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Approving and authorizing entering into a Lease Agreement with Avis Budget Car Rental, LLC for retail and parking space in the Block 19 Parking Ramp located at 151 7th Street East (District 17, Ward 2).
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act, and said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community; and
WHEREAS, pursuant to authority granted under Minnesota Statutes Section 469.012 (subd. 12), among other authority, the HRA owns and operates the Block 19 Parking Ramp (“Ramp”) and the retail space therein located at 151 Seventh Street East; and
WHEREAS, Avis Budget Car Rental, LLC (“Avis”) has requested a lease for approximately 1,300 square feet of retail space and approximately 40 parking spaces in the Ramp; and
WHEREAS, the retail space requested by Avis has been vacant and available for leasing since July 2023 and entering into a lease with Avis will derive public benefits, including, reactivating the space, providing car rental opportunities to local residents, aiding the local economy, and aiding in employment opportunities; and
WHEREAS, pursuant to authority granted under Minnesota Statutes Section 469.012 (subd. 1(v)), the HRA is willing to lease the requested retail and parking space to Avis upon certain lease terms, including: (i) a $4,000 security deposit; (ii) an initial lease term of 5 years and up to two 5-year renewal options; (iii) gross office rent of $2,000 per month, and parking spaces rented at $120 per space per month; and
WHEREAS, the retail space requires certain improvements for Avis’s operation and the HRA is willing to provide a customary and market-based tenant buildout allowance of up to $18,000, from the Block 19 Capital Repair Account, for out-of-pocket costs incurred by Avis to improve the leased space and make it suitable for Avis’s occupancy; and
WHEREAS, the HRA’s Policy for the Disposition of HRA-Owned Real Estate dated September 14, 2011 (and adopted September 28, 2011) (which contains newspaper publishing guidance), specifically excludes from such policy leasing space at parking ramp facilities, and, therefore that policy’s requirements do not apply to leasing at the Ramp; and
WHEREAS, consistent with existing HRA policies and Minnesota Statutes Section 469.012, the Board of Commissioners of the HRA held a public hearing before voting on the following resolutions, and notice of said public hearing was published on the regular HRA agenda, and
WHEREAS, having considered the terms of a proposed lease identified above and any information provided at the public hearing, finds a public purpose for leasing of the retail and parking space;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota:
1. that the HRA hereby approves and authorizes entering into a lease agreement with Avis Budget Car Rental, LLC (or its affiliated entity) under the terms herein and in the staff report, including the grant of a standard tenant improvement allowance of up to $18,000 from the HRA’s Block 19 Capital Repair Account.
2. that the HRA hereby approves and authorizes staff, under the direction of the Executive Director, to take any other actions necessary to carry out the activities authorized by this Resolution, including finalizing all documents and agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office.
3. that, subject to approval by the City Attorney’s Office and pursuant to applicable ordinances and bylaws, the only signature that shall be required on a lease or other documents in connection with this Resolution is that of the Executive Director, who is hereby approved and authorized to execute all said documents and instruments, including any future lease amendments and/or termination documents, and such signature(s) shall be sufficient to bind the HRA to any legal obligations therein.
4. that this Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until said documents are executed by the appropriate official(s) of the HRA.