08-13-1980 Council Agenda - Laserfiche WebLink

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QUESTIONS MOST FREQUENTLY ASKED ABOUT THE BUILDING PROGRAM During the Annual Conference, informational meetings were held for the delegates. The Building Committee gained valuable feedback from these meetings, and from discussions with individual city officials. Questions that were frequently asked are listed below along with the answers. 1) How much is rent now? What percent of the total LMC budget? The current rent for the League is going up sharply. In 1979 we paid a net of $52,000 for space. This includes a base cost of $7.15 per sq. ft., and a pass- through for additional taxes. Our new lease also establishes the policy of passing through additional maintenance and utility costs. (Rent costs for LMC have increased 35% in the last five years.) Current St. Paul rental property is $10 -14 per sq. ft. on the private market. This does not include parking. Parking spaces range from $25 -50 per stall per month. Both of these figures are subject to constant upward pressure. The architect estimates that current study indicates the cost of the League's new space would be $11.31 per sq. ft. (1980 dollars). Initially the cost of LMC space will be $1.31 over comparison rental rate of $10. This will be offset by the inflation of value of real estate and rental rates within two to three years. 2) Is there a financial return in building versus renting? With LMC owning its own facilities we will have stabilized our rental costs and protected ourselves against inflation, LMC ownership provides total control of space and the cost of space. Cost of surface parking stalls not only provides convenient car access to members and staff but is 45% less costly than LMC is presently paying for parking stalls. LMC ownership will provide protection against inflating of open market rental rates while at the same time building equity for member cities. Savings realized by an earth - sheltered, energy- saving designed building will cut energy costs by 50% or more. Tnough initially the cost of space in the new building will be slightly higher than comparable rental space, the savings due to the building's energy features will actually make the cost of space less than that of comparable rental space within five years. 3) Has a space study been done for the future? Is the proposed building adequate for future needs? Who will use excess space? Will they contribute? A space study was conducted in 1976, 1978, and again this year. The study concluded the following: 1. 10,000 sq. ft. of usable space would be sufficient for LMC operations. (Presently we have 7,200 sq. ft.) 2. Meeting space is inadequate. 3. Location close to the Capitol with easy access for city officials is a necessity. 48