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HomeMy WebLinkAboutCRA-R-05-0008 COVER MEMOCRA Board of Directors Meeting January 31, 2005 Item #10 SOUTHEAST OVERTOWN/PARK WEST AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM Chairman Johnny L. Winton Date: January 21, 2005 File: 04-01394 and Members of the CRA Board C Subject; Authorization to Renew CRA Office Space Lease From: Frank . Rollason References: Executive Director Enclosures: Resolution; Supporting Documentation RECOMMENDATION: It is recommended that the attached Joint Resolution of both the Southeast Overtown/Park West (SEOPW) and Omni Community Redevelopment Agencies (CRAs) be approved and adopted by the Boards of Directors authorizing the Executive Director to enter into a one year renewal lease agreement under the provision of Article XXIII of the current lease with The Citadel Arena Corporation for CRA office space beginning September 1, 2005 through August 30, 2006 at the stipulated rate of $13,561.67 per month/$162,740.04 per year ($16.27 per square foot which includes electric utility and 16 dedicated and secured parking spaces). JUSTIFICATION: On July 15, 2003, the CRA Board of Directors authorized the execution of a lease agreement between the CRA and the Citadel Arena Corporation for the lease of approximately 10,000 square feet of office space for an initial term of two years at a cost of $15.80 per square foot ($158,000 per year) with options to renew for three additional 1-year periods (SEOPW Resolution No. R-03- 60 and Omni Resolution No. R-03-42). The renewal option stipulates an increase in rent of 3%; all other provisions of the lease agreement remain in effect with no change. The renewal option stipulates that the CRA must notify the landlord of its intent to renew within thirty (30) days before the expiration of the initial term or subsequent renewal which would mean that we would have to issue notification no later than July 31, 2005. The intent of bringing this before the Board at this early date is to obtain authorization to exercise the renewal option if it is the decision of the Board to retain the current office space located within the CRA. If it is the Board's intent not to renew, we need to begin developing alternatives at this point. FUNDING SOURCE: $162,740.04 from SEOPWIOmni General Operating Account Code No. 689004.550010.6.620. FKRIeh