CC_Minutes_2018_0326 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, March 26, 2018 Page 21 needs for Public Works and Parks and Rec storage. The shopping center will not solve all these issues,but this is an opportunity to acquire property next to the City Hall campus, so that a future Council could choose to ex- pand a Public Works facility on property already owned. In the short- term, the City is paying $19/sq foot and then $25/sq foot later in the lease. He believes those rates are excessive,but the Council had decided to make it work. In addition to the rents, it required approximately $600,000 in renovations. This is an opportunity to secure a piece of property that will fulfil a need for the License Center as well as a long-term opportunity for Public Works expansion. The FC has identified risks, and those are man- ageable risks. Going forward, this is a tremendous opportunity for the City. Councilmember Etten appreciated the comments on storage space, and that is something to consider. He would lean not storing things there as it would not be beneficial for the other tenants. He agreed the FC has identi- fied important concerns and the Council has considered a fair amount. Councilmember McGehee noted she agrees with the FC and disagreed with Council approval on this project. She does not think it is a good place to embark on building a Public Works building. Councilmember McGehee opined that it is inappropriate for the City to be a retail land- lord. The City will still have to remodel the site to improve the License Center. As for the rent, the City Council itself was involved as it began a purchase and then pulled out. When the rent was then renegotiated, it was higher than before. The property was not on the market so the City did not have to buy it right now. Storage could be arranged in the under- ground parking at City Hall. Storage should have been added to the six park buildings when they were built providing the opportunity to have the items stored on the recreation sites. Commissioner Murray asked how this $2.3 million will be financed. Mayor Roe stated that receipt of rent from current tenants as well as not having to pay rent could pay off what could potentially be a revenue bond. Additional revenue could be gained if additional tenants are found rather than using the space for storage. Commissioner Murray asked the Council to share the specific numbers. Mayor Roe responded that to the extent the City is compliant with the data practices act and confidentiality with the seller, the FC can see the infor- mation.