Your employees will be upset to leave Canterra.

Lavo

 -----Original Message-----
From: 	Milnthorp, Rob  
Sent:	Wednesday, February 14, 2001 10:06 AM
To:	Lavorato, John
Subject:	Enron Canada Office Space

John, first off, congrats on your promotion! 

You may recall that our Canterra lease expires June, 2002. When we consolidated our floor space on 35, we were able to incorporate an option to extend the 35th floor lease (at market rate approx $24 sq.ft) for an additional 3 years to June, 2005. Notice to extend has to be provided June of this year. 

The reason I'm bringing this to your attention is that I'm concerned that we will not be able to accomodate any growth for years 2002 - 2005 in our current space. We will be at 115 employees this summer (150 sq. ft./employee) and our max is 130 (135 sq.ft/employee) which should get us through June 2002.

Given this, I have explored a number of leasing opportunities outside of Canterra with the goal of finding a floor plate more conducive to a trading organization. You may recall that TransCanada was in the process of building a new office tower across from Esso Plaza. They are now in the process of sub-leasing a number of the floors. 

The tower was designed for their own trading organization and is the largest column-free floor plate in Canada (28,000 sq. ft.). It's state of the art technology includes a raised floor system for wiring (ie no coring). Coral Canada recently leased two floors in the tower for their Canadian trading operation. 

We are looking at the 31st floor at $24 sq. ft for a 10 year term with some overlap with our current lease for build-out. At 135 sq. ft/employee we would be able to staff 200 employees. However, given the rectangular/column-free floor plate, we probably could get down to 100 sq. ft/employee (270 employees). This should be sufficient for many years to come.

Please let me know whether we should proceed in negotiating a lease with TCPL.

Regards
Milnthorp