Prospect to Lease a Portion of the Old Municipal Center

In Mid-November the City's Economic Dev./Marketing Manager was contacted by a real estate broker regarding a prospect interested in leasing a portion of the Old Municipal Center.  The prospect, Connections Church, is looking to locate and finalize an interim meeting location in the next 60 days or so.  On November 19th, Gary Dehn, the broker, and Ray Fritz, the lead pastor, toured the center.  The church is proposing to lease the main level of the Old Municipal Center, which encompasses 6,100 sq. ft. of space at a proposed lease rate of $6.40/ sq. ft.  They would not use areas used by the fire department and the lower level of the building.  That lease rate would generate about $39,000 per of revenue for the City or about $3,250 per month.  The Church has provided a letter of interest in the City's property, referencing the proposed lease rate and move-in date (early February of 2011).  The Church would be responsible for its portion of the utility costs and for any leasehold improvements it needs.  I have provided copies of the floor plans to the broker and the prospect.   

Instruct City Staff to move forward with drafting a proposed lease agreement with Connections Church.

Provide input to City Staff regarding the potential lease of the Old Municipal Center.