Laserfiche WebLink
2009 — 2018 Capital Improvement Plan <br />Item. License Center Faci 1 010ty <br />Division.- Finance <br />Year.- 2010 Cost.- $,6000 OOO <br />Status.- $,200,,000 available (projected) <br />Description: <br />The City currently leases 3,330 square feet of store space in the Lexington Shopping Center, <br />immediately North of Fire Station 41. While the City is enjoying below-market lease terms for <br />2008,, beginning in 2009 the lease agreement will require a significant increase in rent. <br />Beginning in 200 9,, the City expects to pay $,57,000 annually, with $,3,000 annual increases <br />thereafter. Given these amounts,, it is arguably in the City's best interest to either acquire or <br />construct a city-owned facility (perhaps a multi-purpose facility), to house the License Center. <br />T, , 4-: -r. .4-: . - <br />Financing for the new facility (less existing cash reserves), is expected to require an annual debt <br />service payment of $,45,000 over a I0 -year period beginning in 2011. However, current lease <br />payments are expected to be $,63,000 during that same year. With a new facility, the City would <br />forgo these payments and realize an annual savings of approximately $,18,000. <br />Funding for a new License Center facility will come from agent fees derived from the issuance <br />of State licenses and passports. <br />CaDital Costs <br />Funding Sources <br />ILMU--f <br />All <br />Al U X X <br />Ild <br />I., U X %Y <br />1.dUX"t_1.lP <br />Deputy Registrar Flees <br />Cash reserves <br />Total Sources <br />Expenditures <br />Capital construction <br />Total Expenditures <br />Oi)erations and Maintenance Costs <br />WZ1.ing Sources <br />Depuly Registrar Flees <br />Total Sources <br />Expenditures <br />Other <br />Total Expenditures <br />* * No oplerational costs are shown. With a new facility, the City expects to realize oplerational savings and <br />those savings are noted above. <br />M15 <br />