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Littleton council authorizes letter of intent for temporary office lease with South Metro Housing Options
Summary
City council authorized the city manager to sign a letter of intent to lease about 10,000 square feet at the Wells Fargo building to provide interim office and meeting space for South Metro Housing Options, a move staff says will create swing space while a facilities master plan proceeds.
Mayor Schlachter and council authorized staff to pursue a short-term leasing strategy to relieve crowded city workspaces and create flexibility during planned facility renovations.
City Manager (role) and Brent Soderlund, Littleton’s director of public works and utilities, told council staff growth over 50 years has left the Littleton Center near capacity and reduced meeting and swing space. Soderlund said staff proposes leasing roughly 10,000 square feet on the fourth floor of the Wells Fargo building as an interim “Littleton development center” and moving the community development team there to free space for other departments.
Soderlund outlined the preferred lease as a full-service 10-year agreement starting at $15.50 per square foot with a 3 percent annual escalation. He said the arrangement would include modest tenant improvements and that a full 10-year term would cost the city about $2 million over the term; one-time tenant-improvement costs were estimated at $250,000–$500,000. Soderlund said leasing provides faster, lower-upfront-cost flexibility than an immediate capital project.
City Manager (role) emphasized the lease is an interim strategy tied to a facilities master plan and future Bellevue service center planning. He said staff intends to negotiate termination provisions and non-appropriation language so the city may exit or adjust the arrangement if future plans or budgets change.
Council members asked about alternatives and safeguards. Council member Stillwell and others said they favored shorter terms or options; staff said those provisions will be negotiated and that a five-year term with a five-year option remains on the table. The city attorney noted multi-year obligations will include standard non-appropriation protections.
Council member Reichardt asked for clearer one-time and ongoing cost estimates; staff said ongoing lease costs would be accounted for in the general fund and estimated annual average cost around $197,000 (about $1.97M over 10 years). Brent Soderlund and Adrienne Burton, director of major projects, said tenant-improvement one-time costs would be budgeted and that the arrangement should preserve service levels by providing swing space during construction.
After discussion, Council member Reichardt moved and Council member (17) seconded a motion to authorize the city manager to sign a letter of intent to lease space generally pursuant to the terms outlined in staff's presentation. The motion passed unanimously, 7–0.
Next steps include directing staff to negotiate lease terms, return with negotiated language as required by council policy, and coordinate a public communications plan and workplace transition if negotiations proceed to a formal lease. The council did not adopt a final lease tonight; the LOI authorizes further negotiation.
The council took the action after a broader consent agenda earlier in the meeting that approved a set of resolutions and motions including support for a Front Range passenger-rail station at Mineral Station.
