Title
Eastland Commercial Lease
Action
Action:
A. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete a Master Lease Agreement with Crosland Southeast LLC, or their assigned entity, with a ten-year term for ground floor commercial space within the new mixed-use buildings as part of the Eastland Mall redevelopment,
B. Authorize the City Manager, or his designee, to renew the Master Lease Agreement for up to two, five-year terms, and
C. Adopt a budget ordinance appropriating $246,957.52 from Crosland Southeast LLC to the Neighborhood Development Grants Fund.
Body
Staff Resource(s):
Tracy Dodson, City Manager's Office
Todd DeLong, Economic Development
Explanation
* To support small, local, and/or minority owned businesses as part of the Eastland Mall redevelopment, the city will lease from Crosland Southeast LLC (Developer) up to 17,000 square feet of commercial space (seven bays/spaces) located on the ground floor of two new mixed-use buildings to be built by the Developer.
* The terms of the master lease between the city and Developer include the following:
* The Developer will provide a minimum of four parking spaces per 1,000 square feet,
* 10-year term with two options to extend by five years,
* Base rent of $39.70 per leasable square foot,
* An overall tenant allowance of $35 per square foot from the Developer to support build-out of the space for the subtenants, and
* Rent will be approximately $54,000 per month plus the pro rata share of taxes, insurance, and maintenance incurred during the term.
* The total cost of the lease is estimated to be $800,000 annually.
* The master lease agreement may be submitted to the Local Government Commission for review.
* The city will work in partnership with the Developer to finalize a set of criteria used to attract small business tenants for sub-leasing theses commercial spaces that:
* Activate the ground floor and support continuity across the site,
* Stre...
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