Fiscal Note
The proposed resolution authorizes a 25-month extension of a lease for commercial storage space located at 2713 East Washington Ave for use by the Clerk’s office. The City has been utilizing this facility, since 2016 and has previously executed two amendments to the lease. This Third Amendment would begin on December 1, 2026, and would include the space in the original lease as well as an adjacent space added in the First Amendment to the lease.
Under the terms of the Third Amendment to the Lease, the current monthly Rent will increase by ten (10) percent to $4,004 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. 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.
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 Amendment” to the Lease dated September 30, 2020 and recorded on October 5, 2020 wi...
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