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Home My WebLink About09441RESOLUTION NO. 9441 A RESOLUTION COMMITTING THE CITY OF PUEBLO TO LEASE THE COMMERCIAL SPACE LOCATED AT THE SANTA FE CROSSING PROJECT NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO THAT: SECTION 1. The City of Pueblo does hereby commit to lease all of the approximately 11,000 square feet of commercial space at the Santa Fe Crossing project. SECTION 2. It is understood by the City of Pueblo that such lease will only be in an amount necessary to provide adequate cash flow for the total Santa Fe Crossing project but not to exceed $7 per square foot per year. INTRODUCED: N2VPmher 26, 2001 LO." ON APPROVED: CITY COUNCIL ATTESTED BY: TY CLERK Background Paper for Proposed RESOLUTION AGENDA ITEM it 18 DATE: November 26, 2001 DEPARTMENT: CITY MANAGER'S OFFICE LEE R. EVETT, CITY MANAGER DAVE GALLI, DEPUTY CITY MANAGER TITLE A RESOLUTION COMMITTING THE CITY OF PUEBLO TO LEASE THE COMMERCIAL SPACE LOCATED AT THE SANTA FE CROSSING PROJECT. ISSUE The private investors involved in the Santa Fe Crossing project need commitments to ensure an adequate cash flow of the project. Leases on all or a portion of the approximately 11,000 square feet of commercial space in the project may be necessary in order to provide the needed cash flow. The City of Pueblo is being asked to lease at the rate of $7 per square foot for the 11,000 square feet of commercial space. The City may use the leased space as follows: (a) The City could actually move into the space and use if for our needs and pay the $7 per square foot figure, or a lesser figure which would provide the cash flow needed; or (b) The City could sublease the space to some other organization. RECOMMENDATION Approval of the Resolution. FINANCIAL IMPACT There is approximately 11,000 square feet of commercial space in the project at a lease rate of $7 per square foot. If the City must fund the entire amount of the available commercial space, the financial impact would be approximately $77,000 a year to the City. There should be no financial expense to the City until 2003.