A resolution approving a proposed Second Amendatory Agreement to Sublease Agreement between the City and County of Denver and DP Media Network LLC for the addition of 27,467 square feet on the 9th floor of 101 W. Colfax Avenue. Adds $9,629,641.85 to the sublease agreement with DP Media Network LLC for a new total of $31,319,346.69 for an additional 27,467 square feet of office space on the 9th floor of the Denver Post building at 101 West Colfax Avenue for City use (FINAN - 201626030-02). The last regularly scheduled Council meeting within the 30-day review period is on 4-9-18. The Committee approved filing this resolution at its meeting on 2-20-18.
Pertaining to the intergovernmental agreement with RTD for neighborhood planning along Colfax under bills and finding consideration. We have nothing called out. Under pending. We have nothing called out. Madam Secretary, please pull up the first item. 191. Councilman Flynn, we put resolution one on the floor. When? 91 on the. Floor. Sure, Mr. President. I move that council resolution 18 dash 191 be adopted. All right. It has been moved and seconded comments by members of council. Councilman Flynn. Mr. President, I ask that this be called out for a vote because I wanted to vote no on it. I understand the terms of the lease. It seems that we're paying less per square foot than we did for the last sublease we did with the Denver Post over at 101 West Colfax. But when I reviewed the agenda over the weekend, again, I just couldn't I just couldn't vote yes to pay $9 million plus to to the parent company of The Denver Post after they laid off 30 journalists in this town, one third of their staff. And it's just. Mr. President, just something I couldn't I couldn't do. So I wanted to have it out for a separate vote. Thank you. All right. Thank you. Councilman Flynn, any other comments by members of Council Councilman Ortega? Thank you, Mr. President. So one of the the important things that I have requested is to see an overall. Real estate master plan. And what I learned from our real estate office is that every agency has their own real estate plan. But somebody has to have that comprehensive look in where we go with as a city in looking at future needs. You know, we own a property that was purchased by the city that we ended up not utilizing that could have been used for office space over in southwest Denver. It would be far cheaper to renovate that and utilize that facility than to be utilizing the Denver Post building where we already have two floors of that building. Some of the more expensive real estate. We don't have to have every agency concentrated downtown. We have a variety of agencies that have historically been scattered across the city. You know, we have our Rosslyn office out in northeast Denver. We have our wastewater department in southwest Denver. You know, this is part of how our city has functioned. And I just think it doesn't make sense to be spending this much money for downtown real estate when we own property elsewhere. So I will be voting no tonight on this as well. All right. Thank you, Councilman Ortega, Councilman Lopez. Thank you, Mr. President. I think Councilman Flynn. There's some solidarity on that when I'm. I'll be voting. No as well, too. Yeah. All right. Any other comments from members of council? Got questions on this or this? Okay. You didn't log in, but Councilman Nu, you got a question for real? I think you called me. Yeah. Real estate. Yeah. Is someone here from Lisa? Good evening. Lisa Lemley, Division of Real Estate. Lisa, thank you. Can you go over some of the. Costs associated with this. That we've commented on and how. Long is. This agreement this sublease? I am going to apologize because the term I did not bring with me, i believe it goes through 2028, which is consistent with The Denver Post. So these are Subleases from The Denver Post. So we stay within that. It's to give us the expansion and contraction ability right now that we need with the overflow that we have in Webb. I can't address that. Actually, the building that Councilwoman Ortega is mentioning, we have been looking at some other internal city uses that we may be utilizing that building for what has made the Denver Post building a worthwhile one to have the discussion for. Is that it? Especially this ninth floor? We need to be clear. The Denver Post was not on this floor. It was another tenant. And Denver Post had the lease with the other tenant. The tenant was downsizing. We stepped in, which is why the lease rate is also less than the other sublet release that we have in place. And it was just backfilling their space, so we were not moving any Denver Post agency employees out of that floor. But it does allow us to have efficiencies with the agencies that are already in the building, the technology that is already in the building, and the proximity to web not for our employees so much as for other clients or public that comes that needs to go sometimes between a couple of different agencies. And what is the cost per square foot for? For this one, it's $28.20. And for. Me and you know, in. The DAMION dollars, you know, it's about. $350. A square foot that we could use to build a facility. Sound like for that kind of money you could you could possibly build a are used to renovate another space would more cheaply or do you think is. Well I think time well I don't know that we could do it any that's a hard one to answer because we're comparing different things. What I would say is timing is an issue for us though, as we've had the new fees for the last few years that have continued to increase up around 250 is a year. Where we've got about you owed about 13,000. Employees. Permanent in. Temporary. Positions. And so I think. Councilwoman. Ortega brought up a good point. We need to plan out the total real estate. I mean, there's this is a very large workforce, a. Huge employer base. And so it would be nice to know how we're going to be able to manage the office. Space and work. And we could sit with you. Absolutely. As Councilwoman Ortega referenced, and I believe I mentioned it at one of the a previous city council meeting, we do look, especially for our major agencies, we look at the master planning efforts so that we understand how they are growing, what their business function is, so we can prepare for that . Within that, then we take it and apply it as well as some of the other plans, the overall looking at the overall portfolio of the city. So we are looking down the road at a three and five year plan. And if we did not approve this tonight, what would the impact would that be on? It would be very significant in terms of some other moves that are there's it's almost a domino effect for us to be able to address some of the other issues that we're trying to find space for within web so that we can bring those and allow those hires to happen. Yeah. Thank very much. Thank you. Yeah, just piggyback on that. Can you name the agency that's to be moved to for. The ninth floor? It's Parks. Okay. So this would is it fair to say that it would impact our new employee, FTE, that we have hired for 2018? It would as it impacts the ones that have not been able to be hired yet. Got it. That's the key. Thank you, Councilman Espinosa. So we have 30 to 50 FTE coming to Parks. I don't have those numbers in front of me. I'm sorry. I can certainly confirm that for you tomorrow. That would just be huge increase over what I know. So that's. That's. That would be worth knowing. The. Yeah. Yeah, no, that was Councilman President Brooks. That was the question I had. So thank you very much. Yeah. Thank you, Councilman Espinosa. All right. Seen? No, Dr. Sussman. That reminded me of a question. Thank you, Mr. President. Isn't the plan also to include the number of employees that we may be hiring with the bond project? That we are expecting quite a number of new fees. And and even the council has requested there be even extra employees for things like traffic and transportation. Thank you, Councilwoman. Yes, this includes when we look at this overall plan again for Webb, for the expansion that would go into the Denver Post, building other locations as well. It takes in the approved of TS. That also includes our Bond team that will be coming on and growing as the projects grow, as well as other consultants . So other agencies, tech services, one also hire consultants that are not in that FTE number that we work for. So this. Is part of a planning correct face that you all are doing for the city and for office. Use. Yes. Thank you. Okay. Just comments from Councilman Espinosa. Yeah. I think at some point I'm going to want to sort of understanding I mean, since for three years we've been asking for that real estate master plan and some sort of long me and wide, wide scope vision of of of real estate and space and and space planning and all this stuff. We keep doing this incremental thing. Bonds are not new weeds. We just got out of the ten year bond. Somehow we did it. We went through a recession and cut down FTE. So without, you know. So I would like to understand how many square footage did we how many square feet did we get rid of when we went through a downturn? And how much of that have we captured and how much more have we gone past that? Because are we now getting too big for our britches and unhealthily sort of large as a as an organization? And I know we approve that budget every year, but that has been a lingering question. And we are going through the budget process right now. Do we have space for any additional FTE? Yes, because if this is always a component to every time we add, because we always talk about the all the sort of wraparound costs associated with FTE, if we don't actually have the space and we're going to end up in other contracts at very high dollar amounts at peak market while we're acquiring acres and acres and acres and square footage out at the Western Center and other places in-we we sit on vacant properties in District three and in District seven, it's just and we sell land in District one. It's just I need some really clear explanation on this. All right. I'm going to just make a couple comments. Number one, I think Councilman Ortega's request is justified. We do not have to think about a master plan of what we're doing for the next 5 to 10 years. It's tough because we're we may be entering into a recession. And I remember in 2011, Web was empty, you know, and and now it's not because we are responding to the demand of the city. I think I stand in solidarity with Kevin Flynn and Councilman Flynn. And I think a lot of folks who are hearing about what's going on with The Denver Post, they hear that, you know, and immediately react. Unfortunately, we have the issue of responding to a budget that we just approved and to constituents who are demanding for more services. And so if we stop those services because of this issue, I think it's going to I think it's going to come back on us. And so I'll be voting in favor of this with all of those issues. But I would ask that we would take a three, five, seven year look and start thinking about our real estate plans around around the city. This is expensive. This is very expensive. But at the same time, we did approve this for our budget. Madam Secretary. Raquel Ortega. No. Sussman, I black. CLARK All. Right. Espinosa No. Flynn Now. Gilmore. Herndon. High. Cashman. No. Can each on. Lopez. No new. Mr. President. I. Please call the voting or announce a results. You have certainly ten on the board. We're missing two dozen. Mm hmm. Sorry. Okay. Constable, when anyone passes seven five. All right. Please bring up 126. 127. 128. Councilwoman Ortega.