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5.0. HRSR 11-02-2009ITEM ~~ 5 Gry of Ells .~ , River MEMORANDUM T ®usin ee~ve~®p~n uh~~i~ F a~he~~~e ehe~ich, irQCr c~n~mic eves®en~ T o ®~en~e~ Z, 2 ~ CTo ~scuss uil~ngs a 716 720 ain ~ree~ Staff will update the HRA on the condition of the buildings and interest f~:o~n Axts Alliance in extending the lease beyond the Dece~nbef 31, 2009 expiation. Roof Rebai Coin~lete In April 2009 the HRA authorized staff to contract fog a goof patch and ~epah: of the HRA building at 720 Main Stfeet, currently occupied by the Arts Alliance. The goof ~epai was completed by B&B Sheet Metal & Roofing, Inc. along with some minor repairs completed by the City's Maintenance Department. The total cost was under: X3,000 and completed as of the end of August. HV~C System In early Qctober the two HVAC units at 720 Main requied repai and replacefnent of the motors at a cost of ~2~ 65. Maintenance staff has advised that the HVAC units will requite replacement next year if the building is continued to be occupied. Replacefnent of the two units is estvnated at $7000. Arts Alliance Lease The two year lease agreement wit11 the Arts Alliance exp.ies December 31, 2009. The Arts Alliance has indicated a strong interest in extending the lease. The relationship betwee~.a. the HRA and Arts Alliance has been positive. Arts Alliance has done an excellent job in maii~taitling the building's appearance, in addition the progra~n~ni~.~g and se~~vices have been a positive addition to the vitality of downtown, Staff requests the HRA's authorization to proceed in negotiating a lease extension for up to two yews, with a condition that Arts Alliance pays all building repais, insurance and utilities.