Fiscal Note
The current annual rent payment by Madison Kipp Corp (MKC) to the City is $5,964. The existing reduction of the leased premises shall permanently reduce the annual rent by $900 effective January 1, 2009. The verified construction cost of a planned perimeter fence shall be permitted to reduce the annual rent by 100% beginning at such time that such fence construction is completed, and the 100% annual rent reduction shall continue until such annual rent reduction equals only the verified fence construction cost. The current estimate for the cost of a perimeter fence is $60,000. Under this agreement, therefore, it is anticipated that MKC's rent payments would be suspended for a period of approximately 12 years, depending on the final costs for a perimeter fence, if constructed.
Title
Authorizing an amendment to the lease between the City and the Madison-Kipp Corporation (MKC) within the East Rail Transportation Corridor that will reduce the area of the leased premises with a corresponding decrease in the annual rent and also provide for an offset of costs to construct a sound reducing fence against the annual rent.
Body
During the time of the recent construction of the new Goodman Community Center at 149 Waubesa Street, the City of Madison constructed a storm water management surface water retention facility adjacent to the East Rail Corridor Bike Path. The facility was constructed in a portion of the leased premises that the City leased to the Madison-Kipp Corporation (MKC) beginning in 1998. In order to correct the situation, it is necessary to amend the lease to remove that portion of the leased premises that the City reoccupied. The portion contains approximately 2,100 square feet and its removal equates to a permanent reduction of the annual rent of $900. During this same time period, the City also created the public street right of way now known as Waubesa Court, a necessary action to facilitate the legal land division required to create the Go...
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