MEMORANDUM

TO: Gary Superman, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Scott Holt, Finance Director

Max Best, Planning Director

Paul C. Ostrander, Land Management Officer

FROM: Marcus A. Mueller, Land Management Agent

DATE: August 25, 2005

SUBJECT: Resolution 2005-081 Authorizing the Continued Rental of Office Space in the Red Diamond Center for the Community and Economic Development Division

The Kenai Peninsula Borough is currently leasing office space at the Red Diamond Center for Community and Economic Development Division offices. The final one-year renewal term of that lease expires on September 14, 2005.

The continued use of this space is desirable for KPB through an extension of the terms and conditions of the current lease. As the current lease has had a rental rate locked in for the past five years at $1,980 per month, a one-time 3 percent increase in rent is proposed for the 3-year lease extension.

The attached resolution would authorize the Borough to enter into a Lease Agreement Extension providing for three additional one-year renewal terms with a rental of $2,040 per month.

Expenditures for the lease will be charged to the CEDD Rents and Operating Leases Account No. 100.11225.43810.