Several years ago the city paid to have space built in the new downtown garage. They called for bids to lease it out. They rejected a resturant that submitted the highest bid and accepted a low bid from a gym type company, but the bid was so low that the city (taxpayers) are losing money on the deal. It was a long term lease. Does anyone know just how much the city is losing. $$.? Did the original bidder/leaser sublease the building at a much higher price and profit from the deal? Who are the people who own and use the gym? I remember at least one Council member was eager to lease it to this orginazation as he stated " I can walk to that location----".
Are lease rates downtown highter now than then?
Their pliosphy: city Can't wait for new bids to be submitted! Must take low bid quickly.
At the same time the city leases space downtown at a cost of at least $500 plus a square foot for a fairly short time. and I think a cost of over 3 million dollars for 7000 sq ft space. Plus the cost of remodeling the place.
Does Anyone Know what is happening at the city owned space in the new garage that was leased out to a private company at a $loss to the taxpayers?
Original post made by An Observer, Another Palo Alto neighborhood, on Jul 2, 2007