Fiscal Note
The proposed resolution authorizes a new lease to be used as the office of the City's Employee Assistance Program (EAP). The lease has an initial gross rent of $31,339 for the first lease year and increases thereafter at 3.0% annually for the 10-year initial term. The first monthly rent payment is expected to be due in September, October, or November of 2026, depending on the completion date of work to be performed by the lessor. The new lease creates additional rent costs in 2026 of up to $10,000 and will be accommodated within the EAP's existing operating budget authority.
Additionally, the City will be responsible for the cost of installing Information Technology-related hardware and equipment at the premises. Costs associated with this work are estimated to be up to $110,000. EAP's 2026 operating budget does not include funding for this work as details/costs related to the relocation were not known at the time of budget development. The EAP and Finance Department will monitor the EAP operating budget through the budget projection process. If needed, funds may be transferred to the EAP through the mid-year appropriation resolution to ensure sufficient funding is available for the IT related costs.
Title
Authorizing the City’s execution of a 10-year lease, with one 5-year renewal option, between the City of Madison and Olin Avenue LLC, for the use of Suite 105 in the building located at 122 E Olin Ave, to be used as the office of the City’s Employee Assistance Program (District 14).
Body
WHEREAS, the City’s Employee Assistance Program (“EAP”) is seeking to relocate its office from its current location to a new long-term location that will allow it to best fulfill its mission serving City of Madison employees and their families; and
WHEREAS, EAP staff have worked with City Economic Development Division staff to identify a new office location and negotiate the lease attached to this resolution as Attachment - Lease (“Lease”).
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute the Lease with Olin Avenue LLC, substantially, though not exclusively, on the terms and conditions detailed in the attached Lease.
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute, deliver and record the Lease and take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney.