SUBJECT:
Title
A Resolution of the Board of Trustees of the Town of Erie Approving a Lease Agreement for 555 Briggs Street
Body
DEPARTMENT: Economic Development
PRESENTER: Ben Pratt, Economic Development Director
TIME ESTIMATE: 5 minutes
only required for non-consent items
FISCAL SUMMARY:
Cost as Recommended: $40,000
Balance Available: $ 0
Budget Line Item Number: 100-22-910-573190-000000 ($30,000)
100-22-910-605000-100372 ($10,000)
New Appropriation Required: Yes
STAFF RECOMMENDATION:
Recommendation
Staff Recommends approving the 555 Briggs Lease Agreement for the term May 1st- December 31st 2021, at a Rental rate of $3,750/month ($30,000 Total) and the additional appropriation of $10,000 for site improvements.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The vacant lot located at 555 Briggs street (next to the post office) has provided little to no economic return to its owners nor any value to Downtown Erie for many years. The property owner and the Town have been approached on many occasions by individuals and organizations interested in activating the lot with numerous temporary uses including but not limited to: Farmer’s Market Expansion, Mini Concerts, Food Trucks, community event expansion (i.e. Town Fair, Biscuit Day) etc. The property owners, Tom and Judy Gold, are interested in providing the space as an amenity to be used for these commercial and civic uses. However, they don’t have the time or capacity to do so themselves.
The Economic Development Department recommends the Town enter into this lease agreement so the property is more effectively used and activate this space by providing a destination for anticipated community engagement activities and events that will take place during the proposed lease term (May 1- December 31st).
Below is a summary of the costs and the anticipated revenues (conservatively projected) in an effort to financially break even and provide a brand new amenity and resource to the Downtown.
Total Costs:
$3,750/month for 8 Months: $30,000
$5,000 Grading and $5,000 additional Site improvements: $10,000
Total: $40,000
Revenues and Benefits:
• $100/week from the Farmer’s Market to allow it to expand operations each Thursday onto the lot to accommodate COVID restrictions: est. $2,000
• Additional Events: Biscuit Day, Town Fair, Wine Fest, a $500 full day activation fee: est. $1,500
• October Harvest/pumpkin patch Activation: $2,500
• November/December Winter Activation: In an effort to provide additional amenities and interest to support the Downtown Erie Ice Rink we are proposing renting the lot to vendors for Holiday season to activate the lot in partnership with DEBA: $2,500/month- $5,000 total
• Stage/Entertainment Rentals: Parks and Rec had a number of requests during the pandemic. We conservatively estimate an additional 20 rentals at $500 each for private event activation: $10,000
• Food Truck Request $500/day fee est. 10 trucks for the season: $5,000
• Sponsorships: $10,000
Total estimated Revenue: $36,000
Community Engagement
With the downtown infrastructure improvements, home rule charter, and comprehensive plan all requiring expanded community engagement opportunities, we believe using this lot could be a unique and “extra” opportunity to program and engage residents in each of these processes. We would be using this lot as an anchor or home base for community engagement and informational purposes in an “open air” environment.
The total lot dimensions are 50’ x150’. By dedicating half the space for ongoing community engagement and leasing the other half as mentioned above, the Town will be leasing a downtown lot for engagement for approximately $500/month (Total cost (40,000)- Total Estimated Revenue ($36,000) = $4,000: $4000/8 months = $500)
There are also indirect benefits. By activating this vacant lot the Town would generate more traffic and commerce downtown.
By eliminating the months January-April we bring down the total cost of the lease significantly and eliminate the burden of trying to activate the site during the “low season”.
Fiscal Impact: $40,000
Board Priority(s) Addressed:
ü Attractive Community Amenities
ü Prosperous Economy
ü Small Town Feel
ü Safe and Healthy Community
ü Fiscally Responsible
ATTACHMENTS:
1. Resolution
2. 555 Briggs Street Lease Agreement