The Police Department's Crime Prevention Center (CPC) has been located at the Rimrock Mall for the past five (5) years under a cost free lease.  The Mall will displace the CPC by July 1 in order to lease that space to a new tenant.  Rather than relocate to another Mall space and being forced to move again when the Mall needs that space for paying tenants, the Police Department decided to look elsewhere for office space.  The Park I parking garage, located at 2912 3rd Avenue North, has ground floor office space.  There are three vacant spaces and the largest one, formerly occupied by Associated Employers of Montana, has been the most difficult to lease.  The CPC would like to secure a long term commitment to occupy that space but would pay no rent.  Because it is long term (5 yrs) and will potentially reduce the amount of Parking Fund revenue, the City Council is being asked to approve the agreement.  The City would not normally execute a lease with itself, so the proposed lease agreement is primarily an expression of the Council's intention to allow the CPC's long term occupancy in the Park I garage retail/office space.

The City Council may:

• Approve the agrement.  The CPC volunteers will be able to prepare the space for occupancy by July 1.
• Disapprove the agreement.  The CPC will have to secure other lease space for little or no rent and no later than July 1.
• Modify the terms and approve the agreement.  The Council could shorten the term or charge rent to the Police Department.  The FY 12 Police Department budget does not include rent for the CPC.

The Police Department will pay utilities, for custodial supplies and cleaning and for minor maintenance items.  These are funds that are already budgeted because they are expenses that the CPC has in its current location.  The Police Department will lease ten (10) parking spaces in the garage for the paid staff and some volunteers.  The Parking Fund will forego potential income for the office space lease.  This space is approximately 4,100 square feet and if it could be rented for $8/ft., the Parking Fund will forego $32,800 of income per year.  However, all of the garage office space has been difficult to lease and the smaller offices should be easier to fill than this area. 

Staff recommends that the City Council approve the lease agreement for the Crime Prevention Center to occupy approximately 4,100 sq. ft. of office space at the Park I garage for a minimum term of five (5) years and $0 rent.