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x <br />400s <br />• <br />CITY COUNCIL WORK SESSION - <br />Topic Report: HeathQuest- 6701 Hwy 10 Lease <br />By: Sean M. Sullivan, Economic Development <br />Coordinator <br />Background: <br />Staff received a letter of intent (LOI) regarding the lease of 6701 Hwy 10 NW (former <br />NAU Building) by HealthQuest. The letter is attached for your review and it outlines the <br />terms and conditions of the proposed lease. Marty Fisher, acting as property manager of <br />the property on Highway 10, has brought this request to the City for review. K & K <br />Sharp currently leases the cold storage portion of the building on the North side and City <br />Council has already approved Youth First to lease a portion of the front of the building. <br />Leasing the remaining space to HealthQuest would completely lease the building. <br />There are some concerns regarding the parking needs for three potential businesses and <br />whether there is sufficient parking on the site. Currently the site has a paved parking lot,. <br />but the number of spaces required by the combined businesses has not been calculated. <br />Traffic generation to that site off of Hwy 10 could also be problematic depending on the <br />• number of trips generated per day. Staff believes that the terms of the leases should be <br />consistent from renter to renter and they must be market rate which has been closer to the <br />$12 /S.F. rate There will also need to be a review of the building and proposed uses for <br />compliance with state building and fire codes. <br />Action Statement: <br />Provide direction to staff to negotiate further with HealthQuest, to gather spedific <br />information that is needed to determine the viability of leasing the building to a health <br />club, or to terminate negotiations with HealthQuest. <br />• CCWS: 01/09/2007 <br />