Explanation
Background: The Department of Recreation and Parks has leased space in the Morse Centre shopping center for twenty five years for use as the Gillie Senior Recreation Center. The existing lease was authorized on Ordinance 2339-2019 for five (5) years, with two (2) renewal options of five (5) years, each, with MC-NC, LLC, a Delaware limited liability company. This ordinance will authorize the first renewal, a five (5) year lease, covering the period of August 1st, 2025 through July 31st, 2030. The base rent is $135,000 per year, $675,000 for the 5-year renewal of the lease. Taxes, Common Area Maintenance (CAM) charges, and insurance add an estimated $5.50 per square foot yearly, for an additional $500,000.00 over the five-year lease period that includes $6,321.41 in fees from prior (5) year lease.
Taxes and CAM charges and insurance will be adjusted annually to reflect their actual costs. CAM charges include snow removal, lawn care, security system, etc.
Principal Parties:
MC-NC, LLC, Lockbox Account FBO
German American Capital Corp. as Lender
P.O. BOX 713805
Cincinnati, Ohio 45271-3805
Mark Clements - 314-270-5991
Contract Compliance #: 001006
Emergency Justification: Emergency action is requested to allow for commencement of the lease renewal, and to meet the schedule outlined in the lease terms.
Fiscal Impact: $1,175,000.00 is required from the Debt Retirement Fund, Special Income Tax Subfund to meet the financial obligation of this lease agreement covering years 2025 through 2030.
Title
To authorize and direct the Director of Recreation and Parks to enter into a renewal of the initial five-year lease with MC-NC, LLC to provide space for the operation of a senior center; to authorize the appropriation of $1,175,000.00 from the unappropriated balance of the Debt ...
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