HomeMy WebLinkAbout1998-04-21 - AGENDA REPORTS - CITY HALL TI PROJECT (2)AGENDA REPORT
City Manager Approval
Item to be presented bye—'. Steve Stark
CONSENT CALENDAR
DATE: April 21, 1998
SUBJECT: CITY HALL TENANT IMPROVEMENT PROJECT
DEPARTMENT: Administrative Services
Approve the transfer of $40,000 from contingency funds to Property Management Building
Improvement Account # 2450-8640. Authorize the City Manager to award and sign all contract
documents subject to City Attorney approval and any change orders relating to this work as
necessary.
BACKGROUND
In June of 1998, the City Hall building will have approximately 1,500 square feet of space
available for lease. In order to secure new lease agreements and future revenue, the current
leasing market typically requires modifying space to meet new tenant needs. Typical
modifications include changes to the floor plan, new carpeting and paint. Any improvements
provided must be completed after entering the lease agreement, but prior to the tenant moving
in or making their first rental payment.
This request is in response to three separate proposals to lease all or a portion of vacant Suite
297, with each separate proposal requesting that tenant improvements be provided. This
request allows for tenant improvements to all 1,500 square feet currently available in Suite
297.
The expenditures made toward the completion of any tenant improvements provided are
regained through revenues received from the future rental payments, with the total expense
being amortized over the life of the lease.
ALTERNATIVE ACTIONS
Other action as determined by Council.
FISCAL IMPACT
Expenditure of $40,000 results in future revenue over next three to five years. Total revenue
APP'OU ► ���- .. �y ;.
CITY HALL TENANT IMPROVEMENT PROJECT
April 21, 1998 - Page 2
not yet determined, as lease negotiations are still in progress. However, the least amount of
revenue possible, and based on the least favorable of the various offers on the referenced space
currently in negotiations provide for future revenue of at least $91,800, due over the next three
years.
ATTACHMENTS
None
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