Explanation
Background: The City owns real property located at 280 Reeb Avenue that is currently leased to the Reeb Avenue Center, a non-profit entity, as Tenant. Reeb Avenue Center subleases portions of the Building on the property to various non-profit groups providing various social services to Southside residents. South Side Learning and Development Center (dba SproutFive), a current tenant of the Reeb Avenue Center, will cease existence and operations at this location effective June 30, 2024. This legislation is presented as an emergency and authorizes the Director of the Department of Finance and Management to enter into a First Amendment to Lease Agreement in order to grant a six-month rent reduction to the Reeb Avenue Center. All other terms and conditions of the Lease Agreement will remain unchanged and in effect. The Reeb Avenue Center plans to sublet the space vacated by SproutFive to Columbus Early Learning Centers to provide similar childcare and early learning services for the neighborhood. There is a six-month gap before Columbus Early Learning Center begins to pay rent to Reeb. In order to assist Reeb Avenue Center during the six months that it will not receive rent for the former SproutFive space, the City has agreed to a rent reduction for a six (6) month period starting with rent due on August 1, 2024 and terminating on January 31, 2025. The base term of the current Lease expires on August 31, 2035. During this period, rent will be reduced from $1.50 per square foot to $1.00 per square foot for a total reduction in rent of $32,969.50. Beginning with the rent due on February 1, 2025, the rent shall return to the $1.50 per square foot rate for the remainder of the term of the Lease Agreement.
Fiscal Impact: The City’s rental income supporting the capital requirements for the real property will be reduced by $32,969.50.
Emergency Action: This legislation is presented as emergency to grant a rent reduction to Reeb Avenue Center beginning wi...
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