2003 AGN JAN 21 I12 - Laserfiche WebLink

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Item #12 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF JANUARY 21, 2003 TO: Honorable Mayor and Council Membeerrrss FROM: Al Holliman, Assistant City Manager(X�/ / SUBJECT: City Hall Remodel and Relocation of Chamber of Commerce DATE: January 14, 2003 BACKGROUND On January 7, 2003 the City Council approved a contract for an architect to prepare plans for a remodel of City Hall. While not discussed during the January 7, 2003 meeting, part of the remodel process and allocation of space involves relocating the Chamber of Commerce. DISCUSSION/ ANALYSIS On February 10, 1961 the Chamber of Commerce gave the City of Colton $30,000 for the purpose of constructing or acquiring an office building for them. As a result, in lieu of actually vesting a separate building with the Chamber, the City constructed the current office portion occupied by the Chamber, affixed to City Hall of, approximately 2000 square feet at a nominal annual lease of $1 per year. For all practical purposes, this is a lifetime lease. In prior discussions with the Chamber regarding relocating them, they have made it very clear that any relocation must meet with their approval and must involve either another acceptable lifetime lease or deeding of an office building with a value today commensurate with the value of $30,000 41 years ago. Staff estimates that current value to be at least $300,000. The relocation is necessary, in particular, to improve and expand the Police Department's present facility. New construction costs for police facilities are at least $250 per foot. It would cost the City $500,000 (2,000 square feet x $250) to newly build square footage equivalent to the space presently occupied by the Chamber. The Chamber is willing to move and occupy the City owned building at 655 North LaCadena, presently housing the City's Engineering Department. The Chamber is willing to either have the property deeded to them or enter into another long- term lease. They also believe $75,000 in relocation costs/assistance is warranted based on the condition of the building. However, staff has told the Chamber that no more than $50,000 can be expended from the preliminary City hall remodel project budget. A joint -use parking agreement will need to be executed for the parking lot at the rear of the building. The Chamber is also willing to cohabitate with the Engineering Department for a few transition months (the period of time when the existing Chamber site is being renovated and the new Engineering space at City Hall is not yet ready for occupancy). Depending upon whether the Chamber owns the new site or leases it and the timing thereof, it may be necessary for the City to actually lease back a portion of the building at 655 North LaCadena. Following is a recap of the two alternatives for the City Council to consider: Alternative 1 A. Deed the building at 655 North LaCadena to the Chamber. B. Pay $50,000 to the Chamber in one-time relocation costs. C. Advantages 1. Reduces City's liability 2. Eliminates City's responsibility for related utility expenses and ongoing maintenance.