Focus Area: Quality of Life
Staff Contact: Mike Sirna
Subject: Consideration of lease agreement between Karbank Holdings LLC and City of Olathe for relocation of city departments.
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Consideration of lease agreement between Karbank Holdings LLC and City of Olathe for relocation of city departments.
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Summary:
Due to the disposition of property, housing multiple city departments at 135 S Kansas Ave., a 3-year lease for sufficient space (approx. 32k sq/ft.) inside the city was identified. To make way for downtown redevelopment and the renovation of city buildings, a search was undertaken to identify a site capable of relocating staff from multiple spaces. Primarily the building at 135 S Kansas Ave housing IT, code enforcement and PMO. Additional staff from City Hall, Housing and OCC will be relocated on a permanent or temporary basis.
Following a search of multiple locations, the site at the 119th St Tech Park was identified as having adequate space as well as a favorable lease agreement. The location is also in move-in condition with furniture and other amenities requiring far less reconfiguration than an empty space.
Members of the Chamber of Commerce evaluated the lease agreement and found the terms to be favorable to other comparable lease agreements recently executed. Staff recommends approving this agreement for a 3 year term with 2 one-year optional extensions.
Multiple locations were evaluated with the property at the 119th St. Tech Park found to be the best combination of price, available space, configuration and location within the city.
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Financial Impact:
Estimated expenditure for October 2024 through September 2027 is $1.9m and will be funded from the Facility Renovations and Improvements Project, 6-C-038-24.
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Action Needed:
Approval of lease agreement with Karbank Holdings LLC. And approval of the Facilities Renovation project.
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Attachment(s):
Olathe Lease 10-1-24