square feet. Financial Impact: The National Independent Health Club Association (NIHCA) will be leasing the space for $12 per square foot at 382.5 square feet. The lease agreement is a one year period, January 1, 2010 through December 31, 2010 which will be generating $4,590 annually. Quarterly, NIHCA will pay for data line(s) at a monthly access rate of $15 per line and will also pay 0.5% of all associated utility costs, garbage/refuse pick-up and inspection fees. NIHCA will also provide qualifying Family Service Center fitness members with reimbursement credits on their membership fees for members enrolled in the insurance reimbursement plan at no cost to the FSC budget (cost savings of approximately $1,000). In addition NIHCA holds member meetings and conferences at the FSC, thus generating additional room rental revenue. Explanation: NIHCA is a 501(c)(6) agency and they have been an upstanding tenant for the Family Service Center since 2006. 1:\COIINCII.\REPORTS\2009\Parks & Recreat1on\N1NCA 2010 lease Agreement,doc