Board hears informational briefing on lease-back arrangement for Peterson Myers building

City staff summarized a transitional lease-back arrangement for the Peterson Myers building under which the CRA (owner) will let the prior owner manage current tenants for about a year and retain $3,500 per month through lease proceeds as property management fees. Staff said the agreement covers the third floor and part of the second floor while the first floor remains available for other city uses.

Board members pressed staff on the transaction structure, asking who is the lessor and lessee and what role the CRA will play. One commissioner said, “I really don't understand the structure of this transaction,” and staff responded that the presentation was informational only and the full 26-page lease is in the packet for review. No motion was required or taken; board members requested continued updates.