At the County Commission meeting held on Tuesday, a pivotal RFA was discussed as commissioners weighed the prospect of leasing the property at 203 N. 10th St in Salina. This property, situated just west of Memorial Hall, was recently acquired by private individuals at a public auction earlier this year.
The proposal before the Commission involved deliberating the possibility of entering into a lease agreement for the former state employment office building. The idea was initially broached during the Commission's study session on August 1, with the aim of securing this space while the County and City of Salina embark on a joint study of downtown office spaces, budgeted for the year 2024.
Several County staff members have inspected the building, assessing its suitability for various potential uses, including surplus property storage and relocation of offices currently housed in the City/County Building. The County Administrator, in collaboration with the County Counselor, has diligently worked with the property owner to formulate a lease agreement.
It's crucial to note that entering into this lease does not obligate the County to any specific use of the building at this juncture. Instead, it secures the property for a minimum duration of one year. The commencement of the lease hinges on the resolution of some repair issues that the property owner has encountered difficulty scheduling.
In terms of financial impact, the proposed monthly lease cost amounts to $3,364.25. If all issues are resolved, and the lease commences on September 1, the total expenditure for the remainder of 2023 would be $13,457. However, it is more likely that the lease would commence on October 1, resulting in a cost of $10,092.75. It's worth noting that this amount was not originally factored into the County's budget for this year.
Nonetheless, there is $11,825 in uncommitted funding remaining in the Commission Contingency line item. Looking ahead to 2024, the annual lease cost, assuming a full twelve months with an inflationary increase on October 1, 2024, is projected to be $40,596. The County's 2024 budget was formulated before this opportunity arose, and to accommodate this expense, staff proposes reducing the planned transfer from the General Fund to Capital Improvements from $100,000 to approximately $60,000. It's anticipated that more funds may become available during the 2023 financial audit, pending authorization from the Commission.
The motion to approve the RFA as presented garnered unanimous support, with commissioners voting 5-0 in favor of further considering the lease arrangement for 203 N. 10th Street.
