CITY COMMISSION AGENDA ITEM

Department:	Planning & Development Services		Commission Meeting Date: 9-5-2017
Staff Contact:	Scott McCullough, Kurt Schroeder
Recommendations/Options/Action Requested:
Authorize the City Manager to execute a one-year extension to the City’s commercial lease agreement for 6,486 square feet of office space in the east wing lower level of One Riverfront Plaza (Suite 110), which is currently occupied by the Development Services Division of the Planning & Development Services Department.
Executive Summary:		The Development Services Division of Planning and Development Services has leased space known as One Riverfront Plaza, Suite 110, in the east lower level of the Riverfront Plaza building since late 2000.  In 2008, the Riverfront Plaza building was sold to the current building owner, and a new commercial lease agreement between the City and new building owner was executed and effective as of September 1, 2008.  The 2008 lease agreement has been amended and extended several times, most recently in July 2016 to extend the lease expiration date from August 31, 2016 until August 31, 2017.  The proposed lease amendment extends the lease until August 31, 2018, with no increase in annual base rent or monthly payment installments. The lease extension will provide the City additional time and flexibility to explore and consider options for merging the Planning and Development Services Divisions of the Planning & Development Services Department into a joint “one-stop shop” facility.  One option includes potential lease of the top floor tenant space in the west wing of the Riverfront Plaza building within the next year.  Per terms of the proposed lease amendment, if the City leases space in the west wing of the Riverfront Plaza building for a one-stop shop facility (and other possible City functions) prior to August 31, 2018, Development Services may vacate its currently leased east wing space at 1 Riverfront Plaza, Suite 110, without penalty of any kind (with 30 days’ prior notice to the Lessor). Staff recommends that the City Commission authorize the City Manager to execute the proposed commercial lease amendment to extend the lease expiration date until August 31, 2018.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The fiscal impact to the City is $67,778.70 annually, which is the current annual base rent and is included in the 2017 and 2018 budgets.
Attachments:		Proposed Fourth Amendment to Commercial Lease Agreement

Reviewed By: (for CMO use only)

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