Fiscal Note
The current annual rental rate is $6,914.04. The annual rental rate shall increase by $900 effective 1/1/2015 due to the expansion of the Leased Premises. However, pursuant to Resolution Enactment No. RES-09-00243, File ID 13485, adopted 3/17/2009, MKC is entitled to a rent credit of $55,000, such amount being the agreed upon cost of the perimeter fence recently installed by MKC. The application of such rent credit, effective as of 1/1/14, results in a suspension of MKC’s rent payments until 2021 at which time the annual rate shall be approximately $8,503.00, subject to a 3% annual escalator thereafter.
Title
SECOND SUBSTITUTE Authorizing a third amendment to the lease between the City of Madison and Madison-Kipp Corporation for lands located within the East Rail Transportation Corridor.
Body
The City of Madison and Madison-Kipp Corporation (“MKC”) are parties to a lease dated May 18, 2000, as amended by First Amendment to Lease dated July 23, 2009, and by Second Amendment to Lease dated March 25, 2010 (collectively, the “Lease”). The Lease allows MKC to utilize a portion of the City-owned East Rail Corridor for the construction, maintenance and operation of a parking lot and drive aisle (the “Parking Improvements”), which use is ancillary to MKC’s business operations at 201 Waubesa Street (the “Abutting Property”). The original term of the Lease was for ten (10) years and MKC exercised its first renewal option for the ten (10)-year period running from January 1, 2008 through December 31, 2017 (the “First Renewal Period”). MKC has a second ten (10)-year renewal option remaining under the Lease.
MKC has made modifications to its parking lot and is constructing an accessory building for materials storage and a groundwater treatment system. As a condition of the City’s review and approval of the site plan for these improvements, the City is requiring that MKC lease and maintain the existing bio-retention basin constructed by the City, which is loc...
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