History: NorthPoint currently operates a food shelf at its main campus (1315 Penn Avenue North in Minneapolis). The NorthPoint Health & Wellness Center expansion project (set to begin construction in 2019) requires that the food shelf be relocated for up to 24 months. 1835 Penn Avenue is approximately one-half mile north of the main campus and will allow the food shelf to continue to serve many of its existing customers - approximately 1,048 households and 2,800 individuals each month.

Previously presented plans to locate a temporary food shelf on the county’s parking lot across the street from NorthPoint’s main campus proved cost prohibitive. In light of this challenge, a search was conducted and the location at 1835 Penn Avenue was identified. Based on the negotiated business terms, tenant improvement costs at 1835 Penn Avenue location will be significantly lower than the cost of establishing the food shelf on the Penn Avenue parking lot.

The first year’s gross rent will be approximately $17 per square foot or $68,935 annually. The North Minneapolis Community Wellness Center project (CP 0031735) will fund the utilities, waste removal and janitorial services. Tenant improvements and related expenses are not to exceed $48,000, and will be funded under CP 0031735. The county will have the right to terminate the sublease at any time after 18 months with not less than 60 days’ written notice and will have the right to extend the sublease up to six months beyond the 24-month term. Commons at Penn Commercial, LLC, will provide interior and exterior maintenance services.

Equipment is currently in place and available for lease from Sunrise Community Bank. NorthPoint would like to rent this equipment rather than purchasing and installing separate equipment.

Current Request:  Authorization to negotiate Sublease Agreements A189183 with Commons at Penn Commercial, LLC. for space to be used by NorthPoint Health & Wellness Center, Inc. during the period January 1, 2019 through December 31, 2020 in the amount of $68,935 for first year gross rent, plus an amount not to exceed $48,000 for tenant improvements and related expenses and A189235 with NorthPoint Health & Wellness Center, Inc. during the period January 1, 2019 through December 31, 2020 in the amount of $68,935 first year gross rent and authorization to negotiate the lease of equipment with Sunrise Community Bank for an amount not to exceed $20,000.

Impact/Outcomes:  Approval of Sublease Agreements A189183 and A189235 will allow NorthPoint Health & Wellness Center, Inc.’s food shelf to continue to serve people in the community during the renovation and expansion of the NorthPoint Health & Wellness Center facility.