Explanation
Background: The City of Columbus, ("Landlord") though its Department of Finance and Management, entered into Lease Agreement with Directions for Youth and Families Group, Inc. ("Tenant") on June 21, 2006 for a three year lease of approximately 27,662 square feet of space located at 657 S. Ohio Avenue, Columbus, Ohio. The Lease Agreement was amended by Lease Amendment #1 to allow for an additional rental term of three years pursuant to Ordinance 0620-2009, approved by City Council on May 14, 2009.
The Lease contains an option to purchase the property for $380,000 and allows for the application of credit toward the purchase price of the cost of certain property improvements, as approved by the Department of Finance and Management, and completed by the Tenant at the Tenant's expense prior to purchase of the property. Directions for Youth and Families Group, Inc. wishes to execute its purchase option but has requested that the City amend the Lease Agreement to permit credit against the purchase price for certain approved property improvements to be completed after the purchase and transfer of the property. The Director of the Department of Finance and Management believes that this change should be granted and benefits the City by enabling Directions for Youth and Families Group, Inc. immediately exercise its purchase option and begin construction of building improvements.
Under the amended agreement, Directions for Youth and Families Group, Inc. will purchase the property at the agreed upon price of $380,000 and at closing, the City will allow the approved amount for certain property improvements to be deducted from the City's proceeds and held in escrow. Upon completion, to the City's satisfaction, of the approved property improvements, the escrowed amount will be released for payment to Directions for Youth and Families Group, Inc.
This legislation authorizes the Director of the Department of Finance and Management to enter into a Lease Amendm...
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