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Resolution Authorizing a New Lease for the Second Floor of 115 N. 3rd Street to Avcon Engineers & Planners, Inc.
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Department: |
Economic Development |
Meeting Date: |
7/15/2025 |
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Contact Name: |
Aubrey Parsley |
Public Hearing: |
No |
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Contact Phone: |
910-200-8382 |
Advertising Date/Advertised By: |
6/13/2025 |
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Attachments: |
Attachment #1: Resolution |
PURPOSE:
The purpose of this resolution is to authorize the City Manager to lease approximately 1,279 square feet of space on the second (2nd) floor of 115 N. 3rd Street.
BACKGROUND:
Attached for your consideration is a resolution authorizing the City Manager to execute a new lease
agreement regarding the second (2nd) floor of the 115 N. 3rd Street building with Avcon Engineers & Planners, Inc. The premises included in the lease consist of 1,279 square feet of space. The space is currently vacant.
The high-level terms of the new full-service lease include a five (5) year and one (1) month initial term, one option for renewal for three (3) years, with an initial annual rent of $40,743, escalating 3% each year thereafter.
The City acquired 115 N. 3rd Street prior to the acquisition of the 929 N. Front Street (“Skyline Center”) to accommodate its future office space needs. The property at 115 N. 3rd Street is currently listed for lease, and it will ultimately be listed for sale. This proposed lease will serve to financially stabilize the property by off-setting its carrying costs for the duration of the time the City holds it prior to its disposition, and will also enhance the value the City receives for resale.
budget
BUDGET IMPACT:
The lease will generate approximately $33,900 in FY26.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of this resolution is recommended.