Agenda - 11-07-2001-8q - Laserfiche WebLink

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Lesaatl space et 110 5. CM1UMn Street 1) Ae you know, HRR is housed In leased space x1170 S.Churton Street. The lease for Met space expires on December 1, 2003. When the lease expires, we would not enficipate recommentling it for renewal for a number of reasons, inGUtling, but not limitetl to the following: a) First, the HUman Rights/COmmiasion for Women function that was odginally movetl to Mis location found the space suitable for [heir operation. However, wdh the sign~wnt growth of the tlepartmenl over fha pas[ few years and [he evolu[bn of their function, Me Facility serves netther [he department nor their dients atlegualely. b) Further, the OPO Family GOUnseling Center Mat occupies Me upper goor of the builtling has also outgrown the apace end is seeking alternative rental space. Tom MayneM, OPC Executive Director advises me that they will secure and pay for the leasetl space on their own. c) Vet another issue associated wtth this leasetl premises is that Dad of the approxlmstely $63,000 annual lease payment for this location indudas the Landlord's responsibility to pay costs of utilities. Fcurtimes tludnq the past year, services have intermp[ed due to his non-payment of bills. Although we have counseletl Me landlprtl numerous times regarding the unacceptabillN of this type of behavior, our efiode have been only marginally successful. The latest episotle of water service intenuptbn ocarred less than 30 days ago. For these antl other reasons, I believe A Dtudent to not renew the lease at its expiretion. Adtlitional Fi¢eel Consldera[lons 1) By the and of the lease period Por 110 5. Chudon Street (Dec 1 2003), Me annual lease amount will be in excess of $65,000. It may be worth remintling curselves that the revenue derived from the rented space at 501 W. Franklin St. serves to support debt service payments for Me entire facility. AlMOUgh we would not charge ren[(orthe space occupietl by HRR, the eignificent expentliture reduction would lessen the impact of any lost revenue. 2) In atldigon, you may recall that Me Skills Development Center (SDC)fnencing hatl two components. One portion of the loan for the SDC side was deemed public purpose and therefore borrowed e[ a lower rate, while the loan on Me 501 podion of [he bulltling canted a hgM1er rere beceuae tts pdmary ocwpants were not public pupose. If Me eoartl chooses to allow the Viei[Or'e Bureau antl HRR M locate in this buiMing, that publiGpdvate balance will swing to Me public side antl I am advised by [he Finance Director Met refinancing the loan at a lower rete can ^cdrq Mereby saving addfiional money over the remaining Ilfe of Me loan.