7.G.
City Council Meeting - FINAL
- Meeting Date:
- 11/19/2019
- From:
- Charity Lee, Real Estate Manager
Information
TITLE:
Consideration and Approval of Lease Amendment: Lease No: GS-09P-94446 for Building 3 of the United States Geological Survey (USGS) facility located at 2255 North Gemini Drive, Flagstaff, Arizona 86001 (Extend the lease term for two years).
STAFF RECOMMENDED ACTION:
Approve the Lease Amendment to extend the Lease through December 31, 2021.
Executive Summary:
The lease for Building 3 will be expiring December 31, 2019. GSA is requesting an extension of the lease until December 31, 2021.
Financial Impact:
In fiscal year 2019, the total Building 3 lease revenue totaled $332,082, with operating expenses totaling $88,532.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
ECONOMIC DEVELOPMENT
Grow and strengthen a more equitable and resilient economy
Grow and strengthen a more equitable and resilient economy
Has There Been Previous Council Decision on This:
Yes, the original Lease dates back to 1996, and eight amendments/extensions have been approved over the years. On August 9, 2016, the Lease was extended to December 31, 2019. Copies of the Lease and amendments thereto are on file with the City Clerk, and available for public inspection upon request.
Options and Alternatives:
Option 1: Approve the Amendment to the Lease to extend the lease term until December 31, 2021, all other terms of the Lease to remain the same.
Option 2: Deny the Amendment to extend the Lease which would cause the existing agreement to expire and result in the loss of USGS as tenants.
Option 2: Deny the Amendment to extend the Lease which would cause the existing agreement to expire and result in the loss of USGS as tenants.
Background and History:
The USGS Campus was established at its current location in 1963. Originally, it was the base of operations for scientists involved in astrogeology related to the Space Program. Since that time, the Campus has expanded to include scientists involved in geology, geography and water resources, as well as astrogeology. Today, the USGS Campus employs over 200 scientific personnel.
Key Considerations:
Building 3 has been leased by the United States Geological Survey (USGS) under the administration of the General Services Administration (GSA) since 1974. On May 25, 2016, the City of Flagstaff submitted a proposal to GSA for a new office building and warehouse at the USGS Campus. Negotiations for the new facility are still underway. If GSA approves the proposal, Building 3 would be demolished and this lease would no longer be applicable. GSA is requesting a short extension while negotiations for the new facility are still in progress.
Community Benefits and Considerations:
The Lease is adjusted annually according to the Consumer Price Index.
Community Involvement:
The USGS Campus has provided an array of economic benefits to the Flagstaff community. Currently, the facility employs over 200 people in the scientific sector, most of which are in high paying jobs. There is a strong connection between NAU and the USGS Campus that creates a synergy for the growth of both facilities.
Expanded Options and Alternatives:
Inform