Fiscal Note
This amendment will result in one less monthly lease payment of $21,354. Lease costs are currently paid from the capital project for the Fire Administration facility acquisition and build-out and the remodeling of Fire Station 1.
Title
Authorizing the execution of a First Amendment to the Lease for space within the building located at 30 West Mifflin Street for the temporary relocation of administrative space for the City of Madison's Fire Department.
Body
On November 27, 2012, the Common Council adopted Resolution No. 28316 which authorized the execution of a lease ("Lease") for space within the building located at 30 West Mifflin Street for the temporary relocation of the City of Madison's Fire Department administration offices during the construction and build out of a new Madison Fire Administration Condo Unit in the redevelopment project located at 305-309 West Johnson Street (the "Ovation"). Subsequent to the adoption of the resolution, the timeline for completion of the build-out of the Fire Administration Condo Unit has been revised which requires a change to the renewal terms provided in the Lease. Currently there are two successive three-month renewal terms (August 1, 2015 through October 31, 2015 and November 1, 2015 through January 31, 2016). Completion of the build out of the Fire Administration Condo Unit is now anticipated to be completed by the end of 2015 and the final month of the second renewal term (January 2016) is no longer required. The Lessor has agreed to an amendment to the Lease that will provide for one option renewal period that will extend the term of the Lease five (5) months from August 1, 2015 through December 31, 2015. The monthly rent provided in the Lease for the two successive renewal periods will remain the same for the amended renewal period. All other terms and condition of the Lease approved in the previous resolution will remain the same.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute a First Amendment to the Lease with Madison Real Estate Properties and Madison East Shopping Center Partners (collectively, the "Lessor") for space within the building located at 30 West Mifflin Street for the temporary relocation of Madison Fire Department Administration, subject to the following terms and conditions:
1. The "Option to Renew" provision set forth in numbered Paragraph 6 of the Lease, which provides for two (2) three (3)-month renewal options, shall be deleted in its entirety and replaced with the following:
Option to Renew. If, at the end of the original term of this Lease, the City is not in default under the terms and conditions of this Lease, then the City shall have one (1) option to extend this Lease for an additional term of five (5) months (the "Renewal Term"), under the same terms and conditions provided in the original term of this Lease, except that rent during the Renewal Term shall be as set forth below, payable on the first day of each month throughout the Renewal Term.
Renewal Term Monthly Rent
August 1, 2015 through December 31, 2015 $ 21,354.00
If the City desires to renew this Lease, the City must give notice in writing to the Lessor a minimum of sixty (60) days prior to the expiration of the original term. All notices under this Paragraph shall be given as specified in Paragraph 26 of the Lease.
2. 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 the First Amendment to the Lease and all additional documents that may be required to complete this transaction.