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 2019. Ordinance 0246-2015/EL016677 authorized $880,000.00 for years 2015 through 2019 but we are now projecting a need for $1,020,000 in total fees.
Title
To authorize and direct the Director of Recreation and Parks to modify the lease agreement with MC-NC, LLC Company for space used for the operation of a senior center, to authorize the appropriation of $140,000.00 from the unappropriated balance of the Special Income Tax Fund, to authorize the expenditure of $140,000.00 from the Special Income Tax Fund. ($140,000.00)
Body
WHEREAS, the City of Columbus desires to continue operating at 4665-4667 Morse Center Drive as a senior center facility; and
WHEREAS, it is necessary to appropriate the required funds from the unappropriated balance of the Special Income Tax Fund; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Recreation and Parks to authorize the Director to modify the contract with MC-NC, LLC, number EL016677, for additional CAM fee requirements related to the lease of the facility; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the Director of Recreation and Parks is hereby authorized and directed to modify the contract with MC-NC, LLC in the amount of $140,000.00 for the property located at 4665-4667 Morse Center Drive, for the operation of a senior center facility.
SECTION 2. That from the unappropriated monies in the Special Income Tax Fund No. 4430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2016, the sum of $140,000.00 is appropriated to the Recreation and Parks Department. *See attached appropriation template.
SECTION 3. That the expenditure of $140,000.00, or so much thereof as may be necessary, is hereby authorized from the Special Income Tax Fund No. 4430.on 51-01, as follows, to pay the cost thereof:
*Funding outlay per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.