Memorandum

City of Lawrence

City Attorney’s Office

TO:	David L. Corliss, City Manager
FROM:	Toni R. Wheeler, City Attorney
C: DATE:	Diane Stoddard and Casey Toomay, Assistant City Managers, Tarik Khatib, Police Chief, and Vicki Stanwix, Court Administrator July 28, 2014
RE:	Municipal Court

Please place this item on the City Commission’s August 5, 2014, agenda for consideration.  At its regular meeting held on July 22, 2014, the City Commission requested staff provide information regarding the annual lease payments for Municipal Court. 

Currently, the City leases 6,870 square feet in the building owned by Berkeley Plaza, Inc. at 1006 New Hampshire Street.  The Municipal Court offices, including the courtroom, the Prosecutors’ offices, and a Human Relations office are all located in this space.  The lease provides for the City to pay a base rent, plus an additional sum for the building’s insurance premium, common area maintenance, grounds maintenance, and real estate taxes.  The base rent and an estimation of the additional rent is listed below: 

Year	Base Rent	Additional Rent*	Total Rent
2014	$91,310	$23,175	$114,485
2015	$94,049	$23,640	$117,689

According to Ed Mullins, at 4.0% interest, an annual payment of $117,730 over 20 years will support a debt issuance of $1.6 million.  If the City continues to lease space at its current location, the annual lease payments will likely increase over time.  To support $1.7 million in debt over 20 years, an annual payment of $125,000 would be required.

Staff from municipal court and the Prosecutors’ Office met with Andy Pitts on Monday, July 28, 2014.  It is my understanding Mr. Pitts will be able to provide the Commission with information concerning co-locating the court and prosecutors’ offices with a new police facility, should that be the will of the Commission.