3 science firms interested in leasing old City Hall in Surprise

Three science-related firms have expressed an interest in leasing Surprise's old City Hall.

The interested parties are looking to use the 58,000-square-foot space as an incubator for start-up companies, City Manager Randy Oliver said. Business interests range from biotech to pharmaceutical production.

The city sought proposals through early November for the old facility, located at 12425 W. Bell Road, west of El Mirage Road.

There was no proposal to purchase the building, which has a minimum selling price of $8.6 million. There were four applications to lease the facility, Oliver said, but the fourth application has been thrown out because it was a real-estate broker hoping to use the space for retail.

"We weren't looking (for someone) to serve as our leasing agent, in essence," Oliver said.

The city is withholding the names of the three incubators while discussions with them continue. Oliver said revealing the names now could put both the city and the companies at a disadvantage in negotiations.

"When we get to the end of the process, we will release the names of the participants," Oliver said.

A committee of city employees is expected to interview the applicants on Dec. 5. The Surprise City Council could address a proposal by early January, Oliver said.

Oliver said he was not surprised no interested buyers came forward, but had expected a few more applicants interested in leasing the space.

"But I think we got a wide cross section of firms with a diverse group of abilities," Oliver said.

Surprise will begin vacating the old city hall by June to move into its new municipal headquarters southwest of Litchfield and Bell roads. Construction of the $61 million, four-story new city hall could be finished as early as March or April, Oliver said.

The old facility, an open-air complex with four separate buildings, was once a shopping center that included restaurants, a beauty salon, a golf-cart store and medical offices. The city moved into the property in May 1993. Desert Palms Restaurant has a lease with the city for a portion of the complex through September 2012.