Explanation
Background: In December 2006 the City of Columbus purchased the Jerry Hammond Center, 1111 E. Broad Street. Pursuant to the authority granted by Columbus City Council Ordinance #1005-2006 and as defined in the terms of the Purchase Agreement, the City assumed all existing leases of tenants occupying space in the building. As such, the City assumed a Lease Agreement by and between Buckeye Union Insurance Company (Landlord) and Central Ohio Workforce Investment Corporation, or COWIC, (Tenant) that contained an initial term of five (5) years and included one option to renew the lease for a five-year term.
The Lease Agreement also provided the Tenant a right of "partial termination", under certain terms and conditions, allowing the tenant to reduce the amount of rentable square footage defined as its Leased Premises. The Tenant has exercised its option to renew the lease for a five-year term and to partially terminate a portion of the space defined as the Leased Premises due to a decision by Franklin County Jobs and Family Services to consolidate offices and not to renew its Sublease Agreement for a portion of the Leased Premises. This legislation authorizes the Director of Finance and Management to execute an amendment to the existing Lease Agreement to define the reduced area of the Leased Premises, revise terms of the partial termination, define the market rental rate for the renewal term, and to revise other such terms in the lease related to the adjusted size of the area of the Leased Premises. All other terms, conditions and provisions of the Lease Agreement shall remain unchanged.
Fiscal Impact: N/A
Emergency Justification: Emergency action is requested to enable the City to renew the lease without interruption.
Title
To authorize the Director of Finance and Management to execute an amendment to the current Lease Agreement with Central Ohio Workforce Investment Corporation to define the reduced area of the Leased Premises, revise terms of the partial termination, define the market rental rate for the renewal term, and to revise other such terms of the lease related to the adjusted size of the area of the Leased Premises located at 1111 E. Broad Street; and to declare an emergency.
Body
WHEREAS, in December 2006, the City assumed an existing Lease Agreement by and between Buckeye Union Insurance Company (Landlord) and Central Ohio Workforce Investment Corporation, or COWIC, (Tenant) for the lease of 61,628 square feet of office space located at 1111 E. Broad Street; and
WHEREAS, the Lease Agreement provides the Tenant an option to renew the Lease for a term of five (5) years and provides the Tenant, under certain conditions, an option for the "partial termination" of certain areas of the Leased Premises; and
WHEREAS, the Tenant has elected to renew the Lease Agreement for the five (5) year renewal term, commencing January 1, 2012 and terminating December 31, 2016, and to terminate a portion of the area of the Leased Premises due to the decision by Franklin County Jobs and Family Services to consolidate offices and not renew its Sublease; and
WHEREAS, the City and Central Ohio Workforce Investment Corporation desire to amend the Lease Agreement to define the reduced area of the Leased Premises, revise terms of the partial termination, define the market rental rate for the renewal term, and to revise other such terms of the lease related to the adjusted size of the area of the Leased Premises; now therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Finance and Management be, and hereby is, authorized to execute an amendment to the Lease Agreement for office space located at 1111 E. Broad Street, Columbus, Ohio 43215.
Section 2. That the terms and conditions of the amendment shall be in a form approved by the City Attorney's Office and shall include the following:
a) The Lease shall be amended to revise and define the area of the Leased Premises, revise the terms of the partial termination, revise such terms related to the adjusted size of the Leased Premises, and define the rent rate for the renewal term.
b) All other terms, conditions, covenants, and provisions shall remain unchanged and in full force and effect.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after its passage if the Mayor neither approves nor vetoes the same.