• Edward Jones has been a subtenant of property leased by the City of Vancouver for the past ten (10) years; staff is recommending a 5-year extension of this sublease agreement.

• If approved, Edward Jones will be leasing 1,193 square feet of retail space at Esther Short Commons from the City for an additional period of five (5) years through May 2025.

• The lease rate will be $19.92 per square foot plus Leasehold Excise Tax with annual 3% escalations.

• Lease revenue over the extended lease term will be $122,185.

Goal 8: Strengthen commercial, retail and community districts throughout the city.

The City of Vancouver is currently the tenant under a long-term lease for approximately 8,450 square feet of retail space located at 505 W. 8th Street.  In 2007 the space was vacated by the indoor Vancouver Farmer’s Market and the City began subleasing the space.  Edward Jones has been in this location for the past 10 years and expressed interest in continuing to utilize this space. Edward Jones and the City were able to negotiate a new sublease for an additional 5-year period (June 2020 through May 2025).

Staff recommends that Council approve the execution of a second extension of a sublease agreement with Edward Jones Co. LP d/b/a Edward Jones for 1,193 square feet for a five-year (5-yr) extension of the lease term.  In order to install new flooring, the parties have negotiated a tenant improvement allowance equal to two (2) months rent valued at $3,960.  Edward Jones will manage their improvements.  The first year of rent will be $19.92 per square foot, which is comparable to market rates, plus leasehold tax and will escalate 3% annually thereafter throughout term of sublease. Current rent is $18.92 per square foot.

1. Provides a predictable rental revenue stream for the next 5 years and a positive cash flow to the City.

2. By having Edward Jones manage its own improvements, the City can avoid additional capital expenditures.