by Katherine Preble
An amended lease agreement for a long-time proposed YMCA/St. Joseph Community Center was revisited at the St. Joseph City Council at its Oct. 20 meeting.
Tentatively approved in a lease agreement by the city council and the St. Cloud YMCA in 2023, the amended lease agreement for the project remains an active item on the council’s agenda. Details are being worked out so as to retain a $4-million state grant for the project.
The YMCA/Community Center is expected to be built next to the St. Joseph Government Center, located at 75 Callaway St.
YMCA is an acronym for Young Men’s Christian Association. It’s a diverse and inclusive organization that welcomes people from all faiths to enjoy its programs and activities. There are many branches of YMCA worldwide, including the one in St. Cloud.
A community center was first proposed for St. Joseph in 2014. In 2021, the project gained momentum thanks to the $4-million allocation in a bonding bill given for the proposed center by the Minnesota Management and Budget Office. After two years of detailed discussions and planning, the lease agreement between the city and the St. Cloud YMCA was signed in 2023.
More recently, the contracted design and architecture firm from the project’s inception, HMA, along with the YMCA and the city attorney’s office, recommended to reduce the initial lease term to 15 years, with an extension clause set for an additional 15 years. That adjustment was proposed to align with legislative guidelines and specific stakeholder requirements. The city has accepted that and other minor proposed changes to the agreement.
Why a lease shift?
St. Joseph City Administrator David Murphy explained the primary reason for the shift in the lease terms from 20 to 15 years.
“The state guidelines for the $4-million grant identify a useful life of recreational buildings of 35 years,” he said. “According to their guidelines the lease cannot extend beyond the estimated useful life of the building. The 20-year lease and 20-year extension provision go to 40 years and could jeopardize the grant. Therefore we amended the lease to 15 years with a 15-year renewal option which is under the 35-year maximum.”
Murphy told the Newsleaders once those issues are approved by YMCA and the St. Joseph City Council, the agreement will be officially amended and in full force.
Terms of the lease
Under terms of the partnership, St. Joseph will retain ownership of the community center. The YMCA, as the operational partner, will lease the facility and manage all aspects of its day-to-day operations.
The lease terms are structured as follows:
The YMCA will give a nominal $1 per lease year and will cover utility costs. The city will be responsible for infrastructure and all charges, fees and services in regards to water, sanitary sewer, refuse collection and street lighting.
The YMCA is currently exempt from real-estate and personal-property taxes. However, should the facility become subject to those taxes in the future, it will assume responsibility for those obligations.
The YMCA, at its sole expense, will be responsible for routine maintenance that includes all repairs to the building’s interior and water systems and ensures all building systems are kept in good operational condition. Major capital repairs and installations, however, will be done by the city. Both parties have committed to establishing a major-repairs reserve fund of $250,000, with each party contributing $125,000.
Regarding branding, recognition and philanthropic opportunities, the YMCA and the city will both be recognized as the primary entities on the building’s exterior. The city continues to reserve the right to include Jacob Wetterling on the building’s exterior signage in honor of his memory.
Donations
The agreement also empowers the city to solicit and accept private donations. That was also addressed as a consent-agenda item by the city council, determining that all gifts, donations and contributions of real or personal property can be accepted only if approved by two-thirds of the members of the city council. Donations to the community center received through Sept. 30 of this year total $785,243.
For additional information, visit cityofstjoseph.com.
St. Joseph City Administrator David Murphy
