Explanation
Background: The City has leased approximately 36,879 square feet of office/warehouse space located at 2028 Williams Road since November 2002 to house the central warehouse operations of the Division of Fire. The current Lease Agreement (“Lease”), as modified by two amendments, will terminate on January 31, 2016. The Division of Fire central warehouse operations will move to 4252 Groves Road upon completion of renovations at that site. Completion of renovations at Groves Road necessary to accomodate the warehouse function have been delayed thus necessitating the need for the central warehouse to remain at Williams Road. It is projected that the warehouse operation will move to 4252 Groves Road in mid-2017 which requires that an additional renewal term to be added to the current Lease.
The City and Empire Real Estate Holdings, LLC desire to amend the current Lease to extend its term by providing for up to two (2) additional consecutive automatic one (1) year renewals under the same terms and conditions, including rent. All other terms, conditions and provisions of the Lease will remain unchanged.
This legislation authorizes the Director of Finance and Management to execute a third amendment to the current Lease to extend its term by providing for up to two (2) additional consecutive one (1) year terms for the lease of office/warehouse space located at 2028 Williams Road, and authorizes the expenditure of $108,793.04 from the Finance and Management, Real Estate Management Office 2015 General Fund budget for payment of the rental cost associated with the one (1) year renewal term that begins February 1, 2016.
Fiscal Impact: This ordinance expends $108,793.04 from the Finance and Management, Real Estate Management Office 2015 General Fund budget for the 2016 renewal term of the Lease.
Title
To authorize the Director of Finance and Management to execute those documents necessary to enter into a Third Amendment To Lease Agreement with Empire Real Estate Holdings, LLC to extend the term of the Lease for office and warehouse space located at 2028 Williams Road, and to authorize the expenditure of $108,793.04 from the General Fund. ($108,793.04)
Body
WHEREAS, the City entered into a Lease Agreement dated February 12, 2009 for the lease of approximately 36,879 square feet of office/warehouse space within a building located at 2028 Williams Road that was amended by a First Amendment To Lease Agreement, dated January 10, 2012, and further amended by a Second Amendment to Lease Agreement, dated January 28, 2014; and
WHEREAS, the City and Empire Real Estate Holdings, LLC desire to enter into a third amendment to the current Lease Agreement to extend its term by providing for up to two (2) additional consecutive one (1) year terms for the lease of office/warehouse space located at 2028 Williams Road; and
WHEREAS, funding is provided for and available in the Finance and Management, Real Estate Management Office 2015 General Fund budget for the payment of the one (1) year renewal of the Lease that begins February 1, 2016; and
WHEREAS, it is necessary to authorize the expenditure of $108,793.04 from the Finance and Management, Real Estate Management Office 2015 General Fund Budget for payment of rent for the February 1, 2016 to January 31, 2017 renewal term; now therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management be, and herby is authorized to execute those documents as approved by the Department of Law, Real Estate Division, necessary to enter into a Third Amendment To Lease Agreement with Empire Real Estate Holdings, LLC to extend the term of the Lease for office and warehouse space located at 2028 Williams Road.
SECTION 2. That the Director of Finance and Management be, and hereby is authorized to expend $108,793.04, or so much thereof that may be necessary, to pay the cost of the one (1) year renewal that begins February 1, 2016 as follows:
Division: 45-51
Fund: 010
OCA Code: 450037
Object Level 1: 03
Object Level 3: 3301
Amount: $108,793.04
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City auditor shall establish such accounting codes as necessary.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.