History: As part of the development of Target Field Station, Hennepin County, the Hennepin County Regional Railroad Authority, and the Hennepin County Housing and Redevelopment Authority partnered to support a number of physical improvements to Target Field Station, including shell construction of two commercial spaces.
United Properties and Hennepin County recently entered into a Letter of Intent for the lease of approximately 1,238 square feet of retail space located at 501 5th Street North, Minneapolis (Target Field Station, Tract AW, Registered Land Survey 1837) immediately adjacent to Caribou Coffee. United Properties intends to use this space as a ticket venue in conjunction with the hotel and event center presently under construction and scheduled to open in 2019.
Lease Agreement A188823 includes an initial 10-year term with three five-year extension periods, the first four months rent free to permit fit out work to be completed by United Properties, and an allowance to United Properties not to exceed $7,500 for the purchase and installation of a three-ton HVAC unit and the connection of a one-inch waterline to water service located in the garage structure immediately beneath the premises.
United Properties shall be responsible for the cost of maintenance and operations, including utilities, property taxes, and a proportionate contribution of the common area expenses of Target Field Station.
Current Request: Authorization to negotiate Lease Agreement A188823 with United Properties for
approximately 1,238 square feet of retail space located at 501 5th Street North, Minneapolis for a 10-year period, in the receivable amount of $6,667 for first year rent, less an allowance not to exceed $7,500 for leasehold improvements and related construction expenses.
Impact/Outcomes: Negotiation of Lease Agreement A188823 will allow the county to lease out approximately 1,238 square feet of retail space as part of the development and construction of Target Field Station.