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→Background
New rent costs:
New rent costs:
Enter into a five year lease, beginning January 1st, 2016 or there about, to occupy the entire building.
Here are the key details
1. Monthly lease of a flat $7,300 per month for the entire building including the two parking spaces in the rear of the building. approximately 11,148 sqft at 7.858 per square foot. This is in line with the market rates, the rate is a melding of our existing rates + a market rate for the new space. This $300-$1900 less per month than the first proposal we received.
2. 5 year term with the option to renew at the end of the terms for an additional 5 years. I know long term commitments are a concern but in order to lock in a more attractive rate the term needs to be longer. A longer term also protects us from large rate hikes, and allows us to plan longer term. It would be possible to sublet this space if necessary. We would still be responsible for the rent until we acquired a replacement tenant. Not ideal solution, but always an option if the flexibility would be needed.
3. 3% annual rental increases
4. Tax responsibilities would stay the same except the base year would be reset to 2015, so no significant payment in the near future. Our current agreement stipulates that we pay a percentage of the increase in property taxes every year based on a set base year. I was able to reset this to 2015 so this will remove our obligation for the next year at least.
5. Any tax saving we would receive from non profit status would be passed to us.
6. The space will come to us empty and all items will be removed before occupancy.
7. We would receive control of all outdoor parking.
As part of this, obviously something would have to go into the newly available shop space. This discussion among the membership will be important, but not part of this vote.
As part of this, obviously something would have to go into the newly available shop space. This discussion among the membership will be important, but not part of this vote.