Fiscal Note
This lease requires the City to pay an annual rent of $58,000 plus all utility costs and maintenance expenses, real estate taxes, and fire and extended coverage insurance. Additional rent payments of up to $2500 annually are authorized to fund tenant improvements required by the Madison Police Department. Funding is included in the 2009 Executive Operating Budget.
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Authorizing the execution of a lease at 29 Marsh Court for the storage of evidentiary vehicles and other miscellaneous materials associated with Madison Police Department operations.
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Whereas, the Madison Police Department (MPD) continues to work to reduce costs for the storage of evidentiary vehicles; and
Whereas, it has been determined that leasing warehouse space by MPD is less expensive than paying fees for storing such vehicles in privately operated facilities; and
Whereas, the leasing of warehouse space by MPD will also provide for the storage of other miscellaneous items; and
Whereas, a warehouse facility at 29 Marsh Court meets MPD's requirements for storing vehicles and is available for lease; and
Whereas, the terms of the lease have been negotiated with the owner.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute a lease (the "Lease") with Wahnfried Holdings LLC or its assigns (Owners) subject to the following terms and conditions:
1. The term of the lease (the "Lease Term") shall be four (4) years beginning on January 1, 2009 (the "Commencement Date") and ending on December 31, 2012. The Leased Premises shall consist of the building, containing approximately 3,248 square feet of office space, 5,922 square feet of warehouse space and 1.70 acres of land located at 29 Marsh Court, Madison Wisconsin. The Leased Premises are depicted on attached Exhibit A.
2. The City of Madison (the "City") may renew the lease for an additional one (1) year term by providing written notice to the Owner on or before August 1, 2012.
3. The base rent ("Base Rent") for the first year of the Lease Term shall be $58,000, payable in equal monthly payments. Throughout the Lease Term and, if applicable, the Renewal Term, the Base Rent shall increase by 3% annually effective as of the anniversary of the Commencement Date. In addition to the Base Rent, the City shall pay to the Owner as "Additional Rent" the costs of the improvements described in Section 9 below. The costs of the improvements shall be amortized with 0% interest over the Lease Term and paid in equal monthly payments.
4. The Lease shall be a triple net lease. For purposes of the Lease, the term "triple net lease" means the City shall pay to the Owner Base Rent, plus real estate taxes, janitorial, snow removal, landscape maintenance, parking lot and fencing maintenance. Base Rent and triple net charges shall be payable in equal monthly installments.
5. The City shall be responsible for all charges for utilities used upon or furnished to the Leased Premises and for all costs associated with telephone and data/computer installations and services.
6. Except as may be covered by the Owner's insurance policy for the property, the City shall keep and maintain the interior of the Leased Premises in good order and condition, including all partitions, doors, door operating devices, glass, floor coverings, fixtures, heating, air conditioning, plumbing and electrical equipment and appurtenances whether installed or owned by the Owner or the City, and shall do such periodic maintenance of the Leased Premises, including touch-up painting, decorating and cleaning of the interior of the Leased Premises as may be required. The City shall also be responsible for washing all windows, cleaning of the Leased Premises and maintenance and repair of any personal property installed in the Leased Premises.
7. The Owner shall keep the foundations; roof; sewer system; concrete floors, structural portions of the walls; and all other structural members, both interior and exterior, of the Leased Premises, in good order, condition and repair, and shall make any repairs/replacements and do such painting of the exterior as may be required. The term "repair" shall include replacements when necessary and all such "repairs" shall be equal in quality and class to the original work. Notwithstanding the foregoing, the City shall be responsible for the cost and expenses of repairs/replacements required by reason of acts or omissions of the City, the City's employees, agents, invitees, vendors, licensees or contractors.
8. The Owner shall maintain throughout the Lease Term and any renewal, insurance coverage of the proper type and amount of coverage as approved by the City's Risk manager.
9. At the request of MPD, the Owner agrees to complete the improvements listed below for an estimated cost of Ten Thousand and no/100 Dollars ($ 10,000).
a. Installation of a security system as specified by the MPD.
b. Installation of privacy screening in the existing cyclone fencing as specified by the MPD.
c. Installation of one power car hoist as specified by the MPD to be located in the warehouse area of the Leased Premises.
10. Upon the expiration or termination of the Lease, the City shall remove all personal property from the Leased Premises, and the Owner shall own all improvements made by the City to the Leased Premises.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute the lease and all additional documents that may be required to complete this transaction.