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'��r ��. ,��L:��-�,-.�� .= { r L � _��._•��y 4�'4L.;ti�4 - �4�� ��_ � Memo To: Neal Beets, City Manager From: Chris Miller, Finance Director Date: July 14,2005 Re: Discussion on ti�e Expansion of the License Center Background The License Center continues to experience steady growth in its overall operations. While the number of transactions overall have leveled off, the issuance of dealership vehicle licenses and passports has increased substantially. The increase in these types of transactions, especially passports, has had a dramatic effect on the manner in which existing leased space is being used. Despite a reco�ifiguratioi� of existing space in early 2003, added dealership and passport activity has increasingly constricted employee workspace and customer waiting areas. In addition, the lack of storage space for supplies and materials that need to be in a secure area llas necessitated the use of aisles and walkways. This has created less-than-ideal, and somewhat hazardous, working conditions. Existing Lease Space Currently, the License Center leases 2,315 square feet of space in the Lexington Shopping Center. Since moving to the current location in 2000, the License Center has added passport services and has provided vehicle licensing services to an additional five (5) dealershipslauto auction houses — both of which has placed added demands on existing leased space. The License Center has an existing lease that runs through February, 2006. The lease is very favorable with terms that are approximately 15-20% below similar leasing sites. The License Center has a 3-year renewable option that could extend the lease through February 2009 — again at terms favorable to til�e current marketplace. Overview of Future Space Needs Over the next five years, we expect to realize decreasing transaction levels for vehicle tab renewals. However, these types of transactions require relatively small employee working and custa�er areas as contrasted with dealership vehicle licensing and passport services. As noted above, these particular transaction types are expected to continue increasing. The net result is that the deinand for enlpla yee working and customer service space is expected to steadily increase over the next five years. It is anticipated that an additional 1,000-1,500 square feet will be needed to accommodate expected growth.