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 ...
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