Explanation
Background: In November of 1975, the City entered into a lease agreement with the County Commissioners of Franklin County, Ohio ("County") for the rental of a building to be constructed at 375 South High Street to house the Municipal Court and known as the Franklin County Municipal Court Building. The City's initial lease term under this agreement was for a period of twenty-seven (27) years and expired in 2006. As the City and County wished to modify lease terms, the City chose not to allow the lease to automatically renew for the automatic ten-year renewal term and terminated the lease agreement. The City has been has a holdover tenant in the building during the negotiation of a new lease with terms acceptable to both parties.
The City and County have now reached agreement on all terms and wish to enter into a new lease agreement. Under the terms of the new lease agreement the City will pay to the County as annual rent, the sum of the County's actual cost of janitorial services for the City's allocated space and the pro-rated cost of building casualty insurance allocated based on the square footage of the City's occupancy.
In addition, upon the City's expenditure of an accumulated total of $30 million dollars in capital expense, but not later than December 31, 2030, the City shall have an option to take fee title to the building by payment of the Option Purchase Price as defined in the lease. The "Option Purchase Price" shall be fifteen per cent (15%) of the appraised fair market value of the Building less credits for the following:
a. $2,000,000.00 for the vacated right of way of Wall Alley and Noble Streets conveyed by Tenant to Landlord for its new courthouse, said property vacation shall be granted by Tenant to Landlord no later than sixty (60) days after the effective date of this Agreement;
b. Any un-reimbursed expense incurred by the City in connection with relocation of utilities for the new courthouse; and
c. Interest...
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