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Department Approval <br />�� ,�: �� <br />Item Description: <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 1/12/09 <br />Item No.: 12.c <br />City Manager Approval <br />� / <br />Approve a 4-Year Lease Extension for the Roseville License Center <br />BACKGROUND <br />In 1999, the Roseville City Council authorized a long-term lease to relocate the License Center at the <br />Lexington Shopping Center located immediately north of the City Hall campus. Previously the License <br />Center was located in the Fire Station # 1 building, but the success of the operation necessitated additional <br />space. The current lease expires on January 31, 2009. <br />Over the past few months, City Staff has been in negotiations with the shopping center to extend the lease <br />for an additional term. In entering into these negotiations, it was recognized that although it is in the City's <br />best long-term interest to have the License Center in a City-owned facility, it is unlikely that such a facility <br />will be available in the foreseeable future. At this time, there does not appear to be any community <br />momentum to finance additional City facilities. With the current economic climate and in recognition of <br />other high-priority needs, we do not expect this to change anytime soon. <br />The License Center currently occupies 3,332 square feet in the shopping center. Sased on transaction <br />volume projections, it is recommended that the License Center retain the same space. Representatives of <br />the Lexington Shopping Center have agreed to a 4-year lease extension which includes a zero dollar <br />increase in the first year of the lease. This is especially beneficial given the added pressure for the License <br />Center to continue generating surplus monies to offset increasing public safety and street maintenance <br />costs. The lease payments will carry an average increase of 5% per year thereafter. All other lease terms <br />will remain the same. <br />POLICY OBJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />The Agreement calls for lease amounts as follows: <br />❖ 2009 -$50,400 (same amount as paid in 2008) <br />❖ 2010 - $57,600 <br />❖ 2011 - $59,400 <br />❖ 2012 - $61,200 <br />Page 1 of 2 <br />