Memorandum

City of Lawrence

TO:	Mayor and City Commission
FROM:	David L. Corliss,  Interim City Manager
Date:	March 21, 2006
RE:	Lease Extension – Riverfront Plaza

The City’s office space lease extension of approximately 6,200 square feet at the Riverfront Plaza for Neighborhood Resources/Fire Inspection/Computer Training office space expires at the end of March, 2006.  The City has negotiated an additional lease extension until December 31, 2007.    This timeframe works well with our current evaluation of City office space needs and the City’s review of options for the enhancement of public library services. (Under one or more library relocation scenarios the existing library facility may be vacated allowing for the building at 7^th and Vermont to be used for other purposes, perhaps including City office space needs.  Other scenarios do not move the library making City lease/acquisition of this space a future possibility as well.)  We will continue to study City office space needs including the viability of an option which houses the majority of development-related offices in a “one-stop” location.

The expiring Riverfront Plaza lease provided for monthly payments of $5,289.79, with an amount to be adjusted by the cpi (consumer price index) each year.  The lease extension provides for payments per month in the remainder of 2006 and 2007 at an amount of $5,650.00 per month.   The CPI information from the Bureau of Labor Statistics indicates that this increase over the two year period is appropriate (between 3 to 4% per year).