Explanation
Background: In 1989 the City of Columbus executed a lease with Lobby Stores, Inc. dba Nielsen's Stores to provide prepared food, beverage and sundries for the occupants of and visitors to the Municipal Court Building located at 375 S. High Street. Lobby Stores sold its interest in Nielsen's to Economy Enterprise, Inc. and in 1994 the City entered into a two-year lease including five renewal terms, each renewal being two years in length, with Economy Enterprise, Inc. dba Nielsen's Stores, for the operation of a food and sundry store on the 9th floor of the Municipal Court Building and a coffee cart in the lobby. That lease expired in October 31, 2006 and the City and Economy Enterprise Inc. agreed to a month-to-month tenancy until such time that the City and Franklin County agreed on terms for the City's new lease of the Municipal Court Building and that a new lease could be negotiated for the Nielson's Store based upon the terms of the City's lease with the County.
Economy Enterprises, Inc. sold its interest in the Nielsen Stores operation at this location, to SON Capital Investments, LLC, an Ohio limited liability company (Compliance Number 271148226. The new owner assumed the month-to-month tenancy of Economy Enterprises, Inc. SON Capital Investments has been current in its payment of rent and has improved the operation and appearance of the store and coffee cart. The ownership has expressed a strong desire to remain in this location and to work cooperatively with the City to continue to enhance service to meet the needs of both the building staff and visitors. The City desires to execute a new lease agreement for the store and coffee cart with SON Capital Investments LLC.
This legislation authorizes the Director of Finance and Management to execute those documents necessary to enter into a two year lease with SON Capital Investments, LLC, for a term beginning April 1, 2010 and ending March 31, 2012 to operate the food and sundry store located on the 9th floor and the beverage cart in the lobby of the Municipal Court Building located at 375 South High Street.
Fiscal Impact: This Lease will provide annual income to the City of $6,800 in the first lease year, and $7,200 for each subsequent year from base rent. Additional revenue may be generated by percentage rent based on all annual sales generated by the Lessee in excess of $100,000.00.
Emergency Justification: Emergency action is requested to allow the provision of food, coffee, snacks and sundry services to the building to continue without interruption.
Title
To authorize the Director of Finance and Management to execute those documents necessary to enter into a lease agreement with SON Capital Investments, LLC, dba Nielsen's Stores, to operate a food and sundry store and coffee cart at 375 S. High Street; and to declare an emergency.
Body
WHEREAS, Economy Enterprises, Inc., dba Nielsen's Stores, has operated a food and sundry shop on the 9th floor, and a coffee cart in the lobby of the property located at 375 South High Street, Columbus, Ohio, 43215, and commonly known as the Municipal Court Building; and
WHEREAS, Economy Enterprise Inc.'s interest in the Nielsen's Store located at the Municipal Court Building was sold to SON Capital Investments, LLC; and
WHEREAS, the City, now desires to enter into a new lease with SON Capital Investments, LLC dba Nielsen's Stores for operation of the food and sundries store and coffee cart; and
WHEREAS, an emergency exists in the usual daily operations of the City that it is necessary for the Director of Finance and Management to immediately enter into a lease agreement with SON Capital Investments, LLC dba Nielsen's Stores so that the occupancy can be put under a lease to ensure the continued provision of services to the Municipal Court Building staff and visitor's thereby preserving the public health, peace, property, safety, and welfare; 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 those documents, as approved by the Department of Law, Division of Real Estate, necessary to enter into a lease by and between the City of Columbus, Ohio and SON Capital Investments, LLC, dba Nielsen's Stores, to operate the food and sundry store located on the 9th floor and a coffee cart, at 375 S. High Street.
SECTION 2. That the terms and conditions of this lease shall be in a form approved by the City Attorney's office and shall include the following: the lease shall have an initial term of two years commencing on April 1, 2010 and expiring on March 31, 2012, and the lease shall have a mutual option to renew for five (5) consecutive one-year renewal terms, provided that:
i) Written notification of the renewal election is provided not less than 90 days in advance of the commencement of the renewal term, and
ii) The Lessee is not in default of any terms and conditions of the lease, and
iii) Such other terms and conditions as are required and/or approved by the City Attorney's Office.
SECTION 3. That for the 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.