Bill Type and Number: Ordinance 2006-883

Sponsor: Council President at the request of the Mayor

Date of Introduction: August 8, 2006

Committee(s) of Reference: F, TEUS

Date of Analysis: August 11, 2006

Type of Action: Approving lease agreement

Bill Summary: The bill authorizes the Administration to enter into a lease with Property Management Support, Inc. for office space at 9680 Argyle Forest Boulevard, the Oakleaf Crossing Center, for use by the Tax Collector.

Background: The space is 5,000 square feet in size. Property Management Support will remodel the interior to meet the needs of the Tax Collector. Occupancy is planned for July 1, 2007. Completed, the office will have 13 teller stations and one balance windows. Cost of build-out is $284,610 with the City having the option of paying over the 10 year contract, at $8.29 per square foot for a total cost of $414,500, or as a lump sum within 30 days of occupancy. Monthly rent, not including the cost of improvements, will be $18.00 per foot plus a fixed common area maintenance cost (CAM) of $4.00. In the first year, this will be $9,166.67. In 2016-17, the last year of the contract, square footage floor rental will be $23.00 plus the $4 CAM. The contract offers a renew option of two 5 year periods as same terms and conditions.

Policy Impact Area: Tax Collector

Fiscal Impact: In 2007-2008, the lease and build-out costs will be $153,950.04 or $397,110 ($112,500 rent plus $284,610 remodeling costs)

Analyst: Weiss