Department of Finance
Reference: Lease with Colorado Thoroughbred Breeders Association
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Maria Ostrom, Director of Finance
Prepared By: Nicole Samson, Senior Management Analyst
Date Prepared: January 15, 2021
PURPOSE
Staff is requesting City Council approve the lease with the Colorado Thoroughbred Breeders Association for the 2021 calendar year. This organization has been leasing space at Historic City Hall, a City-owned building located at 22 South 4th Avenue, since 2012 and would like to continue to lease there. The lease will end on December 31, 2021 and the rental rate is $5.71 a square foot.
STRATEGIC FOCUS AREA
Strong Regional Relationships and Partnerships
BACKGROUND
The City will be performing an assessment of the City-owned buildings and land this year to determine the highest and best use for the properties. Historic City Hall will be included in this assessment. While the assessment is happening, the Council has decided to continue to lease space to organizations. The City Council discussed the leases at Historic City Hall in an executive session on November 10, 2020.
The City owns Historic City Hall and has been leasing space in this building to organizations since 2011 as well housing City staff at the facility. Currently, there are six nonprofit organizations with offices in Historic City Hall. Four of these leases were approved in January: Almost Home, Brighton Housing Authority, American Highland Cattle Association, and Rocky Mountain Quarter Horse Association. The Economic Development Corporation and the Brighton History Museum are located in the facility too, as well as Facilities Maintenance equipment and Police records.
Incorporated in 1997, the Colorado Thoroughbred Breeders Association is a nonprofit membership organization that supports the breeding, raising, racing, and marketing of Thoroughbred horses in Colorado.
FINANCIAL IMPACT
Leasing the office space at Historic City Hall will help defray the cost of utilities and general maintenance of the building and surrounding property. Currently, the cost to keep Historic City Hall operating is $21.65 a square foot. Market rental rates in this same area for office and retail space are between $12 a square foot and $20 a square foot. Historic City Hall’s high cost is due to recent capital improvements financed through Certificates of Participation. The debt service for these capital improvements will mature in 2026.
STAFF RECOMMENDATION
Approve the proposed ordinance because leasing space at Historic City Hall while the City performs a facility and property assessment provides reasonably priced office space for local nonprofit organizations that serve residents and helps to offset the operating costs to maintain the facility.
OPTIONS FOR COUNCIL CONSIDERATION
1. Approve the proposed ordinance as presented.
2. Do not approve the ordinance.
ATTACHMENTS
• Ordinance approving the lease agreement
• Proposed lease agreement