Fiscal Note
The proposed resolution authorizes extending the lease for continued use of space at 29 Marsh Court by the Madison Police Department from January 1, 2026 to December 31, 2028. The annual base rent for calendar year 2026 is the same rate as calendar year 2025 as outlined in the third amendment to the lease ($79,576). The annual base rent will increase by two percent (2%) in calendar years 2027 and 2028. If the Extension Options are exercised past 2028, the annual base rent will increase by three percent (3%) per annum as reflected in the body of the resolution. The rental expense based on this fourth amendment to the lease will be included in future Police Operating Budgets beginning in 2026.
Title
Authorizing the execution of a Fourth Amendment to the Lease with Joella Enterprises, LLC allowing for the City’s continued use of space at 29 Marsh Court for the operation of the Madison Police Department evidentiary facility (District 16).
Body
WHEREAS, the Lessor and the City are parties to a certain Lease (the “Lease) pertaining to the Building and the Land defined therein, dated December 30, 2008, which Lease was recorded with the Dane County Register of Deeds on January 12, 2009 as Document No. 4492668; and
WHEREAS, the initial term of the Lease was for the four-year period commencing on January 1, 2009; and
WHEREAS, in accordance with Paragraph 7 of the Lease, the City exercised its one-year renewal option, and the term of the Lease was extended to December 31, 2013; and
WHEREAS, the Common Council authorized the execution of a First Amendment to Lease (Resolution File ID No. 31331) which was executed on November 25, 2013 and recorded with the Dane County Register of Deeds on November 27, 2013 as Document No. 5040527, which extended the term of the Lease for an additional period of three (3) years to December 31, 2016 and gave the City the option to renew the Lease for two (2) successive terms of one (1) year each; and
WHEREAS, the Common Council authorized the execution of a Second Amendment to Lease (Resolution File ID No. 39189) which was executed on July 1, 2015 and recorded with the Dane County Register of Deeds on August 5, 2015 as Document No. 5174404 that allowed the extension the term of the Lease until December 31, 2017 and gave the City the option to renew the Lease for four (4) successive terms of one (1) year each until December 31, 2021; and
WHEREAS, the Common Council authorized the execution of a Third Amendment to Lease (Resolution File ID No. 61874) which was executed on October 26, 2020 and recorded with the Dane County Register of Deeds on October 28, 2020 as Document No. 5654857 that gave the City the option to renew the Lease for four (4) successive terms of one (1) year, which were all exercised until December 31, 2025, which is the current Extended Term; and
WHEREAS, the Lease and the three amendments to it are collectively in the definition of the Lease; and
WHEREAS, the parties agreed to amend the Lease to have the Extended Term expire on December 31, 2028 and provide three (3) extension options of one (1) year each.
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Madison hereby authorizes the execution of a “Fourth Lease Amendment” to Lease with Joella Enterprises, LLC a Wisconsin limited liability company (the “Lessor”), amending the Lease executed between parties on the following terms and conditions:
1) Paragraph 2 of the Lease is amended to provide that the term of the Lease shall be extended to December 31, 2028 (the “Extended Term”).
2) The following Subparagraph is inserted in Paragraph 3 of the Lease:
g. Base Rent payable during the Extended Term shall be as follows:
Fourth Amendment Annual Base Rent Monthly Base Rent
Extended Term
1/1/2026-12/31/2026 $ 79,575.74 $ 6,631.31
1/1/2027-12/31/2027 $ 81,167.25 $ 6,763.94
1/1/2028-12/31/2028 $ 82,790.60 $ 6,899.22
3) Paragraph 7 of the Lease is amended to provide that if, at the end of the Extended Term, the City is not in default under the Lease, then the City shall have three (3) successive options to extend the Lease for additional terms of one (1) year each, under the same terms and conditions in the Lease, except that Base Rent during the renewal periods shall be as set forth in the table below, payable as provided in Paragraph 3. If the City desires to renew the Lease, the City must give notice in writing to the Lessor a minimum of one hundred fifty (150) days prior to the expiration of the Extended Term or any renewal term, by providing notice per Paragraph 22.
First Extension Option Annual Base Rent Monthly Base Rent
1/1/2029-12/31/2029 $ 85,274.31 $ 7,106.19
Second Extension Option $ 87,832.54 $ 7,319.38
1/1/2030-12/31/2030
Third Extension Option $ 90,467.52 $ 7,538.96
1/1/2031-12/31/2031
4) All other terms and conditions of the Lease shall remain in full force and effect.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute and record the Fourth Lease Amendment any and all additional documents that may be required to carry out the intent of this resolution in a form to be approved by the City Attorney.