Rental of the Ironton City Center’s fourth floor remains under discussion as city officials gather more financial information.

Tuesday, June 20, 2000

Rental of the Ironton City Center’s fourth floor remains under discussion as city officials gather more financial information.

The Ironton City Council’s Finance Committee met Monday about the project, adjourning to executive session with Mayor Bob Cleary to hear more details about an undisclosed firm’s interest in leasing the space.

The committee took no action on the matter.

Possible lease prices and the financial package needed to pay the space’s development costs without impacting the city budget could be available this week, officials said.

"We had an architect give us a cost estimate and we’re still considering the position that puts the city in," Cleary said after Monday’s committee meeting.

"We have to start at ground zero," councilman and committee member Jesse Roberts said.

Roberts led the council in tabling a resolution seeking bids for a "design and build" contract during its June 8 meeting, saying it is unfair to ask contractors to bid on something the city is not sure about.

Council agreed to take a few more weeks to discuss the project, even though some members contended that seeking bids was merely a way to get a handle on development costs.

"The lease payment must be able to cover costs of renovation in a reasonable amount of time," Cleary said Monday.

There might be alternatives in the development, like different floor plan options, although a decision has not been made, he said.

City council must make the final decision.

Although developing the fourth floor as rental space surfaced when the Ironton City Center was first constructed, recent discussion began earlier this year after two interested renters – one a government-type agency – approached the city.

The Finance Committee took up the issue June 5, pouring over possible financing situations to develop the requested space quickly.

Committee members said costs of constructing the rental spaces must be offset completely by rental income.

Under several debt service estimates, though, developing the space at $45 per square foot seemed too high and renting at $6 seemed to low to recover costs.

The committee also said questions remained about potential renters’ commitment to using the space, the financial impact of space planned for use by Ironton Municipal Court and other issues.

The next move will be to continue the financial planning and try to get the fourth floor developed, Cleary said.