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Staff believes there is an opportunity to preserve a historic building and to add a unique building to the lease <br />market. The City has been presented a fair offer to lease the Old Town Hall from the Small Town Boutique. In <br />order to move to the next step the EDA and City Council must consider taking the initiative to renovate Old Town <br />Hall and to put the building back into service. If the EDA is comfortable recommending moving forward with the <br />renovation staff would ask the EDA to make a formal recommendation to obtain quotes to complete the <br />Climatization and Pre -Occupancy Upgrade outlined in the RCP 17B report. <br />The Old Town Hall has an estimated 778 SF of leasable space. It includes a bathroom, main hall and cloak room. <br />Staff has consulted with a local real estate agent and market rate rent for this building would be in the 12-18 / SF <br />range with the tenant responsible for the utilities / snowplowing and the City responsible for the property taxes. The <br />offer by Small Town Boutique is market rate as outlined below: <br />Year 1 - $10,200 (13.11 / SF) <br />Year 2 - $15,000 ($19.28 / SF) <br />Year 3 - $15,000 ($19.28 / SF) <br />This business has an online presence and moving to a brick and mortar store certainly has risk. Staff has put together <br />a projected lease summary (see attached) and identified the break-even point if renovation expenses are accurate. <br />This preliminary analysis shows a breakeven point, from a new City investment perspective, of five years. Getting <br />quotes from contractors can confirm the renovation numbers and verify the analysis. <br />Next Steps <br />The EDA will need to review the information presented and ultimately come to a recommendation on how to <br />proceed in relation to the Renovation and / or lease of the Old Town Hall. <br />Alternatives: <br />Renovation <br />1. EDA recommend to City Council to obtain quotes to complete the full renovation and to utilize EDA / HRA <br />funds to complete the renovation. <br />2. EDA recommend to the City Council to complete the Climatization work to preserve the Old Town Hall and <br />improve its appearance. <br />3. Something Else <br />Lease <br />1. EDA recommend to the City Council the Staff enter into exclusive negotiations with Small Town Boutique. <br />2. EDA recommend to the City Council that the City complete the renovation and to put on market after <br />renovation is complete <br />3. Something else. <br />Funding Source: <br />Funding for the renovation could be provided by the City EDA Fund Balance or potentially the Anoka County HRA <br />Fund. <br />Recommendation: <br />Renovation <br />Staff recommends that the EDA recommend to City Council to obtain quotes to complete the full renovation and to <br />utilize EDA / HRA funds to complete the renovation. <br />Lease <br />Staff recommends EDA recommend to the City Council the Staff enter into exclusive negotiations with Small Town <br />Boutique. <br />Action: <br />