Fiscal Note
Fiscal note pending
Title
Authorizing the Board of Health for Madison and Dane County on behalf of Public Health Madison & Dane County to Hold Over in its Current Lease at The Village on Park (Atrium Suite 2010 and SMO) Until a New Lease is Approved and Authorizing the Director of Public Health to Sign a Termination Agreement and New Lease Upon Expiration of the Holdover (2026 RES-172)
Body
Public Health Madison & Dane County, the joint City-County public health department, (“Public Health”/“Tenant”) seeks authorization to continue occupancy at The Village on Park 2300 South Park Street (“Atrium (ATR) in Suite 2010 and the South Madison Office (“SMO”) of Public Health under a holdover arrangement at the current base rental rate, to execute a termination agreement upon completion of the holdover period, and to enter into a new lease for continued use of the premises until relocation to the Park Badger redevelopment building described in Exhibit 1.
WHEREAS, the Community Development Authority of the City of Madison (“CDA”) is the owner of The Village on Park, located at 2300 South Park Street; and
WHEREAS, Public Health has been leasing space from CDA since at least 2011 for Public Health offices located in Suite number 2010 of the Atrium and Public Health’s South Madison Offices (“SMO”). CDA and the Board of Health for Madison and Dane County on behalf of Public Health Madison & Dane County are parties to a lease recorded on February 1, 2011, as Document Number 4742004 with the Dane County Register of Deeds (the “Lease”) for Atrium 2010 and SMO; Public Health offices in Suite number 2010 of the Atrium and the South Madison Office/Clinic Space; and
WHEREAS, Public Health utilizes Suite 2010 at the Atrium as office space for programs that operate within the SMO clinic space, as well as other programs housed in the suite, and Suite 2010 also serves as the primary reception area staffed during all business hours-providing coverage beyond clinic operating times-and is the location from which the Syringe Services Program (SSP) conducts its reception-based services, with SMO additionally supporting clinic operations and related program activities; and
WHEREAS, the Lease included a five-year option to extend the lease term to August 31, 2031, which Public Health did not exercise due to ongoing discussions with the CDA regarding relocation of operations to the new Park Badger redevelopment building in 2029; and
WHEREAS, the Lease expired on August 31, 2026; and
WHEREAS, under the Lease, Public Health may hold over at twice the current rental rate if the landlord does not consent to the holdover; and
WHEREAS, the Executive Director of the CDA has provided consent on behalf of the landlord for Public Health to hold over at the current base rental rate of $25,345.31 and
WHEREAS, the CDA Board has approved the holdover at the current base rental rate, thereby confirming that Public Health’s continued tenancy shall not be considered a holdover tenancy without landlord consent under Section 13.14 of the Lease; and
WHEREAS, because the holdover has been approved, Public Health shall continue to owe base rent at the current rental rate, and the doubled rental rate described in Article III of the Lease shall not apply during the approved holdover period; and
WHEREAS, the CDA and Public Health desire to enter into a new lease (“New Lease”) for continued use of the same premises (Atrium 2010 and SMO); and
WHEREAS, CDA staff and Public Health have negotiated terms for the New Lease, based primarily on the existing Lease, set forth in Exhibit 1 attached to this Resolution; and
WHEREAS, the holdover period will expire upon execution of both a termination agreement to the Lease (“Termination Agreement”) and the New Lease; and
WHEREAS, the New Lease would expire on February 28, 2029, the anticipated completion date of the Park Badger redevelopment building, and includes twelve (12) one-month renewal options to accommodate potential construction delays; and
WHEREAS, execution of the Termination Agreement and the New Lease is contingent upon approval by both the City of Madison and the Dane County Board of Supervisors.
NOW, THEREFORE, BE IT RESOLVED that the [Common Council / Dane County Board] authorizes the Board of Health for Madison and Dane County on behalf of Public Health Madison & Dane County, to hold over at the current base rental rate under the Lease at The Village on Park until a New Lease is approved; and
BE IT FURTHER RESOLVED that the Public Health Director, or their designee, is authorized to execute a Termination Agreement upon expiration of the holdover period; and
BE IT FINALLY RESOLVED that the Director of Public Health, or their designee is authorized on behalf of the Board of Health for Madison and Dane County, acting on behalf of Public Health Madison & Dane County, to execute a New Lease with the Community Development Authority of the City of Madison for continued use of office and clinic space at 2300 South Park Street for Atrium Suite 2010 & SMO, at the rental price and for the duration described above, including the 12 one-month renewal options, and any future amendments as long as budgetary authority exists for such amendments.