Fiscal Note
Rent for Parcel A shall remain at the current annual rate of $21,468.00 ($1,789.00 per month) through March 21, 2013. Effective March 22, 2013, rent for Parcel A shall be at the increased annual rate of $29,739.00 ($2,478.25 per month) and shall be subject to 2% annual increases thereafter. Rent for Parcel B (subterranean space) shall remain at the current rate of $0 per year through the original lease expiration date of March 21, 2034. Effective March 22, 2034, rent for Parcel B shall be at the increased annual rate of $9,528.14 ($794.01 per month) and shall be subject to 2% annual increases thereafter.
Title
Authorizing the Mayor and City Clerk to execute an amendment to the Ground Lease Agreement with Lincoln School Associates Limited Partnership providing for the extension of the lease term, adjustment to rent, and changes to other various provisions of the Ground Lease Agreement.
Body
WHEREAS, in 1983 the former Lincoln School building (the “Building”) located at 720 East Gorham Street was declared surplus to the needs of the City of Madison, and in 1985, based on conditions of sale established by a selection committee, the Building was sold to Lincoln School Associates Limited Partnership (“LSA”), with the condition that the land on which the Building is located would be ground leased from the City to LSA for a term of 49 years; and
WHEREAS, on March 22, 1985 the City, as the ground lessor, and LSA, as the ground lessee, entered into a Ground Lease Agreement (the “Ground Lease”) for lands consisting of Lot 2 of Certified Survey Map (“CSM”) No. 4607, together with subterranean space within a portion of Lot 3 of said CSM 4607; and
WHEREAS, Lot 2 of CSM 4607 is the lot on which the Building is located and is referred to in the Ground Lease as “Parcel A”; and
WHEREAS, the subterranean space within Lot 3 of CSM 4607 is the area reserved solely for LSA’s construction, maintenance and use of an underground parking structure to serve Parcel A an...
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