Department of Finance
Reference: Resolution Approving Tenant Leases at Historic City Hall
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Finance Director
Date Prepared: December 6, 2022
PURPOSE
The City currently leases office space in the Historic City Hall, located at 22 South 4th Avenue, to 6 different non-profit organizations. Staff is requesting that the lease agreements with the current tenants be renewed for the 2023 calendar year.
STRATEGIC FOCUS AREA
Financially Responsible
Strong Regional Relationships and Partnerships
BACKGROUND
The City owns Historic City Hall, located at 22 South 4th Street, and has been leasing space in this building to nonprofit organizations since 2011. There are currently six nonprofit organizations using space at Historic City Hall, including Almost Home, American Highland Cattle Association, Rocky Mountain Quarter Horse Association, Colorado Horse Council, and Colorado Thoroughbred Breeders.
The lease agreements for 2023 include increases to rental rates, though rental rates remain well below the market value of comparable square footage. The lease agreements also contain language for a 90 day notice to vacate, allowing the City and the tenants flexibility. The leases have historically been brought to council annually. The Resolution allows for the City to renew the leases, and if there are no changes, next year these may be renewed administratively.
FINANCIAL IMPACT
These leases will generate revenue totalling $86,968 during 2023. This revenue helps to defray the cost of utilities and general maintenance of the building. These leases also provide reasonably priced office space for local nonprofit organizations that serve the Brighton community.
STAFF RECOMMENDATION
Staff is recommending approval of the attached resolution allowing the City to execute leases with the nonprofit organizations for 2023.
OPTIONS FOR COUNCIL CONSIDERATION
* Ap...
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