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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: November 21, 2017 |
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Staff Contact: |
Diane Stoddard, Assistant City Manager |
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Recommendations/Options/Action Requested: |
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Authorize the City Manager to sign a lease with Amarr Garage Door Group/Entrematic for temporary storage space within the former Farmland bag warehouse, located at 2425 E. 15th Street. |
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Executive Summary: |
Amarr Garage Door Group/Entrematic, is one of the City’s largest employers and has been located in the East Hills Business Park for a number of years. The temporary storage is needed due to a manufacturing line upgrade. The company has explored other options for temporary storage, but has desired storage close to its existing facility. The City owns a warehouse building on the north side of the VenturePark property, off of 15th Street. The warehouse once housed fertilizer bags awaiting distribution. The City has been utilizing a portion for the building for its own storage uses, but there is significant unused space within the building in order to cover Amarr’s temporary storage needs. Amarr is seeking to place up to ten (10) storage trailers within the building.
Staff has drafted a lease which provides for a term from December 1- July 31, 2018 with an option to extend monthly for three additional months if needed. The lease calls for Amarr to compensate the City at an amount of $75 per month per trailer stored. This rate is based on roughly half of the lower end of the industrial storage lease rates provided by Colliers, which reflect industrial space that is heated. The bag warehouse is not heated and is in relatively poor condition. The storage and use of the building will be at Amarr’s risk.
Staff recommends approval of the lease. This is an opportunity to assist Amarr during a temporary period while they add production capacity to their operation.
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Strategic Plan Critical Success Factor |
Economic Growth and Security |
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Fiscal Impact (Amount/Source): |
Currently, the City does not receive any revenue related to the bag warehouse. This would provide the City up to $750 monthly for this temporary lease. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |