Memorandum
City of Lawrence
City Manager’s Office
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TO: |
Dave Corliss, City Manager
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FROM: |
Cynthia Boecker, Assistant City Manager
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CC: |
Diane Stoddard, Assistant City Manager Scott McCullough, Director of Planning and Development Services Toni Wheeler, Director of Legal Services
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DATE: |
August 21, 2008
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RE: |
Proposed Lease – One Riverfront Plaza
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Background
The City of Lawrence currently leases approximately 6,500 square feet at One Riverfront Plaza, occupied by development services, fire inspections and the city training room. The original lease for the Riverfront space expired October 1, 2005 and was extended twice to December 31, 2007. Various options regarding this space were negotiated late last year, including an option to purchase space on the west side of the building for city departments. Concurrent with negotiations relating to the Riverfront lease, staff worked 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. Negotiations did not result in a long term commitment.
As a result in this change in available space, a Request for Proposals for office space was issued last spring. Proposals were received from Grubb & Ellis (proposing a site owned by Allen Press in the 1000 block of New Hampshire) and Gene Fritzel Construction (proposing space at 645-647 Massachusetts). The broker representing the owners of One Riverfront Plaza also submitted information relating to on-going use of the east lower level of the building. The attached matrix summarizes those responses.
Proposed Lease
Following analysis of the proposals, tours of the proposed sites and other needs within the City, it was determined that, at this time, the City should continue utilization of the east lower level of One Riverfront Plaza. A draft lease has been developed. Earlier this month, Director of Legal Services Toni Wheeler and I met with Doug Brown and Dan Simons to discuss lease terms.
Attached is a proposed three-year lease commencing on September 1, 2008, which:
· Sets a monthly lease amount for the first year at $7.20 per square foot. The lease amount increases to $10.43 in years two and three. The 2007 lease rate was $10.45 per square foot.
· Establishes monthly additional rent of $3.00 per square foot for the estimated building insurance premium, common area maintenance and real estate taxes. The City had not previously paid additional rent.
· Allows the space to be used for City office or not-for-profit use by the City of Lawrence.
Continuing use of the Riverfront space provides the opportunity move the Development Services Division of the Planning Department to City Hall and the Public Works Administration and Engineering functions to the Riverfront facility. Staff will evaluate this option to determine whether it is appropriate to recommend to allow for the implementation of the one-stop shop concept for the Planning and Development Services Department.
Recommendation/Request
Staff recommends the lease agreement be placed on the August 26 City Commission Consent agenda requesting authorization for the City Manager to execute the lease, if appropriate.
Attachments: