Explanation
Background: This ordinance is to authorize the Director of the Recreation and Parks Department to modify contract EL016677 for the lease agreement with MC-NC, LLC Company for space used for the operation of a senior center.
The Recreation and Parks Department has previously exercised the third option to renew a five-year lease agreement per Ord. #0246-2015 for 18,000 square feet of space in the Morse Center Shopping Center currently used as a senior center.
The property is located at 4665-4667 Morse Center Drive and is owned by MC-NC, LLC, a Missouri Limited Liability Company. The property has been renovated to accommodate the needs of senior center programming. The base rent is $126,000 per year, $630,000 for the life of the lease. Taxes, Common Area Maintenance (CAM) charges, and insurance add an estimated $3.00 per square foot yearly, for an additional $250,000 over the five year lease period. Taxes, insurance and CAM charges will be adjusted annually to reflect their actual costs. CAM charges include snow removal, lawn care, security system, etc. This is the final five-year option for renewal of this lease.
The current purchase order for this lease is EL016677 which covers years 2015 through 2019. Taxes, insurance, and CAM charges were underestimated at the time of creation of this purchase order for current five year term, and additionally the final year of 2014 lease and will therefore require a contract modification at this time to make these adjustments.
The taxes, insurance, and CAM charges have been adjusted for the next four years, and additionally 2014 and 2015 fees that were paid using EL016677. Additional fees due are at an estimated total cost of $140,000 over the life of this current agreement.
The Federal I.D. Number for MC-NC, LLC Company is #20-1078935.
Fiscal Impact:
$140,000.00 is required from the Special Income Tax Fund to meet the financial obligation of this lease agreement covering years 2015 through 2...
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