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C Leases for OVH and St Hubert MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Justin Miller, Assistant City Manager DATE: May 15, 2006 RE: Lease Arrangements for Old St. Hubert’s Church and Old Village Hall Both the Old Village Hall and Old St. Hubert’s Church are currently vacant. The Chamber of Commerce moved out of Old Village Hall this month, and Homestead Church vacated Old St. Hubert’s Church in December. At this time, staff is ready to find suitable tenants for both buildings. One of the best ways to ensure that older structures avoid further disrepair is to maintain a daily presence in them. Staff recently placed an advertisement in the southwest newspapers soliciting office renters for Old Village Hall. We received several inquiries, and began negotiating a lease with an interested party. Unfortunately, we could not come to terms on the lease, so right now we are again looking for a suitable tenant. Other ideas regarding the building have been suggested, and they range from operating a historical museum to a senior art gallery. Earlier this year the City was approached by the Salvation Army, who was looking for a location in Chanhassen to provide services to their clients. Staff toured the church with Salvation Army representatives, and they indicated that they would be interested in subleasing the property from the City. Staff and the Salvation Army have agreed on terms for a sublease agreement if this is something that the City Council wishes to proceed with. Representatives from the Salvation Army will be at Monday’s work session to discuss their operations if the council has any questions. Staff is looking for direction from the city council on how they wish to proceed with both these buildings. G:\Agenda Manager\5-22-06\C Lease Report.doc