Item Coversheet

Board Action Request
22-0323


Item Description:
Negotiate Lease Agmt A2211357 with 2 Dope Chicks, LLC and Lease Agmt A2211358 with ADS Catering for rental of retail space at Government Center (600 S. Sixth St, Mpls), 09/01/22-12/31/27, $37,000 combined estimated first year rent
Resolution:

BE IT RESOLVED, that the County Administrator be authorized to negotiate Lease Agreement A2211357 with 2 Dope Chicks LLC (dba 2 Dope Chicks) for rental space in the lower level of Government Center, for the approximate period of September 1, 2022 through December 31, 2027, in the estimated receivable amount of $29,000 first year rent; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the Agreement on behalf of the County and that the Controller be authorized to accept and disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Lease Agreement A2211358 with ADS Catering (dba Hilltop Coffee) for rental space in the skyway level of Government Center, for the approximate period of September 1, 2022 through December 31st, 2027, in the estimated receivable amount of $8,000 first year rent; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the Agreement on behalf of the County and that the Controller be authorized to accept and disburse funds as directed.

Background:

The Government Center is located at 300 6th Street S., Minneapolis. The Building contains two food retail spaces, a 5,979 square foot lower-level restaurant space and a 950 square foot skyway level coffee bar. The two spaces were previously leased to Park Café GC Inc. which terminated its lease on January 31, 2022. In May 2022, Hennepin County issued a Request for Proposals for lease of the two spaces. After evaluation, two proposals are recommended for lease agreements:

  • Lease Agreement A2211357 with 2 Dope Chicks LLC, dba 2 Dope Chicks, for the lease of 5,979 square feet in the lower level of Government Center
  • Lease Agreement A2211358 with ADS Catering, dba Hilltop Coffee, for lease of 950 square feet in the skyway level of Government Center

 

2 Dope Chicks is a minority- and woman-owned small business currently based in the Northtown Mall. 2 Dope Chicks will relocate to the Government Center lower level and will offer a range of breakfast and lunch food options including hot breakfast items, burgers, pasta, salads, and soul food. Lease A2211357 will be a modified gross rent lease with first year monthly rent set at $1,750 plus 2% of gross sales (total first year rent estimated at $29,000). The tenant will additionally be responsible for property taxes and special assessments. The initial term of the lease will be five years and will commence on or around September 1, 2022.

 

ADS Catering, doing business as Hilltop Coffee, is a minority- and immigrant-owned small business with a school catering operation and a full-service restaurant known as Hilltop International Cuisine located in South St. Paul. Hilltop Coffee will offer a range of coffee and espresso beverages, specialty Ethiopian coffee, as well as bakery and grab-and-go food items. Lease A2211358 will be a modified gross rent lease with first year monthly rent set at $350 plus 2% of gross sales (total first year rent estimated at $8,000). The tenant will additionally be responsible for property taxes and special assessments. The initial term of the lease will be five years and will commence on or around September 1, 2022.

 

The spaces will be leased “as-is” with no construction or leasehold improvements performed by Hennepin County. Both tenants plan to replace signage and redecorate their respective spaces. No structural changes to the spaces are proposed.

 

Current Request: Authorize the negotiation and execution of Lease Agreement A2211357 with 2 Dope Chicks LLC for the lease of 5,979 square feet in the Government Center lower level, and Lease Agreement A2211358 with ADS Catering for the lease of 950 square feet in the Government Center skyway level.

 

Impact: Approval of these lease agreements will fill vacant retail space at the Government Center building with two small, minority-owned businesses and will provide a variety of food and beverage options for county and court staff and the general public.

Recommendation from County Administrator: Recommend Approval