Title
Catalyst Project - Tenant Selection (NB)
Explanation
In November 2011, the City received a letter of intent from Prioria Robotics expressing interest in the Catalyst Project warehouse site to house its operations. In response to this request, in December 2011, the Catalyst Project site was, per statutory requirement, advertised publicly to invite all interested parties to apply for the lease and/or purchase of an approximately 20,000 square foot building with loading docks and associated property for commercial, office, warehouse and/or light industrial uses in the Power District. The property is proposed to be renovated and funded by the borrowing of funds. Staff will identify details of the funding structure as the project progresses and will bring this information to the board at a later date. The closing date for candidates' application submittal was January 25, 2012. The City received one proposal, from Prioria Robotics. Evaluation of the candidate submittal was based on the following factors/criteria: intended use for the site and its suitability for furthering Power District redevelopment goals and the candidate's legal and financial ability to enter into a long term lease or purchase agreement. Staff reviewed the proposal and based on these criteria recommends moving forward with negotiations with Prioria Robotics to occupy the project site.
Next steps are to enter into negotiations with Prioria Robotics to determine business terms, included but not limited in this will be lease amount, tenant responsibilities and tenant build out. Staff anticipates lease negotiations will be complete by the end of March. If negotiations with Prioria are not successful, it may result in delays to the project schedule or discontinuation of negotiations.
Lease terms will have to be satisfactory to the CRA, City, GRU, and Prioria Robotics. A number of key issues will need to be resolved during lease negotiations. These issues include but are not limited to: amount of rent, term of lease, option to purchase, contingency on zoning change, and the requested special use of Depot Park by Prioria Robotics. The CRA and/or the City will in all likelihood seek to borrow funds to renovate the building and site for the change in use. Additionally, GRU must obtain fair value for the property in accordance with its bond covenants. Redevelopment of this site will serve as a catalyst for additional development in the Power District. Prioria Robotics expects to make a strategic investment, over the next five years to grow its business by establishing long-term facilities in Gainesville's Power District to house its rapidly growing workforce. The opportunity, following planned renovations, to relocate to the Power District into an existing vacant warehouse space will enable Prioria to remain in Gainesville.
Fiscal Note
None at this time. Please note that the CRA has already budgeted funds for the design of Core and Shell renovations for this project.
Recommendations
Executive Director to the City Commission: 1) Approve ranking; and 2) authorize staff to negotiate a lease and other documents, subject to approval by the City Attorney as to form and legality.