Fiscal Note
This lease amendment requires the City to pay initial annual rent for calendar year 2010 of $44,434.64, less one-time rent credit of $1,000. Rent is subject to a 3% increase every year thereafter. Funding will be included in future Planning Division operating budgets. Lease amendment results in a 5% reduction in the rent that would otherwise be payable by the City under its existing lease renewal options, resulting in a net savings of $8,228 over the next three (3) years.
Title
Authorizing the execution of a second amendment to lease with Spring Properties LLC, et al., providing for a three-year extension of the lease of office space at 121 South Pinckney Street for the Madison Metropolitan Planning Organization.
Body
WHEREAS, the City of Madison currently leases 2,378 square feet of office space in the Cantwell Building, located at 121 South Pinckney Street, for the Madison Metropolitan Planning Organization ("MPO"); and
WHEREAS, the initial term of the Lease was for the period from December 1, 2001 through December 31, 2003, and the Lease was renewed for three (3) subsequent one (1)-year periods (i.e., from January 1, 2004 through December 31, 2006); and
WHEREAS, pursuant to a First Amendment to Lease by and between the parties, dated June 28, 2006 (the “First Amendment), the term of the Lease was extended for the three (3)-year period running from January 1, 2007 through December 31, 2009 (the “First Extended Term”); and
WHEREAS, the City has three (3) options to renew the Lease for subsequent periods of one (1) year each; and
WHEREAS, the owners, Spring Properties LLC and Spring Time LLC (collectively, the ”Lessor”), have offered to extend the term of the Lease for an additional three (3) year period, with the City retaining three (3) options to renew thereafter for periods of one (1) year each; and
WHEREAS, such offer by the Lessor includes a one-time $1,000 rent credit and a 5% reduction in the rent that would otherwise be payable by th...
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