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MINUTES <br />City Council <br />June 30, 19II7 <br />However, bJorner noted that he cannot forget the elementary school <br />space problem that is mounting. I~lorner stated that there is a need <br />to sell buildings to capitalize elementary space as the School District <br />does not feel it can go to the community and ask for funding. <br />6~lorner also reported that 916 wants to locate at the east and west <br />campuses and the School District has suggested that they remodel <br />existing space to fit their needs and pay the District the difference <br />in what it would have cost to construct a new facility. However, the <br />cost of remodeling may be such that the School District will realize <br />very little cash. The School District will not be able to proceed <br />with such a plan if the bottom line is not good for the School District. <br />Pat Pelstring asked the amount of the leases negotiated. <br />Borg reported that the leases are for $8.00 per square foot, with <br />the District providing utilities and costodial services. <br />Mulrooney asked houi the ordinance applied to potential tenants. <br />The Planner replied that the use is restricted to public uses. <br />Fahey read the ordinance definition for Public Zoning as well as that <br />of Community Center. <br />Fahey stated that the School District needs to determine if it will <br />sell Capital View, and if not, then the City can explore the options <br />with the District. However, Fahey stated that the City cannot spend <br />a lot of money on consultant's fees to find mutually beneficial tenants <br />until that decision has been made. <br />Pelstring calculated that at $8 per square foot if half the Capital <br />View site were leased this would generate $5II4,000 after operating <br />costs of $250,000 would leave $334,000 in excess revenues available <br />to the School District on an annual basis. This money could be used <br />to pay a$2.2 million bond over 10 years at 8%. <br />Klassen noted that Pelstring is not taking into account the large <br />com~on areas that cannot be considered leasable. <br />Borg estimated that the amount of leasable space at Capital View was <br />46,000 square feet. <br />4lorner stated that it may be possible to lease the entire building to <br />another educational institution, however the $8 per square foot is <br />too costly for them. 4Jorner stated that if it is possible to <br />come up with an acceptable tenant that will generate enough revenue, <br />arrangementscould be worked out for a senior center. <br />Fahey pointed out the fairly restrictive zoning on the property, and <br />suggested that if an acceptable tenant was found, the City may be <br />willing to consider a PUD zoning on the property, but the amount of <br />Page -4- <br />