File #: 3038    Version: 1 Name: SMD Lease Amend-Gravley Center
Type: Resolution Status: Passed
File created: 11/30/2016 In control: City Council
On agenda: 12/6/2016 Final action: 12/6/2016
Title: Consider A Resolution Authorizing The City Manager To Negotiate And Execute An Amended Lease Agreement With Social Media Delivered For The City-Owned Gravley Center at 1111 West Belt Line Road, Suites 100 & 200.
Attachments: 1. Site Location Map-1111 W Belt Line Road, 2. RESO-Gravley SMD 2nd Fl-Auth Lease Amend
CC MEETING: December 6, 2016

DATE: November 29, 2016

TO: Leonard Martin, City Manager

FROM: Andrea Roy, Economic Development Manager

Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute An Amended Lease Agreement With Social Media Delivered For The City-Owned Gravley Center at 1111 West Belt Line Road, Suites 100 & 200.

Body
BACKGROUND:
Since August 2014, Social Media Delivered (SMD) has leased space in Downtown Carrollton; first leasing one of the live-work units in The Union, then expanding into 5,864 square feet on the first floor of the Gravley Center. The company continues to flourish and has added team members in Canada, the United Kingdom and Germany. Due to the rapid growth of the company, SMD has requested to amend their current lease to include the additional 3,300 square feet of unoccupied space on the second floor of the Gravley Center. The company wishes to finish-out the space with four meeting rooms, a large event space, a workout room, a restroom with shower, and a kitchenette. This expansion will allow the company to hire more employees, bring in additional interns, host new clients, and present larger events in partnership with the City.

The current lease will be amended to reflect the following proposed new/expanded lease terms:

Suite 100: 5,864 sq. ft. (Current)
Suite 200: 3,300 sq. ft. (Additional)
9,164 sq. ft. total lease space

Base Rental Rate:
Months 0-5: $1,250 per month
Months 6-13: $4,398.00 per month (based on 5,864 square feet of rentable space at $9.00 per foot per year)
Months 14-15: $4,398 .00 per month (based on 9,164 square feet of rentable space) 2 months free rent on the additional 3,300 square feet to allow for construction of tenant improvements.
Months 16-85: $6,873 per month ($82,476/year based on 9,164 sq. ft. of rentable space at $9.00 per square foot per year).

Monthly Service Discount: $1,250

The monthly service discount is based on SMD providing:
(A) bi-m...

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