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Council Meeting Minutes May 24, 1994 Page 12 Council Business. continued I Benke feels an aggressive marketing campaign is needed to locate tenants who are compatible with the facility's objective of providing services to families. When the City Hall was built, the City tried to be conservative and then ended up short of meeting space. He found that opinions from the real estate community have recommended the third floor, if the need for space is apparent. The project is not risk free, but he supports the third floor construction. He moved a motion to authorize staff to proceed with preparation of plans for the third floor, direct the use of internal financing, and direct staff to prepare an aggressive marketing strategy aimed at non-profit and public sector compatible tenants. Williams does not question the potential need for space, but feels more research is needed to determine the tenant availability. He maintains the philosophy of locating tenants who compliment the primary purpose of the facility, and questioned if this type of tenant could afford the rates needed to make the project viable. Considering these factors, he cannot support Benke's motion. He noted that there is a possibility of constructing space at the end of the building to house a senior program if the senior center does not materialize. If staff provided assurance of tenancy and analysis that the third floor is the best use of space as opposed to an annex; he would favor a motion, but not based on current knowledge. Gunderman does not support the Benke motion. He is not opposed to the third floor, but feels there is not enough evidence to support that decision. I Fulton had preferred to go before the Council with a confirmed tenant, but the timing of the recommendation was driven by the construction process of the second floor and altering the project scope to include that third floor. He recommends a direction to staff to proceed with the final design of the third floor, but not initiate construction. If Council wishes to direct staff to locate interested tenants within the next two weeks, all the City would then lose would be the costs associated with the design plans. Williams acknowledged that it is somewhat difficult to possess a confirmed lease before construction, but feels that determining the seriousness of potential interest is important. He feels a potential tenant base would be organizations serving families who could afford the proposed rent range. That information would be useful in determining whether the 17,000 sq. ft. is viable for tenancy. Larson would like to support the motion, but feels the project involves potential financial risks. He welcomes the construction of the first two floors, but has concerns relating to the third floor construction. Samuelson noted the need for aggressive analysis of the project's viability and potential market needs. She favors ultimately constructing a third floor if the need is identified. I Due to the possibility that the motion may be defeated, Benke questioned whether the marketing analysis could be pursued. If Williams was presented with information that interested, compatible parties could afford the rates and utilize enough square footage to make the project successful, he would have interest in reviewing that information.