Title
RESOLUTION AUTHORIZING LEASE AGREEMENT WITH DAC, LLC FOR LEASE OF WORKFORCE CENTER SPACE IN THE DULUTH ATHLETIC CLUB BUILDING.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are authorized to enter into a three year lease agreement, substantially in the form of the attached Exhibit A, with DAC, LLC for the leasing of approximately 16,712 square feet of space in the Duluth Athletic Club building at 402 West First Street in Duluth, Minnesota for an amount estimated not to exceed $277,418.20 per year for year one, $285,240.42 for the year two and $293,296.27 for year three, payable from the Fund 268-031-6251.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to enter into a three year lease with DAC, LLC to lease substantially all of the old Duluth Athletic Club Building across First Street from City Hall for the purpose of establishing a Workforce Center to be occupied by the City’s Workforce Development Division along with workforce development operations of the State Department of Employment and Economic Development, the Minnesota Office of Job Training and Arrowhead Economic Opportunity Agency. This is a continuation of the operation of the City and these agencies in the building which allows consolidation of the City’s Workforce Development Division operations into a single, cohesive unit.
Under the agreement the City will serve as the prime lessee of substantially the entire building and will then lease portions of the building out to the partners in the Center at the City’s cost so that the city will end up paying only for its proportionate use of the space and facilities. DAC, LLC has agreed that, if the needs of any of the partners change as a result of changes in the scope of services or changes in a partner’s funding, the lease can be adjusted to meet the new circumstances, including rent reductions were appropriate.