Fiscal Note
Under the current rental agreement the United States Postal Services pays a monthly rent of $9,028 as well as their portion of utilities (in 2015 $10k was billed). The termination of this lease on January 31st, 2016 will result in $99,308 of lost revenue in 2016.
Title
Authorizing the termination of two leases between the City and the United States Postal Service for the Capital Station Post Office space and adjacent parking at the Madison Municipal Building.
Body
The City of Madison executed two leases with United States Postal Service (USPS) (the “Lessee”) on January 1, 1989 and November 1, 1995 for its parking and retail space, respectively (individually the “Parking Lease” and “Retail Lease”-collectively the “Leases”) at the Madison Municipal Building (the “MMB”) located at 215 Martin Luther King, Jr. Boulevard. The Parking Lease is on a month-to-month term; the Retail Lease expired on October 31, 2005 and USPS’s occupancy has been on a month to month basis thereafter. The Leases can be terminated by the City by giving the Lessee 30 days written notice.
The Premises described in the Leases needs to be demolished in order to accommodate the Judge Doyle Square project and the rehab of the MMB. The loading dock area and parking stalls adjacent to the annex need to be surrendered on October 30, 2015 in order to meet the current demolition schedule. The retail space (excluding the dock) described in the Retail Lease will be allowed to operate within MMB until an expiration date of January 31, 2016, in order to accommodate USPS with the upcoming holiday season/build-out of its new space. We are asking the City to approve the use of the ramp by USPS in front of MMB subsequent to the dock demolition of the annex, to transport the mail into/out of MMB. This resolution will authorize the written notice of termination of the Leases per the terms described herein below.
NOW, THEREFORE, BE IT RESOLVED that the Common Council hereby approves the term...
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