Fiscal Note
The proposed resolution authorizes the extension of leases between the City of Madison and USPS for their space within the Madison Municipal Building. Under the proposed resolution the current lease will be extended at the existing rate ($9,028 monthly) through September 2016. The anticipated rental revenue from the lease extension in 2016 is $81,252.
Title
Authorizing the amendment of the expiration dates within two leases between the City and the United States Postal Service for the Capital Station Post Office retail space and adjacent parking at the Madison Municipal Building.
Body
The Common Council approved the termination of the two leases with United States Postal Service (USPS) (the “Lessee”) on September 15, 2015 by RES-15-00749, File # 39910, 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 was set to expire on October 30, 2015 due to the Judge Doyle Square project; however since the deal was terminated around said time the post office was allowed to continue its operations until the expiration of the Retail Lease. The Retail Lease was set to expire on January 31, 2016. The Leases provided for two thirty (30) day extensions which have been granted.
The Lessee is requesting that the City of Madison (the “Lessor”) move the termination dates to September 30, 2016 for the Leases so it can either build out its current space located at 702 E. Washington Avenue or analyze two new proposals for space closer to the capitol to serve its customers. The Lessee is requesting also a 30 day written termination clause, in case it can move into its new space earlier than September 30, 2016.
This resolution will authorize the change in the termination dates of the Leases per the terms described herein below.
NOW, THEREFORE, BE IT RESOLVED that the Leases for Lessee’s space located at the Madison Municipal Building are amended to expire on September 30, 2016 with no hold over.
BE IT STILL FURTHER RESOLVED that the Lessee shall have an option to terminate the Leases by providing the City of Madison with a 30 day written notice.
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to execute, deliver and record such documents and to take such other actions as shall be necessary or desirable to accomplish the purposes of this resolution.