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 social and educational services to Southside residents. South Side Learning and Development Center (dba SproutFive), a current tenant of the Reeb Avenue Center, ceased existence and operations at this location effective June 30, 2024. Ordinance 1898-2024 authorized 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 between August 1, 2024 and terminating on January 31, 2025. In order to continue to assist Reeb Avenue Center, the City has agreed to a rent reduction for the remainder of the lease term terminating on August 31, 2035. During this period, rent will be adjusted to $1.00 annually. Should the Tenant choose to exercise their Option to Renew, that shall commence September 1, 2035, the rent shall be negotiated at that time.
Fiscal Impact: There are not expenditures requested in connection with the lease amendment.
Emergency Action: This legislation is presented as emergency to grant a rent reduction as soon as possible to Reeb Avenue Center beginning with rent due on February 1, 2025 to help alleviate financial hardship.
Title
To authorize the Director of the Department of Finance and Management to enter into a Second Amendment to the Lease Agreement with Reeb Avenue Center; and to declare an emergency.
Body
WHEREAS, the City is the owner of certain real property located at 280 Reeb Avenue that includes a Building; and
WHEREAS, the City leases this real property and the Building to Reeb Avenue Center, a non-profit entity; and
WHEREAS, Reeb Avenue Center subleases portions of the Building to various non-profit groups providing social and educational ...
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