FPRA presses tenant for firm schedule and cost estimates for Incubate Neighborhood Center after lease defaults

The FPRA spent substantial time on April 14 reviewing the status of the Incubate Neighborhood Center (formerly a school at 532 N. 13th Street / Means Court) and debating whether to terminate the current lease, convert the arrangement to a use/agreement, or move forward with agreed capital improvements.

Miss Cheyenne Harnage presented a chronological lease history: the lease was executed Oct. 12, 2021, with a 20‑year term and a 2‑year substantial‑completion requirement; a temporary use agreement in April 2022 limited occupancy to the first floor; the building was found occupied without a CO on Jan. 31, 2023, prompting a cease‑and‑desist and subsequent change‑of‑use and CO work. The first amendment executed in December 2025 acknowledged HVAC and roof repairs as possible FPRA participation items to reopen the building and contemplated funding participation subject to available funds.

Public commenters and tenants (Incubate representatives) described progress: Kanaria Gardner said the first floor is complete pending HVAC coordination, the second floor is defined and now back on the scope, and contractor quotes had been provided for HVAC and roof repairs. Board members asked staff to verify contractor quotes and demanded independent cost estimates and a detailed project schedule with start and end dates.

Cost and scope: staff reported multiple quotes for a split‑system solution in the $200,000–$300,000 range for mini‑splits and rooftop fresh‑air units; commissioners argued mini‑splits would not adequately address mold and ventilation problems and that true central HVAC and structural work (including roof and elevator installation) could multiply that figure. The building is owned by the city; the lease obligates the tenant to perform certain build‑out tasks, but the FPRA had previously agreed to consider participation in funding specific improvements. City legal counsel (Miss Hedges) advised the tenant is currently in default under the lease and that termination for cause is an available legal remedy; counsel recommended considering an operating/use agreement model rather than a long lease for future arrangements.

Board direction: FPRA directed staff to obtain and validate independent contractor estimates for central HVAC, mold remediation, elevator work, and roof repair; to collect firm start and completion dates and a deliverable schedule from the tenant; and to prepare legal options (including termination, restructure to use agreement, or a city‑led remediation plan) for a follow‑up meeting. Several commissioners urged the city to consider investing capital to bring the building to “Class A” standard before returning it to occupancy or offering it under an RFP for operators.

Next steps: staff will return with verified quotes, a project schedule with start/finish dates and funding options; legal counsel will prepare recommendations on termination vs. amendment and on converting to a use agreement if appropriate.