The company that picks you up might need a pick-me-up.
After approval by two City Council committees last week, a deal to relocate Enterprise Rent-A-Car from one Downtown location to another hit a speed bump Monday.
The company is in the Omni Downtown but wants to relocate to a vacant retail space within the Main Library parking garage.
The deal is for five years with three five-year renewal options at $10 per square foot for the 1,081-square-foot space. It also will rent 26 parking spaces for $45 per space, per month — a 20 percent discount.
The company would invest $89,000 for build-out on the space that has never been rented.
Downtown Investment Authority Board Chair Oliver Barakat, a commercial broker by trade, said the rent per-square-foot price for a corner spot was low and more in line with a non-corner spot.
He and others agreed the lower first-term rates were OK, but the ensuing locked-in renewals were of concern.
After the initial five-year period, the rate increases to $11 per square foot for the second period, $12 per square foot for the third and $13.50 for the final five years.
Parking spaces would be adjusted to the monthly rate, minus the 20 percent discount.
Board member Kay Harper called those rates "shockingly low."
The length of the deal and rate of renewal increase is the way the company signs leases, said Steven Overgaard, Enterprise group operations manager.
"We feel it is market value," he told the board.
He said the company likely could do a 15-year deal at most because its tenant build-out cost is amortized over the length of the term.
As for the corner lot, the spot allows for better visibility and signage from the street, something the company doesn't have at the Omni.
The board approved the deal with conditions — namely that the first five-year period is maintained but each renewal be reviewed to determine market conditions.
City Council member Lori Boyer will take the authority's recommendation to the full council tonight and ask for the deal to be put back into the committee level for further review, although council could ignore the request and vote it up or down.
Barakat said the goal for future deals involving Downtown will be to come to the authority before they hit the council level for a vote, so the board's vote can influence the council decision.
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