Fiscal Note
The proposed resolution amends a leasing agreement between the City of Madison and Spring Properties, LLC. Monthly rent payable in 2019 under the subject lease is $3,841.27. The early lease termination right authorized by this resolution could eliminate that obligation for 1 - 6 months for an approximate total of $3,841 to $23,048. No City appropriation required.
Title
Authorizing the execution of a First Amendment to the Lease for office space at 121 South Pinckney Street for the Madison Area Transportation Planning Board, which Amendment shall allow the City the right of early termination of the Lease. (4th A.D.)
Body
WHEREAS, since January 2000, the City has been leasing approximately 2,378 square feet of office space at 121 South Pinckney Street for the Madison Area Transportation Planning Board - A Metropolitan Planning Organization (“MPO”), staff of which are part of the City’s Planning Division; and
WHEREAS, the MPO’s current lease with Spring Properties LLC (“Landlord”) is scheduled to expire on December 31, 2019, and the City has two 1-year renewal options remaining; and
WHEREAS, the Capital Area Regional Planning Commission (CARPC) currently occupies approximately 2,750 square feet of office space in the City-County Building (“CCB”); and
WHEREAS, for reasons of enhancing collaboration and creating efficiencies, the MPO and CARPC desire to lease office space together and operate from a shared location; and
WHEREAS, there is not an opportunity for expanded space for the two agencies at either the CCB or 121 South Pinckney Street; therefore, Office of Real Estate Services staff is assisting the MPO and CARPC staff in searching for alternative office space within the downtown core; and
WHEREAS, Real Estate staff have recently negotiated with the Landlord to allow MPO the right to terminate its lease early - at any time after June 30, 2019 - in the event the two agencies secure a lease for an alternate location and the MPO desires to relocate prior to December 31, 2019.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute a First Amendment to Lease (the “Amendment”) with Spring Properties LLC (the "Landlord"), subject to the following terms and conditions:
1. The Lease shall be amended to provide that the City may terminate the Lease for any reason effective any time after June 30, 2019 with a minimum of one hundred twenty (120) days written notice to the Landlord. The date of termination selected by the City must fall on the last day of the month.
2. The City will record the Amendment at the office of the Dane County Register of Deeds.
3. All other provisions of the Lease shall remain unchanged and in full force and effect.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute any and all additional documents that may be required to complete this transaction.