8.I.
City Council Meeting - FINAL
- Meeting Date:
- 08/26/2024
- Co-Submitter:
- Bryce Doty
- From:
- Carmen Pryer, Real Estate Specialist
TITLE:
Consideration and Approval of Contract Addendum: Third Addendum to the Lease of the Hopi Building at Heritage Square for Office Space
STAFF RECOMMENDED ACTION:
Approve Third Addendum, to provide office space for City staff (ParkFlag and the Beautification, Arts and Sciences Program).
Executive Summary:
The City of Flagstaff is currently leasing office space at 6 E. Aspen Avenue for ParkFlag and the Beautification, Arts and Science program. City Council is being asked to approve the Third Addendum, which extends the lease extension date from October 31, 2024 through October 31, 2025.
The City is sub-leasing part of the space to the Downtown Business Alliance (DBA). The landlord and addendum refers to the City's Beautification, Arts and Sciences program as a sublease but it is part of the City.
The City is sub-leasing part of the space to the Downtown Business Alliance (DBA). The landlord and addendum refers to the City's Beautification, Arts and Sciences program as a sublease but it is part of the City.
Financial Impact:
The City's monthly rent is set at $5,847.12 for annual cost of $70,165.44. ParkFlag has a budget of $24,800 in account 061-07-231-0890-6-4241 and Beautification, Arts and Sciences has a budget of $30,000 in account 051-07-211-0820-5-4241. The DBA pays the City a total of $15,600 annually for its sublease.
Policy Impact:
None
Connection to PBB, Carbon Neutrality Plan, 10-Year Housing Plan & Regional Plan:
Provide Exceptional Service: Provide employees tools, training and support.
Has There Been Previous Council Decision on This:
Consideration and approval of Lease and Sub-lease with the Flagstaff Metropolitan Planning Organization and with the Downtown Business Alliance on November 19, 2019. City Council ratified the Second Addendum on June 20, 2023. A Third Addendum, to provide office space for City Staff (ParkFlag and the Beautification, Arts and Sciences Program). was approved on June 20, 2023. However, after the City Council meeting, the Hopi Tribe Economic Development Corporation did not execute this document so it did not become effective.
Background and History:
The City has a lease for use of the Hopi Building (6 E Aspen Ave, Ste 200) on the western boundary of Heritage Square. That lease has been in place for three years. The City, specifically ParkFlag, has been the lessee with the Downtown Business Alliance (DBA) and MetroPlan as sublessees.
Notification of intent to renew the lease is required by October 31st of this year. Just prior to that notification, MetroPlan announced they would not be continuing as a sublessee. This created a situation where the decision to renew was required without all the uses fully determined, however there were no alternate areas with proper size available in the ParkFlag district at that time.
Lessee and Subleases:
City of Flagstaff--ParkFlag (1 Manager, 1 lead and 4 Aides if we ever get back to fully staffed)
City of Flagstaff--Beautification, Arts and Science Program (1 Manager and 2 Admin1strators) - has assumed the space vacated by Metroplan at the Hopi Building
Approved Sublease--Downtown Business Alliance
Notification of intent to renew the lease is required by October 31st of this year. Just prior to that notification, MetroPlan announced they would not be continuing as a sublessee. This created a situation where the decision to renew was required without all the uses fully determined, however there were no alternate areas with proper size available in the ParkFlag district at that time.
Lessee and Subleases:
City of Flagstaff--ParkFlag (1 Manager, 1 lead and 4 Aides if we ever get back to fully staffed)
City of Flagstaff--Beautification, Arts and Science Program (1 Manager and 2 Admin1strators) - has assumed the space vacated by Metroplan at the Hopi Building
Approved Sublease--Downtown Business Alliance
Key Considerations:
- Lends efficient operations for customer service and enforcement patrols;
- Compliant with the Americans with Disabilities Act requirements;
- Size and configuration supports the program and the co-location with the Downtown Business Alliance and the Arts and Beautification;
- Offers safe entry and exit with adequate lighting for night shift security;
- Reduces or is equal to overall cost as compared to past parking office.