Title
Approving a resolution entering into a lease agreement for 103 N. Railroad Avenue, also known as Wordyisms.
Summary
The purpose of this item is to authorize the city manager to enter into a lease of the building located at 103 N. Railroad Avenue, currently occupied by Wordyisms.
The proposed term is 5 one-year leases that are automatically renewed each year. The rate is $1.25 / square feet based on 4,390 rentable square feet, which is to be paid annually.
Consideration for tenant improvements is made with free rent for August and September of this year to allow for these improvements to occur in order to occupy the space in October.
Included as a provision is a first right of refusal should the owner elect to sell the property in the future helping to ensure the opportunity for Main Street to extend eastward in the future.
Staff has engaged a firm to perform a test fit for the facility, which has been completed. Design development documents for the tenant improvements are being prepared in order to seek bids in June. A budget amendment will be requested on May 14, 2019 using unallocated funds in the FY 2019 budget for approximately $300,000. Unlike the existing Development Services Center configuration, some room for additional staff will be accounted.
Prior City Council Action
None.
Deadline for City Council Action
Action is requested on April 23, 2019 in order to maintain the project schedule.
Funding Expected: Revenue __ Expenditure _x_ N/A __
Budgeted Item: Yes __ No _x_ (Will be an FY 20 expenditure) N/A __
Amount: Annual Lease payments of $65,850.00, plus operating expenses; Tenant Improvements approximately $300,000
1295 Form Required? Yes _x_ No __
Legal Review Required: N/A __ Required _x_ Date Completed: March 28, 2019
Supporting documents attached:
Resolution
Proposed Lease Agreement
Exhibit B
Recommended Action
Approve resolution authorizing the city manager to execute the lease agreement.