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Manti faces an acute shortage of office space for government agencies and businesses, according to City Manager Bill Mickelson.

City administrators are examining four options to deal with the shortfall, Mickelson said.One is renovating the old City Hall, which has had a temporary oc cupant, at a cost of $100,000.

Another is borrowing about $200,000 in low interest money and constructing a 3,400-square-foot office building between the medical clinic and the old City Hall on Main Street. Another proposal would put the beginnings of a second floor on the new building, at a total cost of $300,000. The loan would be paid from rental income.

The final option is to do nothing. "That means we'd be losing some agencies or businesses to other areas, a prospect we especially don't like because we're the county seat," Mickelson said.