CC MEETING: April 21, 2020
DATE: April 15, 2020
TO: Erin Rinehart, City Manager
FROM: Ravi Shah, Director of Development Services
Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute A Lease Agreement With 3-Nations Brewing, LLC For The Use Of City-Owned Property At 1003 Main Street.
Body
BACKGROUND:
The City of Carrollton owns the property at 1003 Main Street, which has about 1,000 square feet of interior floor space. The property was previously leased to TPM Outfitters, Inc., whose lease expired on September 1, 2019. The space is currently vacant and in disrepair.
In August 2019, 3-Nations Brewing LLC submitted a proposal with lease terms to relocate their administrative offices to this space. They indicated interest in leasing the space for 3-years at a rent rate of $300 per month. On August 26, 2019, the TOD Sub-Committee directed staff to offer the space for a period of one (1) year with an option to renew for a second year at the same lease rate. 3-Nations rejected the offer as they felt the lease terms outweighed the cost required to remodel the building’s interior lease space.
In February 2020, staff was approached again by 3-Nations about leasing the space. They requested a 3-year lease for $300 per month and agreed to pay for all basic interior finish-out elements to make the space occupiable.
On March 19, 2020, the TOD Sub-Committee discussed the proposal and directed staff to offer 3-Nations Brewing a triple-net, 2-year lease agreement with a $300 per month rent structure. The space will be used only for administrative offices and the tenant improvements and finish-out for the space will be the responsibility of the tenant. 3-Nations has agreed to the terms recommended by the TOD Sub-Committee.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approval of the attached resolution authorizing the City Manager to negotiate and execute a lease agreement with 3-Nations Brewing, LLC for the use of City-owned property at 1003 Main Street.