City Council Minutes of February 29, 2016

February 29, 2016


FEBRUARY 29, 2016

Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on February 29, 2016.

A quorum present, Mayor Zieman called the meeting to order at 3:07 p.m.  The following members were present:  Councilmembers Kvamme, Brand, Pfeifer and Mayor Zieman.  Absent were Councilmembers Carlin, Grams, and Parras.  The following official was present: City Administrator Prafke.

Medical Office Building Lease – City Administrator Prafke provided a brief overview of the City’s ownership of the hospital and medical office building and the City Code regulations requiring Council approval for lease of any Clinic space.

Councilmember Grams arrived at 3:08 p.m.

Hospital CEO Rohrich requested approval of a request by the Hospital Commission to lease space in the former River's Edge Clinic (Suite 200) to the Mankato Clinic, Ltd.  Rohrich indicated the lease was structured in two phases with the first phase being lease of 5,275 square feet at an annual rent of $42,200 plus a proportionate share of utilities and phase two being an option for lease of an additional 3,819 square feet. 

Councilmember Parras arrived at 3:09 p.m.

Rohrich pointed out all improvements to the space will be paid by Mankato Clinic and the initial term of the lease was for two years, but stated it could be extended in five year increments.  Rohrich also noted the lease could be terminated by either party with 180 days’ notice.  Rohrich described the lease as a “win-win” that put vacant space to use and provided space for Mankato Clinic dermatology services which wasn’t currently available in Saint Peter.   Rohrich indicated Mankato Clinic would take possession of the space on March 1st if approved.  Councilmembers Brand and Pfeifer congratulated Rohrich on successful negotiation of the lease.

In motion by Pfeifer, seconded by Brand, Resolution No. 2016-45 entitled “Resolution Approving Lease Of Medical Office Building Space”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-45 is contained in the City Administrator’s book entitled Council Resolutions 21. 

There being no further business, a motion was made by Pfeifer, seconded by Grams, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 3:20 p.m.