Board Control of Extracurricular Activities X. Xxxx. Excellence. Every School. Every Student. Every Day. Report to the School Board Storage Facility Lease Agreement June 18, 2019 Report Prepared by Xxxx Xxxx, Director of Bu siness Services Overview On May 15, 2018 a short‐term lease agreement (5/15/18 – 9/30/19) under $50,000 for approximately 5,500 square feet of storage space was signed with SOS Properties, due to the impending flexible seating furniture initiative and the need for storage on a temporary basis for IT purchases during the summer. Storage at the building level was also reaching the point of needing additional space for overflow furniture and equipment (mainly desks, tables and chairs). Storage facility lease agreements are covered under the District’s lease levy property tax. As we have begun the start of the flexible seating furniture initiative, it has become apparent we need more space for incoming deliveries before dispersal to buildings. The district has also explored the possibility of building an additional garage/storage facility on the northwest corner of the Eisenhower property for vehicle storage (T+ buses, District vehicles and District food trucks). This garage/storage facility would not need to be built at this time if we entered into this lease agreement. Recently, an opportunity has become available to lease the old Hitchin’ Post property located at 000 00xx Xxx. N in Hopkins. This lease agreement, encompassing 17,585 square feet, would solve the issues of the need for space for the flexible seating furniture initiative, as well as housing our District vehicles. The convenient location is also an advantage for access by District personnel. The Director of Business Services is recommending that we terminate the old lease at its conclusion and enter into a new five‐year lease for effective 7/1/19 for this property. An alternative option is to enter into a 2‐year lease with an option to extend for an additional two Excellence. Every School. Every Student. Report to the School Board Storage Facility Lease Agreement June 18, 2019 years. This lease also qualifies for property tax lease levy funding. The increased cost of this lease will keep us under our lease levy limit based on revised enrollment projections for FY19‐20. Primary Issues to Consider The primary issue is whether to approve the storage facility lease agreement with SOS Properties LLC for either a five‐year term, or a two‐ year term with an option to extend for another two years. Recommendation That the School Board...
