Fiscal Note
The proposed resolution authorizes the execution of a first amendment to the lease for Meadowridge Library with Meadowood Baceline, LLC. The amendment authorizes a 5-year extension of the lease beginning 1/1/27 with 3 successive renewal options of two years each after the initial term. The amendment outlines a 3% increase to the rent in each year of the initial 5-year extension as well as in each year of the successive renewal options.
The costs outlined in the lease include 3,138 sq. ft. of shared space between the library and Meadowood Neighborhood Center, which is also leased by the City (operated by MSCR). The rent for Meadowood Neighborhood Center is paid through the Community Development Division's (CDD) General Fund operating budget. Madison Public Library pays 60% and CDD pays 40% of shared space costs (rent, common area maintenance (CAM), taxes).
The table below shows the increases to rent in the initial 5-year extension plus the estimated costs of CAM, taxes, and utilities for each agency. CAM, taxes, and utilities estimates are calculated as a 5% increase over the previous year.
Library 2027 2028 2029 2030 2031
Rent $101,520 $104,566 $107,703 $110,934 $114,262
CAM + Taxes + Utilities $50,969 $53,517 $56,193 $59,003 $61,953
Subtotal $152,489 $158,083 $163,896 $169,937 $176,215
CDD
Rent $12,288 $12,657 $13,037 $13,428 $13,831
CAM + Taxes $4,129 $4,335 $4,552 $4,780 $5,019
Subtotal $16,417 $16,993 $17,589 $18,208 $18,849
Total $168,907 $175,076 $181,485 $188,145 $195,065
Rent, CAM, taxes, and utilities costs will be built into the future operating budgets for the Library and CDD. No additional appropriation required.
Title
Authorizing the execution of a first lease amendment with Meadowood Baceline, LLC for the continued operation of the MEADOWRIDGE BRANCH LIBRARY at the Meadowood Shopping Center located on Raymond Road. (District 10)
Body
WHEREAS, the City of Madison (the “City”) and MLG Capital Meadowood LLC (current owner is Meadowood Baseline LLC (the “Lessor”)) are parties to a certain lease approved by the City on April 17, 2013-File No. 30958 and RES-13-00248. The lease is dated July 17, 2013 and recorded on July 17, 2013 with the Dane County Register of Deeds as Document No. 5010606 (the “Lease”); and
WHEREAS, the City and the Lessor desire to enter into a first amendment to the Lease (the “First Amendment”) to allow for the City’s continued use to operate the Meadowridge Library Branch (the “MBL”) in the commercial building known as Meadowood Plaza (the “Shopping Center”) located at 5704-5750 Raymond Road; and
WHEREAS, the MBL’s Leased Premises space totals 11,625 sq. ft-approximately 8,487 sq. ft. of space is located at 5726 Raymond Road (the “MBL Space”) and 3,138 square feet of space located at 5734 Raymond Road (the “Shared Space”). The Shared Space is used jointly by the MBL and the Meadowood Neighborhood Center (the “MNC”). The MBL and the MNC share in the payment of Base Rent and other occupancy costs relating to the Shared Space in accordance with the agreed upon MOU with MSCR, the operator of the Meadowood Neighborhood Center; and
WHEREAS, all three Options to Renew, as defined in the Lease, were exercised by the City and the Lease will expire on December 31, 2026; and
WHEREAS, the City and the Lessor have agreed to the lease terms and conditions of a First Amendment to the Lease as outlined in this resolution.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute on behalf of the City (“Lessee”) a First Amendment to the Lease agreement with Meadowood Baseline LLC on substantially, though not exclusively, the terms and conditions attached to this resolution as Exhibit I - First Amendment to Lease.
BE IT FINALLY RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute, deliver and record a First Amendment to the Lease and take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney.