Title
Power District Catalyst Project Lease Term Modifications (B)
This is a request for City Commission approval to modify a Power District Catalyst Project Lease. **ESTIMATED STAFF PRESENTATION 20 MINUTES**
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 22,000 square foot building with loading docks and associated property for commercial, office, warehouse and/or light industrial uses in the Power District. 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. Based on these criteria, the City Commission requested staff move forward with negotiations with Prioria Robotics to occupy the project site. Negotiations were successful, and the City reached an agreement with Prioria to enter into a long-term lease for the project site. Building improvements required by the terms of the lease were completed in early February 2013 and Prioria moved into the building on February 7, 2013 on the lease commencement date.
As negotiated, the lease with Prioria included: a single tenant lease; a seven year lease term; $13.75/ft2 - $16.42/ft2 triple net rental rate (Prioria is responsible for paying sales tax on the rental rate, property taxes, insurance, maintenance and utilities separately); and right of first refusal for purchase of the site. In 2013, the lease was amende...
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