Memorandum

City of Lawrence

City Manager’s Office

TO:	Dave Corliss, City Manager
FROM:	Cynthia Boecker, Assistant City Manager
CC:	Diane Stoddard, Assistant City Manager Scott McCullough, Director of Planning and Development Services Toni Wheeler, Director of Legal Services Gerald Cooley, City Attorney Ed Mullins, Director of Finance
DATE:	December 13, 2007
RE:	Update on Riverfront Mall Lease

The 2008 Capital Improvement budget includes $1 million to debt finance the acquisition, lease and/or renovation of space at One Riverfront Plaza for city offices.

The City of Lawrence currently leases approximately 6,500 square feet of space at the Riverfront building for neighborhood resources, fire inspections and the city training room.  The original lease for this space expired October 1, 2005 and has been extended twice to December 31, 2007.  City Attorney Gerald Cooley is currently in the process of negotiations with the owner regarding the city’s continued lease of space in that facility, with the option of a future purchase of space to be used by city departments.  

The City also leases approximately 6,000 square feet at 947 New Hampshire for Parks and Recreation and Human Relations and 7,600 square feet for the Municipal Court.  These leases expire in 2012. 

Concurrent with negotiations relating to the Riverfront lease, staff has been working to gather data to evaluate alternative sites, including other city facilities, for these functions and the long term costs/benefits relating to lease, purchase or other alternatives. 

Action Requested/Recommended

This is presented for Commission information at this time.  Negotiation of the Riverfront lease and analysis of purchase options are ongoing.  Commission action on a lease (and/or acquisition) agreement is anticipated in January.