Title
Public Hearing and Action on Resolution 18-074, a Resolution of Intent to Lease to Precision Health Technologies, LLC the following described property in the Research and Technology Center, 811 32nd Ave., Brookings, SD.
Body
Summary:
The City is proposing to lease space in the Research and Technology Center located at 811 32nd Avenue to Precision Health Technologies, LLC.
Background:
Precision Health Technologies, LLC is proposing to lease 860 square feet of laboratory space. The lease will be on a month-to-month basis for a period not to exceed December 31, 2020. The lease rate will start at $7.50 per square foot for the first year and increase by $0.50 each year thereafter. Precision Health Technologies, LLC is a start-up company with headquarters in the Research Park. The company is seeking wet lab space in the Brookings area to further develop its technologies. The Research and Technology Center site is planned for redevelopment, however, the timing of such redevelopment is contingent upon the build-out of the Brookings Marketplace and market conditions. The lease termination date is consistent with other leases for the facility.
The following statutes provide guidance for municipalities leasing property:
9-12-5.1. Powers - Lease of property - Terms and conditions. Every municipality may lease its municipally-owned property. Any such leases shall be for a term and upon the conditions provided by resolution of the governing body.
9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines.
A notice of public hearing was published once, ten days prior to the public hearing.
Approval of the Resolution of Intent will authorize the City Manager to execute a Lease Agreement with Precision Health Technologies, LLC according to the terms and conditions authorized by the City Council.
Fiscal Impact:
Approval of the lease will provide $537.50 in revenue per month or $6,450 annually.
Recommendation
Recommendation:
Staff recommends approval.
Body2
Attachments:
Resolution
Lease Agreement
Notice of Public Hearing