Consideration and Approval to Amend Lease : No. GS-09B-94446 Building 3 of the USGS Facility at 2255 North Gemini Drive, Flagstaff, AZ. 86001 (Extend lease term three years)

Building 3 has been leased by United States Geological Survey under the administration of the General Services Administration (GSA) since 1974.   The lease for Building 3 will be expiring  December 31, 2016. At this time GSA would like to extend the existing lease agreement until December 31, 2019.  The City of Flagstaff submitted a proposal to GSA on May 25, 2016 for a build to suit and new lease of USGS Campus buildings.  If GSA approves the proposal, Building 3 would be demolished and the Building 3 lease would no longer be applicable.  GSA desires a short term lease at this time to explore the build to suit proposal.

The existing terms of the lease would stay the same with the exception of extending the lease until December 31, 2019. There is no additional cost to the City of Flagstaff.

Based on fiscal year ending 6/30/2015

Annual Lease Revenue for Building 3:                           $334,002
Annual Operating Costs                                                 $133,785

Any excess (revenue over expenditures) is set aside in the reserve account for future repairs and improvements to the facility.


 

None

No

Option 1: Approve the Amendment to the lease to extend the lease term which will continue the lease until December 31, 2019. By extending the lease the City continues to lease the building to USGS under the current terms and conditions of the lease.

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.

Inform