Title
Requesting approval of a lease with the owner of 9 5th Street East for City office space.
Body
WHEREAS, the City of Saint Paul ("City") is proposing to enter into an 8-year lease agreement ("Lease") with Osborn370 LLC (“Landlord”), which owns the commercial office tower at 9 5th Street East, Saint Paul, for City use of 10,694 square feet of office space in Landlord's building ("Leased Premises"); and
WHEREAS, the City has determined that it wishes to occupy the Leased Premises to house operations of key city staff focused on downtown revitalization efforts through collaboration with each other and with private- and non-profit-sector partners, which use:
• Is consistent with the City’s 2025 policy and budget priorities to help stabilize downtown, spur redevelopment, and stabilize and grow the downtown tax base;
• Demonstrates a commitment to support and encourage efforts of key downtown property owners to help stabilize and strengthen the downtown commercial office market and downtown tax base and attract new building owners and commercial tenants; and
WHEREAS, the Lease commences upon city occupancy of the Leased Premises on or about October 1, 2025 and terminates eight years following that date in 2033; and
WHEREAS, key terms of the lease include:
• Flexibility on initial occupancy date,
• Space in great condition, partially furnished, minimal up-front investment to move and establish operations,
• Landlord financing for tenant improvements, and
• No rent for first 12 months of occupancy,
as provided in Exhibit A attached hereto; and
WHEREAS, the Real Estate Section of Financial Services has determined that the agreed upon rent represents the fair market value of the property; now, therefore, be it
RESOLVED, that the Council of the City of Saint Paul does hereby approve the Lease in a form and content substantially as set forth in Exhibit A attached hereto, and authorizes the proper city officials to execute the Lease.