CITY COUNCIL COMMUNICATION: 01-050 AGENDA: JANUARY 30, 2001 SUBJECT: LEASE OF NEW OFFICE SPACE FOR THE DES MOINES MUNICIPAL HOUSING AGENCY WITH HPM INVESTMENTS, INC. TYPE: RESOLUTION ORDINANCE RECEIVE/FILE SUBMITTED BY: RUSSELL C. UNDERWOOD ACTING HOUSING DIRECTOR

ITEM ____ OFFICE OF THE CITY MANAGER CITY OF DES MOINES, IOWA SYNOPSIS - Approval of lease of new office space for the Des Moines Municipal Housing Agency with HPM Investments, Inc. (a wholly owned subsidiary of the Denny Elwell Company, 2401 SE Holmes, Suite 9, Ankeny, Iowa 50021, James M. Gocke, President), including lease improvements. FISCAL IMPACT - Lease cost of $64,792.65 and up to $65,000 for leasehold improvements, for a total of $129,792.65. RECOMMENDATION - Approval. BACKGROUND - The Des Moines Municipal Housing Agency has maintained offices in Royal View Manor since 1973. For years, the U.S. Department of Housing and Urban Development (HUD) has requested that the Des Moines Municipal Housing Agency move its administrative offices out of Royal View Manor. These offices currently occupy the first and second floors of the building (removing 18 apartments from availability). Moving the offices to Park Fair Mall has the following benefits: · The Department's visibility will greatly increase, which should result in an increased customer base. · It has ample parking for customers and staff. · It is on a bus line. · It is accessible to those with disabilities. · Other agencies are present who can complement our services such as the Polk County Senior Citizens Center. · Moving all operations into a professional office space should result in increased job satisfaction and increased productivity in staff. · All of these should combine to increase customer service. Moving out of Royal View Manor has the following benefits: · The 18 apartments on the second floor will need minimal rehabilitation to re-enter circulation. · The daily living disruptions many Royal View residents experience will diminish. (The building will become residential again.) · The first floor can provide office space for organizations that provide social services to our residents, and, potentially, much needed rental income. · Security at Royal View will be increased (to compensate for the absence of staff) through either the addition of a Neighborhood Based Service Delivery office or through a contract with a security firm.