Background:
Hennepin County Human Services and the Department of Community Corrections and Rehabilitation (DOCCR) lease space in a variety of locations. The pandemic and resulting remote workforce created an environment of rapid technology and business process innovation. This allowed the county to continue to meet residents’ needs in flexible, efficient ways that value quality interactions with residents. The capability to serve residents remotely results in a reduced need for facility space.
Hennepin County Human Services proposes a reduction in facility utilization and termination of lease agreements. The new model focuses on:
- Utilizing the county’s six Human Service Centers that provide a large facility footprint to leverage services throughout the county.
- Maximizing county owned spaces.
- Safe and efficient interactions with residents in county spaces or in the community by moving towards an appointment-based model.
- Leveraging technology when and if possible, to facilitate ease and accessibility for residents.
If approved, the county will end the Human Services lease at the following location:
1201 East Lake Street, Minneapolis
County Occupant – Human Services: Office of Multicultural Services
Lease - A10419
Rentable Square Footage – 10,000
Landlord – Blue Horn Properties, LLC
Expiration Date – 1/31/27
Termination date – 06/30/21(includes 90-day notice)
Net saving from termination – $1,304,700 ($19,429/month x 67 months)
Similarly, DOCCR restructured services and reentry plans due to the COVID pandemic. This increased community and remote working; resulting in a need for fewer facilities. If approved, the county will end the DOCCR leases at the following locations:
3015 12th Avenue South, Minneapolis
County Occupant – DOCCR: Juvenile and Adult Probation
Lease - A030869
Rentable Square Footage – 11,400
Landlord – Blue Horn Properties, LLC
Lease Expiration Date – 12/14/23
Termination date – 2/28/21(includes 120-day notice)
Net saving from termination – $792,271 ($23,650/month x 33.5 months)
6040 Earle Brown Drive, Brooklyn Center
County Occupant – DOCCR: Juvenile Probation
Lease – A061452
Rentable Square footage – 7,390
Lease Expiration Date – 01/31/25
Termination date – 4/30/21 (includes 120-day notice)
Net saving from termination - $470,067 ($10,438 per month x 45 months)
The total net savings from termination of leases is $2,567,038. DOCCR and Human Services continue to evaluate space needs and may suggest additional lease terminations in the future.
Current Request: This request seeks authorization to terminate leases A10419, A030869, and A061452.
Impact/Outcomes: Termination of these leases would allow the county to vacate unoccupied space and save $2,567,038 over the terms of the leases.