The ground level of the Park 1 garage has six tenants that lease retail/office space. This space, located at 224 N. 29th Street, is currently occupied by Tami Kelling, DBA Downtown Subs. Tami's lease was approved by City Council on August 24th, 2009, for three years with two one-year options to renew. 

Ms. Kelling approached the Parking Division about expanding her leased space, in the form of a storage room.  The Parking Division completed construction of the storage area in March 2011.  This lease will supersede and revoke all previous agreement between the parties and all previous agreements between the parties are declared null and void and inapplicable.

The Council is being asked to approve a new lease agreement, including the extra square footage for the storage room, with Tami Kelling, DBA Downtown Subs, for three years with two one-year options to renew. The company will use this space as a retail sandwich restaurant.

Staff has analyzed the following alternatives: (1) approve the new lease with Tami Kelling, DBA Downtown Subs; (2) leave existing lease in place and not charge her for the storage room footage; or, (3) cancel all leases and seek a new tenant.

The revenues are projected in the FY 2011 budget. The retail space consists of 1,630 square feet; orginally 1500 square feet before construction of the storage room. Revenue for the first year will be $13,692.00 (1,630 square feet x $8.40). Revenue for the second and third year will be $13,855.00 (1630 square feet x $8.50). If tenant exercises the two one-year options to renew, the fourth and fifth year revenues will be $14,181.00 (1,630 square feet x $8.70).

Staff recommends Council approval of the new lease agreement in Park 1 Garage with Tami Kelling, DBA Downtown Subs.