Fiscal Note
The proposed resolution authorizes the first amendment to the lease of CIty-owned property at 4502 Milwaukee St to The Salvation Army for the purposes of operating a family shelter. This first amendment does not propose any changes to the base annual rent of $1 per year. No additional City appropriation required.
Title
Authorizing the City’s execution of a First Amendment to Lease, pertaining to the City’s lease with the Salvation Army for the family shelter located at 4502 Milwaukee Street, for the purpose of extending the lease term and altering the maintenance provisions of the Lease. (District 3)
Body
WHEREAS, the City of Madison (“City”) is the owner of the property at 4502 Milwaukee Street consisting of 144,200 square feet of land and a 36,192 square foot building currently operating a family shelter (“Property”), as legally described in Exhibit A of the attached First Amendment to Lease (“First Amendment”); and
WHEREAS, in 2021 the City executed a lease with the Salvation Army (“Lessee”) for operation of a shelter for families experiencing homelessness and other related services thereto at the Property (the “Lease”); and
WHEREAS, the Lease was for an original term of one (1) year and in accordance with the terms of the Lease, the Lessee has exercised each of the two consecutive two (2) year Option Periods provided in Paragraph 8 of the Lease to renew the lease through April 5, 2026, and there are no remaining options to renew under the current terms of the Lease; and
WHEREAS, the City and the Lessee desire to amend the terms of the Lease to add an additional renewal Option Period of two years, and also alter the maintenance provisions of the Lease.
NOW, THEREFORE, BE IT RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute a First Amendment to Lease with the Salvation Army, substantially on the following terms and conditions:
1. Paragraph 8 of the Lease shall be amended to allow for one additional two (2) year Option Period commencing on April 6, 2026, and expiring on April 5, 2028 (“Third Option Period”).
2. Subparagraph 11.a. of the Lease shall be deleted in its entirety and replaced with the following:
The Lessee is responsible at its cost for the monitoring, inspection, testing, maintenance, routine repair and replacement of its Lessee Improvements, and the following items in the Leased Premises: interior walls and flooring; interior doors and windows, keys, exterior and interior door hardware including alarms; all telecommunications wiring, cabling, equipment and services, including but not limited to internet, telephone, video surveillance, and cable and/or satellite TV; electrical systems including but not limited to panel boards, switchgear, light fixtures (interior, exterior, and parking lot), exit lights, receptacles and switches, conduit and wiring (including underground), and emergency generator; operation and maintenance of building HVAC systems, including but not limited to Packaged Terminal Air Conditioners (PTAC) located in individual guest rooms and related controls, piping and wiring; kitchen and laundry equipment; interior plumbing system including but not limited to above grade water and sewer piping, fixtures, water heaters and softeners, grease traps, cross-connection control devices, removal of sewer blockages from toilets, sinks, and sewer lateral to point of connection with public sewer main; exterior and interior signs; personal property taxes; interior and exterior window washing/cleaning; roof gutters, downspouts; building siding; fire alarm (including monitoring) and suppression systems (including extinguishers); pest control; and all necessary related work as a result of damage caused by Lessee.
3. Subparagraph 11.j. of the Lease shall be deleted in its entirety and replaced with the following:
Lessee shall be responsible for all outdoor maintenance, including keeping the lawn mowed on a regular basis, maintaining landscaping, maintaining the parking lot, and any other related maintenance of the yards and landscape on the Property. Maintenance responsibilities for the parking lot shall include resealing, restriping, crack sealing, repairing potholes, and any other maintenance needed to provide safe, reliable access to the Building.
4. Subparagraph 13.a. of the Lease shall be deleted in its entirety and replaced with the following:
foundation; roof; underground water and sewer (excluding removal of blockages); elevator; structural portions of the Leased Premises (except interior walls); except for repairs required thereto by reason of the acts or omission of Lessee, Lessee’s employees, agents, invitees, licensees or contractors.
5. Except as expressly modified by the First Amendment, all other provisions of the Lease shall remain unchanged and in full force and effect.
BE IT FURTHER RESOLVED, that the City’s Common Council hereby authorizes the Mayor and City Clerk to take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney.