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Central Services <br />Facility Management <br />City of Eugene <br />210 Cheshire Avenue <br />Eugene, Oregon 97401 <br />(541)682-2690 <br />(541) 682-6222 FAX <br />www.eugene-or.qov <br />May 8, 2008 <br />Stephanie Seubert <br />Evans Elder & Brown <br />101 E. Broadway, Suite 101 <br />Eugene, Oregon 97401 <br />, Dear Ms. Seu6ert, <br />On befialf of the City of Eugene, I would like to confirm our interest in leasing 1801 RSF of the third <br />floor, and 2678 RSF of the fourth floor of 101 East Broadway for use as offices for our Public Works <br />Administration Division office. In addition, we are interested in leasing the basement 1853 RSF for <br />combined use by PWA and Risk Services. We respectfully ask to negotiate the terms under which <br />the office space will be leased to us. <br />We would like a five-year lease term with an option for up to two more five-year terms. Starting from <br />- the $1.50/sf that Risk Services pays for Suite 450, we would like the final rate to reflect our <br />~` negotiations for improvements, the length of the lease, and the fact that the City of Eugene is tax <br />exempt and will be able to apply for a full tax exemption for the property for term of the lease. <br />Approval of the tax exemption requires that the rental rate has been established to reflect the savings <br />below market rent resulting from the tax exemption as per ORS 307.112(3) and OAR 150-307.112(5) <br />and (6). <br />The basement space is adjacent to our City Recorder Archives and we have discussed the possibility <br />of leasing it for .65/sf, again to be negotiated as far as improvements, length of lease. <br />We would like to have the space ready for occupancy by Fall 2008, probably on or around November <br />1 if the necessary components can come together. <br />Prior to move-in, and following tenant improvements and needed repairs for existing features, we <br />would like the suite to be cleaned (including windows, ceilings and light fixtures) and assurance that <br />all mechanical and electrical systems (check panel, replace light bulbs) are functioning properly. <br />The city will create preliminary space plans prior to coordinating with you for design and construction <br />documents by your architect. Our intention is to utilize the existing offices in their current <br />configuration to the largest extent possible. We will assess how the built-in cabinetry works for our <br />needs and will use the built-ins if possible. <br />Finishing the space will require new carpet and paint, a revised HVAC system to allow separate <br />thermostatic control for this space, some electrical revisions (probably minimal), a new ceiling and lay- <br />in light fixtures, possible revisions to the sprinkler system, and cabinetry. To the extent possible, we <br />want to use sustainable products and construction practices for the work to be done. <br />Page 1 of 2 <br />