Fiscal Note
During the first year, the City shall pay an annual gross rent of $15,356.00 payable in equal monthly installments of $1,279.67. Beginning on the first anniversary of the lease and continuing each anniversary thereafter, the annual rent shall increase by 3%. Funding for monthly lease payments in 2009 is provided for in the 2009 Information Technology Adopted Operating Budget. All future year funding will be considered in subsequent Information Technology Operating Budgets. Funding for the "Lessee's Work" (as defined in the Lease), to be performed by the City at a cost of approximately $80,000, is available in IT Department Account No. CB34-58430-810593.
Title
Authorizing the execution of a lease with the Community Development Authority of the City of Madison for space within the lower level of The Villager to be used by the City's Information Technology (IT) Department.
Body
WHEREAS, the Community Development Authority of the City of Madison ("CDA") is the owner of The Villager, located at 2300 South Park Street; and
WHEREAS, the City of Madison ("City") desires to lease approximately 1,396 square feet of lower level space within The Villager for use as classroom space by the City's Information Technology (IT) Department; and
WHEREAS, terms for the lease of this space have been negotiated on behalf of the CDA and the City by staff of the Office of Real Estate Services and IT Department.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are hereby authorized to execute on behalf of the City ("Lessee"), as the lessee, a lease ("Lease") with the Community Development Authority of the City of Madison ("CDA"), as the lessor, on the following terms and conditions:
1. The Leased Premises consist of approximately 1,396 square feet and are depicted on attached Exhibit A. The Lessee will occupy and use the Leased Premises for a computer training classroom and activities related thereto.
2. The primary term of the Lease shall be five (5) years, commencing on the date that a certificate of occupancy for the Leased Premises has been issued following the completion of the "Lessee's Work" described in Paragraph 6. The Lessee shall have the option to renew the Lease for one subsequent five (5)-year term.
3. During the initial five (5) year term of the Lease, the Lessee shall pay gross rent as follows:
Lease Year |
Annual Rent |
Monthly Rent |
1 |
$15,356.00 |
$1,279.67 |
2 |
$15,816.68 |
$1,318.06 |
3 |
$16,291.18 |
$1,357.60 |
4 |
$16,779.92 |
$1,398.33 |
5 |
$17,283.31 |
$1,440.28 |
As reflected above, beginning in the second year of the Lease and continuing throughout the renewal period, if any, rent shall increase by three percent (3%) per year, compounded annually. Rent shall be payable in monthly installments, in advance, commencing on the Commencement Date and continuing on the first day of each month thereafter. Rent shall be prorated for any partial month.
4. The Lessee shall not sublet the Leased Premises or any part thereof nor assign the Lease without, in each case, the prior written consent of the CDA, which consent shall not be unreasonably withheld.
5. The CDA shall deliver the Leased Premises to the Lessee in a "grey box" condition... "Grey box" condition shall consist of open ceilings, stud walls, HVAC system with main intake and output ducts, electric service provided to a panel in the Leased Premises, and concrete floors. The CDA shall be responsible for the construction and finishing of the external walls and doors of the Leased Premises.
6. The Lessee shall, at the Lessee's expense, build out the Leased Premises and perform all additional work; supply all additional installations; and fully equip the Leased Premises with all trade fixtures, furniture, furnishings, special equipment and other items necessary for the completion of the Leased Premises and the Lessee's proper use (collectively, the "Lessee's Work"). The Lessee shall not undertake any construction, nor shall the Lessee install any equipment other than trade fixtures and personal property, without first obtaining the CDA's written approval of plans and specifications therefore.
7. The CDA shall keep the foundation; roof; electrical, heating, ventilating and air conditioning system; exterior doors; and structural portions of the walls of the Leased Premises in good condition and repair and shall make any repairs/replacements required. Notwithstanding the foregoing, the Lessee shall be responsible for the cost and expenses of repairs/replacements required by reason of acts or omissions of the Lessee, the Lessee's employees, agents, invitees, vendors, licensees or contractors. The Lessee shall give the CDA written notice of the necessity for repairs/replacements coming to the attention of the Lessee, following which the CDA shall have a reasonable time to undertake and complete such repairs.
8. The CDA shall make all repairs and replacements necessitated by any peril covered by its standard fire and extended coverage insurance policy. Should the Building be wholly or partially damaged by any cause in excess of 50% of the appraised value of the Building as established by the CDA's insurance carrier, the CDA shall have the sole option to repair or replace the structure or to demolish the entire structure at which time this Lease shall automatically terminate without liability to either party.
9. Except as provided in Paragraphs 7 and 8 above, the Lessee shall keep the Leased Premises and every part thereof, and any fixtures, facilities or equipment contained therein, in good condition and repair and in a presentable condition consistent with good business practice and in a manner consistent with the preservation and protection of the general appearance and value of other premises in the immediate vicinity.
10. The CDA shall provide janitorial services, shall pay for all real estate taxes, and shall provide and pay for all utilities including water, gas, heat, electricity, sewer, storm water, and any other utility used upon or furnished to the Leased Premises. Notwithstanding the foregoing, the Lessee shall be responsible for any telephone and data connection and usage charges.
BE IT FURTHER RESOLVED, that the Mayor and City Clerk are authorized to execute any and all documents and take whatever actions necessary to accomplish the purposes of this resolution.