9.B.
City Council Meeting - DRAFT
- Meeting Date:
- 10/18/2016
- From:
- Charity Lee, Real Estate Manager
Information
TITLE:
Consideration and Approval of Contract: USGS facility Building #6, General Services Administration Lease No 5AZ0152.
RECOMMENDED ACTION:
Accept the lease agreement by the General Services Administration to enter into a new lease for 20 years (10 years firm term) for Building #6 at the USGS campus. Lease term commencing on August 1st, 2017.
Executive Summary:
June 30, 2016 the City received a request for Lease Proposal( RLP 5AZ0152) from the United States General Services Administration (GSA) regarding building 6. The lease on building 6 is scheduled to expire. GSA requested a new lease related to building 6, which would extend the term to 20 years, 10 years firm. Staff submitted the proposal on August 5th, 2016 to GSA.
On August 16, 2016 the City of Flagstaff approved Resolution No. 2016-29, a resolution ratifying the submittal of a Request for Lease Proposal (RLP 5AZ0152) from the United States General Services Administration (GSA) for building 6 of the United States Geological Campus, located at 2400 North Gemini Dr.
GSA has accepted the City of Flagstaff's proposal for the new lease agreement and has submitted the final lease documents for approval by Council.
On August 16, 2016 the City of Flagstaff approved Resolution No. 2016-29, a resolution ratifying the submittal of a Request for Lease Proposal (RLP 5AZ0152) from the United States General Services Administration (GSA) for building 6 of the United States Geological Campus, located at 2400 North Gemini Dr.
GSA has accepted the City of Flagstaff's proposal for the new lease agreement and has submitted the final lease documents for approval by Council.
Financial Impact:
Lease Term 20 years, 10 years firm
Shell Rent $74,868.00
Operating Costs $218,823.75
Total Annual Rent $293,691.75
The City of Flagstaff has committed to replacing the carpet, fixing the HVAC system and providing interior painting to the facility. There are reserve funds set aside for ongoing maintenance and capital improvements for building 6. The City will use the reserve funds for the updating and maintenance.
Shell Rent $74,868.00
Operating Costs $218,823.75
Total Annual Rent $293,691.75
The City of Flagstaff has committed to replacing the carpet, fixing the HVAC system and providing interior painting to the facility. There are reserve funds set aside for ongoing maintenance and capital improvements for building 6. The City will use the reserve funds for the updating and maintenance.
Connection to Council Goal and/or Regional Plan:
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City
Has There Been Previous Council Decision on This:
Yes, On August 16th, Council approved Resolution No. 2016-29: A resolution ratifying the submittal of a Request for Lease Proposal (RLP 5AZ0152) from the United States General Services Administration (GSA) for building 6 of the United States Geological Campus located at 2400 North Gemini Dr.
Options and Alternatives:
Option 1: Approve the lease with GSA and continue to rent the building 6 to the United States Geological Services for up to 20 years,10 years firm.
Option 2: Do not approve the lease agreement and the current lease for building 6 would expire and USGS would vacate building 6.
Option 2: Do not approve the lease agreement and the current lease for building 6 would expire and USGS would vacate building 6.
Community Involvement:
Inform
Attachments
- USGS Lease
- document 3518
- Facility Security Level II
- GSA form 3517B
- GSA Form 3518
- Level II Security
- Seismic Form B