Fiscal Note
The proposed resolution authorizes a 25-month extension of the lease term beginning December 1, 2026, and includes the current adjacent Expanded Leased Premises space used by the Clerk’s office for storage purposes. The lease is a modified gross lease with the Lessor paying for all utilities, common area maintenance, real estate taxes, and maintenance and repairs needed in the Leased Premises and Building. The City is paying for the following operating costs: janitorial, internet, and fire alarm and security monitoring. These City operating costs are estimated to be $4,004 for December 2026 rent, $48,048 for calendar year 2027, and $49,488 for calendar year 2028. Total lease costs are estimated to be $101,540 from December 2026 to December 2028.
Under the terms of the Third Amendment to the Lease, the current monthly Rent will increase by ten (10) percent to $4,003.88 per month for thirteen (13) months and then increase by three (3) percent to $4,124 per month for the remaining twelve (12) months of the Extended Lease Term. Rent will then increase by three (3) percent per annum for each of the Extended Renewal Option Terms, if exercised by the City.
The 2026 Adopted Budget for the Clerk's Office includes funding for this lease for December 2026. Funding for 2027 and 2028 lease costs will be included in the Clerk's operating budget requests. At this time, no additional appropriation is required.
Title
Authorizing the execution of a Third Amendment to a Lease with MESC, LLC for property located at 2713 East Washington Avenue for the continued operation of storage space. (District 12).
Body
WHEREAS, MESC, LLC (“Lessor”), is the owner of the commercial building located at 2713 East Washington Avenue (“Building”); and
WHEREAS, the Lessor and the City of Madison (“City”) are parties to that certain Lease dated December 1, 2016 and recorded on December 21, 2016 with the Dane County Register of Deeds as Document No. 5293840; as well as the “First Amend...
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