Staff is seeking authorization to lease space within the facility located at 305 Fahm Street, as well as a right of first refusal to acquire the property in the future.  The facility is a large, two-story brick building containing approximately 49,000 square feet situated on 3.68 acres located with access to Fahm Street and Boundary Street.  The property is strategically located at the base of the emerging Canal District and its use completes a gap in City holdings, as the City currently owns existing properties to the east, south, and west. The property is owned by the Board of Regents of the University System of Georgia.  A letter of intent for the lease of 34,734 net rentable square feet of the building has been negotiated at a rate of $13.75 per square foot, on a modified net basis. The City will incur electric, security, and janitorial expenses, while the landlord will retain facility maintenance and repair responsibilities.  The facility will be used to complete the relocation of staff out of the Gamble and Broughton Municipal Buildings, which are in process of being sold.  The lease includes furnishings and the space is move-in ready, except the City will install additional electrical and data outlets, as well as a customer service counter. Further request authorization for the City Manager to approve lease related documents.

Approval