HomeMy WebLinkAboutCRA-R-06-0013 Cover Memo•
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SOUTHEAST OVERTOWN/PARK WEST
AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES
INTER -OFFICE MEMORANDUM
To: Chairman Johnny L. Winton
and Members of the CRA Board
SEOPW & Omni Board of Directors Meeting
March 27, 2006
Item # 2
Date. March 17, 2006 File 06-00274
Subject: Authorization to Renew CRA
Office Space Lease
From: Frank K. Rollason References
Executive Director
Enclosures Supporting Documentation;
Legislation
RECOMMENDATION:
It is recommended that the Board of Directors of both the Southeast Overtown/Park West (SEOPW) and Omni
Community Redevelopment Agencies (CRAs) approve and adopt the attached Joint Resolution authorizing the
Executive Director to enter into a one year lease renewal agreement under the provision of Article XXiII of the
current lease with The Citadel Arena Corporation for CRA office space beginning September 1, 2006 through
August 30, 2007 at the stipulated rate of $13,968.52 per month/$167,622.24 per year ($16.76 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); this renewal
would be the second of the three options available, 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, 2006.
The intent of bunging this before the Board at this early date is to obtain authorization to exercise the option if it
is the decision of the Board to retain the current office space located within the SEOPW CRA Area. If it is the
Board's intent not to renew, we need to begin developing alternatives at this point in time.
FUNDING SOURCE: $167,740.04 from SEOPW/Omni TIF General Operating Account No.
689004,550010.6.620 entitled Rent/Building.
FKR/eh