Title
Approval and Authorization to Execute Two Lease Amendments to the Original Lease (B)
This item is a request to Approve and Authorize the Execution of two Lease Amendments with Teledyne FLIR Detection, Inc., a Delaware Corporation.
Explanation
Over the past three years, since the Prioria bankruptcy, the Catalyst Building has been jointly occupied by three separate tenants: the City of Gainesville, University of Florida (FIBER) program and Altavian, a local drone company, which was bought by Teledyne FLIR Detection, Inc. The latter two tenants executed three year leases for 7,500 square feet and 10,000 square feet respectively (in August/September, 2018), and they expire on August 31, 2021.
Terms of the Lease include the following:
Two Year Base Lease Term (for the entire building - 22,000 square feet)
Priced at $14.00 / SF with a 3% Annual Increase
Two Options to Renew for a Two Year Term Each at Fair Market Value
No Tenant Improvement Allowance and No Rent Abatement
City will provide expanded parking spaces for a total of 100 spaces (paved and striped)
Tenant pays Property Tax (Estimated at $1,350 per month) and Sales Tax (6.5%)
Strategic Connection
Goal 4: Resilient Local Economy...increase the number of successful and sustainable, small and locally owned businesses.
Fiscal Note
The total revenue anticipated over the two year term of the lease is $688,440 including estimated property and sales tax. The increase of revenue, due to the entire building being leased at a higher rate and being placed back on the tax rolls, will fund the cost of the parking improvements.
Recommendation
The City Commission: 1) approve the two Lease Amendments with Teledyne FLIR Detection, Inc. for the space available at 606 Southeast Depot Avenue; and 2) authorize the City Manager, or designee, to execute the two Lease Amendments with Teledyne FLIR Detection, Inc., subject to review and approval of the City Attorney’s Office as to form and legality.