City Council Minutes 2010 04 20 - Laserfiche WebLink

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City Council Meeting Minutes April 20, 2010 Page 11 of 12 Mayor Pro Tem Marsella asked if the $125,000 interior improvements are for the Main Street side only. Mr. Sholders explained it is for the Main and Pine Street sides. Mayor Sisk was supportive of the project and felt it would bring people downtown. He voiced his concern over the patio and requested it be well monitored. Mr. Donohoe stated he held a liquor license in Boulder for 16 years and never had a liquor violation. Mr. Sholders noted when they looked at the layout of the property; they chose the best location for the patio with respect to safety, security and marketing. MOTION: Councilor Sackett moved to approve Resolution No. 22, Series 2010, seconded by Councilor Dalton. Mayor Sisk offered a friendly amendment to authorize the Staff to draft a BAP guarantee of repayment should the business fail. Councilors Sackett and Dalton accepted the friendly amendment. VOTE: Roll call vote was taken. The motion passed by a vote of 7 -0. RESOLUTION No. 22, SERIES 2010 A RESOLUTION APPROVING A LEASE AGREEMENT FOR THE LEASE OF 637 FRONT STREET, CITY OF LOUISVILLE Mayor Sisk requested a Staff presentation. Economic Development Director Star reviewed the City Council's direction to the City Attorney and Economic Development Director to draft a lease with Brendan McManus of Lucky Pie Pizza for the Post Office Space. The lease was prepared by the City Attorney and reviewed by the proposed tenant, his attorney, and the City's real estate broker. The City will obtain rent of $58,190 per year, estimated sales tax of $34,289 for the first year, and the potential sales tax revenue from the second tenant. An incentive for building improvements investment is the provision of 16 months free rent ($77,586) and one year free on garden space ($600 value). In terms of costs, the City will be liable for real estate taxes, continued insurance costs, immediate costs to repair and /or replace any failed or deficient building systems. Immediate repairs to the building include replacing weather stripping; removal of the remaining asbestos ($11,200) and repairing a sink hole in the parking lot. The City will pay a broker's fee to Gibbons White of $14,548. The contract includes the tenant's personal guarantee to pay back the BAP should his business fail and a provision for the tenant to subdivide up to 2,000 SF. Chris Boston, Gibbons White Property Broker, expressed his thanks to the City Council for allowing them to list the property. He stated it was an interesting listing because of the City's desire to have the best use for the building, their concern for the impact on the City, neighboring tenants and the residents.