Fiscal Note
There will be a small decrease in General Fund revenues as the annual lease rent expense will decrease from $4,338 to $2,960, or a reduction of $1,378 annually.
Title
Authorizing a first amendment to the lease between the City of Madison and Madison Gas and Electric Company for part of Railroad Street Right of Way.
Body
On October 16, 1995 the Common Council adopted a resolution (Resolution No. 52,443 ID No. 17,839) authorizing the execution of a lease (the “Lease”) between the City of Madison and Madison Gas and Electric Company (the “Lessee”) for the construction, maintenance and operation of driveway access within the Railroad Street right-of-way (shown on the attached exhibit as “Leased Premises”), which use was ancillary to the Lessee’s property located at 120 South Baldwin Street (the “Lessee’s Property”). The Lessee is concerned that under the current terms of the Lease it may lose access to the Lessee’s Property without alternate access being provided which would greatly reduce the viability of its operations at this location. In addition the Lessee is currently using a portion of the Railroad Street right-of-way outside of the Leased Premises for parking and exterior storage. The City and the Lessee have negotiated terms for an amendment to the Lease that will: (1) increase the area of the Leased Premises; (2) reset the current thirty (30) year Lease term, which is currently due to expire on March 31, 2024; (3) change the current one (1) year automatic renewal terms to three (3) automatic ten (10) year renewal terms; (4) remove a portion of the Leased Premises from the rent calculation; (5) allow parking and exterior storage on a portion of the Leased Premises; (6) increase the minimum written notice of Lease termination from the City from one hundred eighty (180) days to one (1) year; and (7) limit the discretion of the City to terminate the Lease for any transportation purposes to such time that the City improves the Leased Premises (...
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