Agenda Date: 06/16/2026
Subject:
Title
City Workspace Expansion Proposal
Body
|
From: |
James L. Becklenberg, City Manager |
|
Prepared by: |
Brent Soderlin, Director of Public Works & Utilities |
|
|
Julie Rotter, Facilities Manager |
|
Presentations: |
Brent Soderlin, Director of Public Works & Utilities |
|
|
Julie Rotter, Facilities Manager |
PURPOSE:
To present current space constraints and future workspace needs at the Littleton Center and to provide options for addressing those needs, including a proposed lease of the Wells Fargo building, near the intersection of Littleton Boulevard and Broadway.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
Littleton City Center opened in 1977. Since then, Littleton’s population has grown by 73% and City staff (excluding the Police Department) have grown from 46 to 103 employees, or 126%. Demands to serve a growing population have been accompanied by the evolution of City services over almost 50 years. For example, in 1977, the City did not have dedicated staff for Information Technology, Communications and Marketing, Economic Development, or the specialized Community Development functions that exist today. Additionally, the Police Department’s expansion directly influenced City Administration space at the Littleton Center. Notably, a Police Department addition completed in 2010 expanded Police space by 36,000 square feet while also absorbing approximately 2,600 square feet of City Administration space. In addition, earlier growth efforts included a Fire Department expansion constructed in 1981, which is currently occupied by South Metro Fire Station #11. Together, these developments illustrate how evolving municipal priorities require periodic space realignment across City departments.
As a result of these shifts, the amount of space utilized by City Administration staff declined from 56,000 square feet in 2010 to approximately 53,400 square feet today, largely due to the conversion of space to Police Department use. Even with this reduced footprint, City Administration staffing at the Littleton Center increased from 46 employees in 1975 to 103 employees in 2025.
To accommodate this growth without expanding the building footprint, staff implemented several internal modifications:
• Subdivided 11 private offices into 22 smaller offices
• Converted four conference rooms into private offices (reducing conference rooms from nine to five)
• Increased open office workstations from 34 to 77
• Implemented shared workstation procedures in select workgroups
This operational footprint evolution has occurred over decades without a comprehensive workplace strategy. Interim operational modifications have extended capacity, but current conditions now warrant a combination of mid-term workspace actions and long-term portfolio planning through the Facilities Master Plan.
While overall building utilization has become significantly more space-efficient over time, the remaining administrative footprint now supports substantially more employees, collaborative functions, technology infrastructure, and public-facing operations than originally intended. The average square footage per employee has decreased by 50%.
Looking ahead, as municipal operations continue to evolve, thoughtful and strategic space planning will be essential to support effective service delivery. Addressing current constraints, maintaining compliance with building codes and accessibility requirements, and planning for future staffing needs will require targeted facility decisions.
To address near-term space pressures, staff evaluated available office space in the Littleton market. Based on cost, location, and lease structure, and current availability, the Wells Fargo building, located near the intersection of Littleton Boulevard and Broadway, presents a viable and cost-effective option.
The proposed lease includes:
• 9,962 square feet
• 10-year term
• Initial rate of $15.50 per square foot
• 3% annual escalation
• Full-service lease structure (inclusive of property taxes, insurance, maintenance, and typically utilities and janitorial services)
• Tenant improvement allowance for carpet, paint, and minor wall modifications
This option allows the City to relieve immediate space constraints while maintaining operational proximity to the Littleton Center. The proposed lease should be viewed as an interim operational strategy rather than a standalone long-term facilities solution. The City’s ongoing Facilities Master Plan effort is intended to evaluate the broader civic facilities portfolio holistically, including long-term space utilization, operational adjacencies, workplace standards, deferred maintenance considerations, and future growth planning across departments
BACKGROUND:
Over the past five decades, the City of Littleton has experienced substantial population growth, increasing from 26,466 residents in 1975 to an estimated 44,879 residents in 2025, a 73.33% increase. To meet the needs of the community, City staffing has grown from 166 employees in 1975 to 351 employees in 2025, representing an increase of more than 110%.
Within this broader staffing trend:
• City Administration staff at the Littleton Center increased from 46 to 103 employees (126% increase).
• Police Department staffing at the Littleton Center increased from 56 to 123 employees (117% increase).
• City staff at other locations increased from 64 to 125 employees (approximately 95% increase).
These figures reflect both population growth and the expansion of municipal services, including Information Technology, specialized public safety services, Community Development and Planning, Economic Development, and Communications and Marketing.
Prior Actions or Discussions
N/A
FISCAL IMPACTS:
The proposed Wells Fargo lease would include 9,962 square feet under a 10-year full-service lease agreement beginning in 2026 at $15.50 per square foot with a 3% annual escalation.
The projected annual lease costs are as follows:
|
10 Year Lease Option |
|
Year |
Cost per SF ($) |
Total Cost Per Year ($) |
|
2026 |
$15.50 |
$154,411.00 |
|
2027 |
$15.97 |
$159,093.14 |
|
2028 |
$16.45 |
$163,874.90 |
|
2029 |
$16.94 |
$168,756.28 |
|
2030 |
$17.45 |
$173,836.90 |
|
2031 |
$17.97 |
$179,017.14 |
|
2032 |
$18.51 |
$184,396.62 |
|
2033 |
$19.07 |
$189,975.34 |
|
2034 |
$19.64 |
$195,653.68 |
|
2035 |
$20.23 |
$201,531.26 |
|
2036 |
$20.84 |
$207,608.08 |
|
Total Cost over 10 Years = |
$1,978,154.34 |
Because the lease is structured as a full-service lease, the City’s financial exposure is highly predictable. Property taxes, building insurance, janitorial services, and typical operating costs are included in the rental rate, reducing the risk of variable operating expenses compared to modified gross or triple net leases.
Additional one-time costs may include minor furniture relocation, technology infrastructure setup, and move-related expenses, which would be addressed through existing capital or operating budgets.
STAFF RECOMMENDATION:
Staff recommends authorizing the City Manager to sign a Letter of Intent with SMHO for a 10-year full-service lease for approximately 9,962 square feet in the Wells Fargo building at $15.50 per square foot with a 3% annual escalation.
Leasing this space provides a cost-effective and predictable solution to immediate workspace constraints, supports operational efficiency, and allows the City to continue long-term facility planning without requiring significant upfront capital investment.
ALTERNATIVES:
1. Maintain Current Configuration at Littleton Center
Continue operating within the existing footprint by further increasing shared workspaces and reducing collaborative areas.
Impacts: Likely to reduce employee productivity, eliminate additional meeting space, and negatively affect service delivery and workplace functionality.
2. Construct an Addition to the Littleton Center
Design and build additional square footage to permanently address space needs.
Impacts: Requires significant capital investment, extended design and construction timelines, and potential voter approval depending on funding structure.
3. Purchase a Building Instead of Leasing
Acquire commercial property to relocate some departments.
Impacts: Requires substantial upfront capital or debt financing and shifts responsibility for maintenance, taxes, and long-term building management to the City.
4. Shorter-Term Lease Option (3-5 Years)
Negotiate a shorter lease term to maintain flexibility.
Impacts: Likely higher annual lease rate, reduced tenant improvement allowances, and less long-term cost predictability.
5. Hybrid Remote Work Expansion
Expand remote work policies to support flexible space needs.
Impacts: May not be operationally feasible for all departments and does not fully address space needs for public-facing services or collaborative workgroups.