Fiscal Note
The City is currently making master lease payments of $19,500 per month for South Madison Health and Family Center space within the Villager Mall. That cost, along with related utilities, taxes and maintenance cost, is allocated to the various participating organizations and City departments through a set of subleases and inter-departmental charges which total approximately $482,000 per year which are scheduled to expire on October 1st. This resolution authorizes the extension of these various existing Villager leases and subleases through the end of this calendar year. The extension will allow sufficient time for a more orderly renegotiation of future lease arrangements and will have no significant budgetary impact.
Title
Authorizing the Mayor and City Clerk to execute amendments to the master lease and to the various subleases pertaining to the South Madison Health & Family Center located within the Villager Shopping Center.
Body
WHEREAS, 0n December 23, 2004, the Community Development Authority ("CDA") acquired the Villager Shopping Center located at 2202-2328 South Park Street (the "Villager"), and assumed the lessor's interest in and to all of the Villager leases; and
WHEREAS, the City of Madison ("City") is the lessee of approximately 36,500 square feet of space within the Villager (the "Premises") for the South Madison Health & Family Center, pursuant to that certain lease dated February 1, 1995 (the "Master Lease"); and
WHEREAS, the City has subleased the Premises to the following non-City service providers (collectively, the "Sublessees"):
· Planned Parenthood of Wisconsin, Inc.
· Family Enhancement
· Dane County Parent Council, Inc.
· County of Dane
· Madison Community Health Center, Inc.
WHEREAS, the initial term of the Master Lease is for a ten (10)-year period that is currently scheduled to expire on October 31, 2005; and
WHEREAS, the City has the right to renew the Master Lease for two (2) successive periods of five (5) years each, with notice of renewal to be given to the CDA at least six (6) months prior to the expiration date of the Master Lease, and the Sublessees have the corresponding right to renew their respective subleases; and
WHEREAS, the deadline for both the City to exercise its first renewal option under the Master Lease and for the Sublessees to exercise their first renewal option under the subleases is April 30, 2005; and
WHEREAS, the CDA, as lessor, and the City, as lessee, both desire to extend the initial term of the Master Lease to December 31, 2005, to allow the parties time to renegotiate the terms of the Master Lease and to effectively extend the Master Lease renewal notice deadline to June 30, 2005; and
WHEREAS, the following Sublessees have indicated their desire for a corresponding extension of their respective subleases:
· Planned Parenthood of Wisconsin, Inc
· Family Enhancement
· Dane County Parent Council, Inc.
WHEREAS, the County of Dane, as a Sublessee, has declined the City's offer to extend the term of its sublease, but desires instead to amend its sublease to change the renewal notice deadline from April 30, 2005 to June 30, 2005.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute on behalf of the City, as the lessee, an amendment to the Master Lease with the Community Development Authority of the City of Madison, dated February 1, 1995, extending the initial term of said Master Lease to December 31, 2005.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute on behalf of the City, as the sublessor, amendments to the subleases with the following Sublessees extending the initial term of each sublease to December 31, 2005:
· Planned Parenthood of Wisconsin, Inc
· Family Enhancement
· Dane County Parent Council, Inc.
BE IT STILL FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute on behalf of the City, as the sublessor, an amendment to the sublease with the County of Dane changing the deadline for the County to exercise its first renewal option from April 30, 2005 to June 30, 2005.
BE IT STILL FURTHER RESOLVED that in the event Madison Community Health Center, Inc. ("MCHC") notifies the City of its desire to extend the term of its sublease, the Mayor and City Clerk shall be authorized to execute on behalf of the City, as the sublessor, an amendment to MCHC's sublease extending the initial term of said sublease to December, 31, 2005.