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CC_Minutes_2016_11-14
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CC_Minutes_2016_11-14
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Regular City Council Meeting <br />Monday, November 14, 2016 <br />Page 17 <br /> <br />holder. Therefore, Mr. Miller stated he would strongly suggest that the City <br />Council consider something slightly different than a one-year lease. <br /> <br />Adding to that timing scenario, Councilmember Laliberte noted that everyone was <br />of mind in expressing dissatisfaction with the current condition of the License <br />Center. Therefore, Councilmember Laliberte opined that to just renew the lease <br />and stay in the tight confines in the unwelcoming conditions at the Center was as <br />equally undesirable. Councilmember Laliberte suggested that whether or not the <br />city was amenable to staying in those same circumstances or what improvements <br />it would consider with a short-term lease renewal also needed to be part of this <br />conversation. <br /> <br />Regarding the lease term, Councilmember Willmus stated he didn’t have strong <br />feelings, but if the city was serious about property acquisition, the lease term <br />would become moot at some point. Councilmember Willmus stated that he hoped <br />that wouldn’t be as long as three years from now. <br /> <br />Councilmember McGehee stated her agreement, but noted the need to balance the <br />additional space needed at the current leased space and potential acquisition of a <br />new site. Councilmember McGehee suggested that staff advise the City Council <br />about what a two-year versus a three-year lease would lease and costs entailed. <br /> <br />Finance Director Miller noted the good relationship between the city and building <br />owners at the current leased site, with that relationship continuing over the last <br />sixteen years. Mr. Miller clarified that while the relationship remained good be- <br />tween the parties and they continued to be willing to work with the city on a <br />short-term solution, at the end of the day the property owner was also a business <br />person, and if the city pursues extending their space further south in the facility, it <br />would displace the current tenant, with the city potentially liable for those reloca- <br />tion costs for that tenant. Mr. Miller also noted there is room on the property to <br />expand the facility north, with the city currently occupying the end cap of the fa- <br />cility. However, Mr. Miller also noted that the potential expansion on the north <br />end had been marketed by the property owner for over fifteen years, without seri- <br />ous interest shown. If the city was to consider an expansion to the north, Mr. Mil- <br />ler opined that he doubted the property owner would be interested in doing so for <br />a two-year lease, since it would not provide them much incentive to speculate as <br />to whether it could market the space to future tenants after the city’s two-year <br />lease terminated and they moved to another facility. Therefore, Mr. Miller noted <br />that the longer lease term, the more options and leverage staff could negotiate. <br /> <br />Finance Director Miller recommended a minimum three year lease with an option <br />to renew for an additional two years. Mr. Miller opined that this provided the city <br />with a short-term solution, while providing significant motivation to get a long- <br />term solution done within three years, with the two year option available to buy <br />more time if and as needed. <br /> <br />
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