Fiscal Note
The original 20-year lease with Art + Literature Laboratory, Inc. was projected to generate $1.8 million of revenue for the City. As a result of COVID-related revenue reductions, the City agreed in February 2021 to delay rent increases resulting in a total revenue reduction to the City of approximately $121,000 over the course of the 20-year lease (First Amendment). This Second Amendment to the lease will further reduce total revenue to the City over the course of the 20-year lease by an additional approximately $316,000. In exchange for this reduction, Art + Literature Laboratory, Inc. agrees to make approximately $478,000 of new tenant improvements to the space beyond what was contemplated at the time the original lease was executed. As the owner of the property, the City will benefit from some of these new tenant improvements to the building should Art + Literature Laboratory, Inc. vacate the space a future date. Monthly rent is being deposited into the General Land Acquisition Fund.
Title
Authorizing the City’s execution of a Second Amendment to Lease with Art + Literature Laboratory, Inc. to amend the terms and conditions set forth for the use of the commercial space in the City-owned South Livingston Street Garage, located at 111 S. Livingston Street.
Body
WHEREAS, the Lessee and the City are parties to that certain Lease dated November 12, 2019 and recorded November 14, 2019 as Document No. 5540391 (“Lease”), amended by that certain First Amendment to Lease, dated February 4, 2021 and recorded on March 29, 2021 as Document No. 5710224 (“First Amendment”), both recorded in the office of the Dane County Register of Deeds; and
WHEREAS, the Lease pertains to a 2-story commercial space situated within a portion of the City-owned South Livingston Street Garage located at 111 S. Livingston Street, Madison, Wisconsin (“Property’), which is legally described as follows:
Lot 1, Certified Survey Map No. 14589, recorded in the Office of the Dan...
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