7.H.
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-03408 for Buildings 4 and 5 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 buildings 4 and 5 is expiring December 31, 2019. GSA is requesting an extension of the Lease until December 31, 2021.
Financial Impact:
In the fiscal year 2019, Building 4 and 5 lease revenue equaled $354,886 with operating expenses totaling $238,707.
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, in December 2014 Council approved a Lease for a five-year term.
Options and Alternatives:
Option 1: Approve the Amendment to the Lease to extend the term to December 31, 2021, under the same terms and conditions of the existing Lease.
Option 2: Do not approve which would cause the existing Lease to expire and result in the loss of USGS as tenants.
Option 2: Do not approve which would cause the existing Lease 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:
The City and GSA are currently in negotiations for a new build to suit which would replace buildings 4 and 5. These buildings were constructed in the 1970s and have extended their useful life. If the new build to suit is approved these buildings will be demolished and replaced.
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