Fiscal Note
The 2008 rent is $5,574.00, the same per square foot building use cost as is charged to City agencies in the Madison Municipal Building. Annual rent thereafter is subject to adjustment to cover changes in the building use cost.
Title
Authorizing the Mayor and City Clerk to execute a second amendment to the lease with Madison Credit Union for the branch office space within the Madison Municipal Building.
Body
WHEREAS, the City of Madison and the Madison Credit Union (f/k/a City Employees Credit Union) ("MCU") are parties to a lease dated September 29, 1993, as amended by First Amendment to Lease dated July 29, 1999 (collectively, the "Lease"), for space within the Madison Municipal Building located at 215 Martin Luther King, Jr. Boulevard for use as a branch office by MCU; and
WHEREAS, the initial term of the Lease was for the ten (10)-year period commencing on March 1, 1992, and expiring on December 31, 2002; and
WHEREAS, the Lease was subsequently renewed for two (2) successive five year terms running from January 1, 2003 to December 31 2007 (the "First Renewal Term") and from January 1, 2008 to December 31, 2012 (the "Second Renewal Term"); and
WHEREAS, there are no renewal options remaining under the Lease; and
WHEREAS, annual rent payable under the Lease is calculated based on the same building use cost as is charged each year to City agencies in the Madison Municipal Building to cover the costs of utilities, maintenance, and custodial services; and
WHEREAS, MCU has requested that the Lease be amended to grant to MCU two (2) additional five (5)-year options to renew the Lease; and
WHEREAS, the terms of a second amendment to the Lease have been negotiated between the Real Estate Section and MCU.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute a Second Amendment to Lease with the Madison Credit Union ("MCU") pertaining to that certain lease dated September 29, 1993, as amended by First Amendment to Lease dated July 29, 1999 (collectively, the "Lease"), on the following terms and conditions:
1. The Lease may be renewed for two (2) additional five (5)-year terms upon agreement of the parties. If MCU desires to renew the Lease, MCU must give notice in writing to the City a minimum of ninety days (90) days prior to the expiration of the Second Renewal Term or subsequent renewal term. Following receipt of such notice, the City may indicate by written notice to MCU its approval or denial of MCU's request for renewal. If the City does not assent to a renewal notice within thirty (30) days following its receipt of such notice, renewal shall be deemed denied.
2. All other provisions of the Lease shall remain unchanged and in full force and effect.