Council approves 10-year lease for "Spark Surprise" business hub at Elm Street

The Surprise City Council on Tuesday approved Resolution 2025-39, authorizing a 10-year lease with SimonCRE for an Elm Street storefront intended as a new business development hub to be branded Spark Surprise. The council voted unanimously to approve the lease, described in staff materials as an approximately $174,000 annual, triple-net agreement with a 3 percent annual escalator.

Staff presenters called the Elm Street site a smaller, more program-focused version of the city’s prior Techcelerator facility. "Investing in small businesses isn't about create just about creating jobs. It's about building a city where innovation thrives and where dreamers have the resources to turn their ideas into reality," said Brian Sandusky, a city staff presenter. Janine (last name not specified), who co-presented, described the plan as an "organically grown program" that will rely on local mentors, students and partner organizations such as SCORE and area higher-education institutions.

Council members said the move reflects a strategic shift. Councilmember Haney and others framed the facility as a "launchpad" rather than a permanent landing space for companies, emphasizing mentorship and curated curricula. Councilmember Greenberg asked for financial clarity; staff said the roughly $174,000 figure includes the triple-net obligations and that the lease rate is based on a working premise of about 3,500 square feet, so the final number could change if the exact square footage shifts. Staff confirmed a 3 percent escalator on top of the stated annual amount.

City staff described program features the council would support at the Elm Street location: a larger flexible conference space, a smaller mentoring room, a media/podcast pod, coworking areas and a mix of short-term access and program-based access tied to a planned "fitness for business" curriculum. Presenters said the model will include tiers of services for pre-revenue entrepreneurs and for established businesses needing scaling assistance; the fee schedule is not finalized and will be developed and brought forward for review.

Staff provided background metrics from a prior analysis of the city’s entrepreneurship work: since inception the program had served 130 companies, produced an estimated economic impact of about $400,000,000 and resulted in more than 500 jobs, figures staff attributed to a study referenced during the presentation. Presenters also said the existing Techcelerator property is about 60,000 square feet and that the city has about 15–20 licensees/cowork users there whose contracts expire in May; a multi-department reuse working group is evaluating future options for that larger property.

Council discussion touched on program execution, involvement of local K–12 and higher-education partners and a plan to keep the public aware through a branded landing page and outreach. Questions from council addressed the lease accounting (triple net), the fee model for users, the curriculum structure and how students and local mentors would be engaged.

The council motion to approve the resolution passed by unanimous voice vote, announced by the clerk. No amendments to the lease language were recorded on the public transcript; staff said legal counsel advised revised wording that staff would incorporate in the final documents.

Spark Surprise, as presented to council, will be a city-supported entrepreneurship and business-support hub located in the Elm Street area of the future Surprise City Center. Staff said it is intended to serve entrepreneurs, students and local small businesses with mentoring, classes and short-term workspace rather than long-term private office tenancy. The city will return with fee schedules and program details as those items are finalized.