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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/05/2013 - RESOLUTION 2013-004 AUTHORIZING THE LEASE OF SPACEDATE: February 5, 2013 STAFF: Jill Stilwell Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 23 SUBJECT Resolution 2013-004 Authorizing the Lease of Space at the City-owned Carnegie Building Located at 200 Mathews Street to Beet Street, Inc., for up to Two Years. EXECUTIVE SUMMARY The historic Carnegie Building at 200 Mathews Street in Fort Collins has been vacated by the Fort Collins Museum. Council has supported repurposing this building as a community creative center. Leasing a portion of the building to Beet Street and its Arts Incubator of the Rockies professional development program helps achieve the transition to a creative center. This Resolution approves a lease of specific areas of the building to Beet Street for up to two years. BACKGROUND / DISCUSSION The Carnegie Building at 200 Mathews Street has served the public for more than 100 years. In October 2011, the Fort Collins Museum closed at this location to move to the new Fort Collins Museum of Discovery, which opened in November 2012. At the April 27, 2010 City Council Work Session, Council supported the repurposing of this building as a community creative center, once the Museum relocated to its new facility (Attachment 1). The Cultural Plan also recommended developing a community creative center. Extensive outreach results showed that most people wanted this historic treasure to remain open and accessible and were supportive of the creative center concept. The creative center concept includes the Arts Incubator of the Rockies (AIR), a program developed by Beet Street, as the primary program and Beet Street the primary tenant of the building. Cultural Services and Beet Street secured a $100,000 National Endowment for the Arts Our Town grant to design AIR and develop space use plans for the new functions of the Carnegie Building. Beet Street has completed its design phase for AIR and will begin offering classes in 2013. The space use plan shows appropriate placement of AIR and Beet Street based on the overall usage of the building and into the future (floor plans provided in Attachment 2). Improvements and historic preservation to the building will be made over time, as funding through grants and other sources becomes available. As part of its lease Beet Street would be allowed to rent the AIR classroom space to other users in accordance with policies and a fee schedule approved by the City. Other spaces in the building will also be rentable by the public, including exhibition and multi-use spaces. These rentals will be handled by the City’s Cultural Services Department. Other lower level spaces are anticipated for additional workshop spaces, and the opportunity to host FCPAN as another tenant starting in mid-2013. In all, the building will be open to the public and serve as a resource to the community. The proposed lease would allow Beet Street to occupy 3,339 square feet of the nearly 13,000 square foot building, consisting of the mezzanine office level of the building and the classroom space on the ground level for AIR. It would also have the ability to rent other spaces in the building on a short-term basis, with priority scheduling. The rent will be below market value at $500 per month, as AIR will be providing an important public benefit in the form of professional development to the creative sector. This benefit is described as a strategic need in the City’s Cultural Plan, the Economic Health Strategic Plan, and in Plan Fort Collins. The creative center was also approved through 2013-2014 Budgeting for Outcomes process. The AIR program and the other uses of the building will support the Uniquely Fort Collins Cluster, and serve as a catalyst in creating a robust arts and culture community that has both economic and quality of life impacts. FINANCIAL / ECONOMIC IMPACTS The Lease will generate at least $5,500 per year in the Cultural Services Fund and its revenue will be used to support Cultural Services programming at the 200 Mathews Street building. February 5, 2013 -2- ITEM 23 STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION The Cultural Resources Board has been involved in the repurposing of the Carnegie building into a creative center and is supportive of this Lease to Beet Street in fulfillment of that overall vision (Attachment 3). PUBLIC OUTREACH Extensive public outreach was done to determine the future use of the Carnegie building. An online survey generated 1,600 responses; an open house was held; and several potential partner organizations were interviewed and brought into the process. At the April 27, 2010 City Council Work Session, staff recommended and Council supported this building being repurposed as a community creative center once the Museum relocated. The results from this outreach were utilized to work with architects through the National Endowment for the Arts Our Town grant to develop a space use plan for the building. The public was informed of the space use plan at three events in the summer of 2012. ATTACHMENTS 1. Work Session Summary, April 27, 2010 2. Floor Plans showing space use plan for 200 Mathews Street 3. Cultural Resources Board minutes, December 20, 2012 4. Location Map RESOLUTION 2013-004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF SPACE AT THE CITY-OWNED CARNEGIE BUILDING LOCATED AT 200 MATHEWS STREET TO BEET STREET, INC. FOR UP TO TWO YEARS WHEREAS, the City is the owner of the property located at 200 Mathews Street, also known as the Carnegie Building (the “Property”); and WHEREAS, the Property previously housed the Fort Collins Museum, which closed in October, 2011 in preparation for moving to the new Museum of Discovery facility; and WHEREAS, at the April 27, 2010 work session, the City Council supported a proposal to use the Property as a facility that supports the artistic endeavors of the community by providing office, gallery and classroom space and professional development programs for individuals and organizations involved in arts and culture (a “Community Creative Center”); and WHEREAS, the Community Creative Center would include a program developed by Beet Street, Inc. (“Beet Street”) called the Arts Incubator of the Rockies (AIR); and WHEREAS, the City wishes to lease to Beet Street, for up to two years, 3,339 square feet of the Property, consisting of office space on the mezzanine level of the building, and a classroom space on the ground floor level, to use for AIR (the “Premises”); and WHEREAS, Beet Street would also have the right as part of its tenancy to use common areas of the Property and to rent out the classroom space to others in accordance with policies approved by the City; and WHEREAS, Beet Street would also have a right to priority scheduling in other spaces in the building that would be made available for public use by rent or reservation through the City; and WHEREAS, Beet Street would pay rent in the amount of $500 per month, in addition to providing a public benefit to the citizens of the City in the form of assistance in professional development to the creative sector; and WHEREAS, Section 23-114(a) of the City Code authorizes the City Council to lease, for a definite term of two years or less, any and all interests in real property owned in the name of the City, provided that City Council first finds, by resolution, that the lease is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that leasing the Premises to Beet Street under the terms listed above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute a negotiated lease agreement for the Premises, consistent with the terms of this Resolution, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the description of the Premises, as long as such changes do not materially increase the size or change the character of the Premises. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th day of February, A.D. 2013. Mayor ATTEST: City Clerk