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 three amendments, has one remaining one (1) year automatic renewal commencing February 1, 2017 and terminating January 31, 2018. The Division of Fire’s central warehouse operations will move to the City’s 4252 Groves Road property upon the completion in early 2017 of site and building renovations currently under construction. Based on the estimated construction completion date for Groves Road, it is anticipated that the warehouse operation will move from Williams Road in the second quarter of 2017. Consequently the City needs only a six-month renewal rather than the one (1) year renewal term provided for in the Lease.
The City and Empire Real Estate Holdings, LLC desire to enter into a fourth amendment of the Lease to modify the one (1) year automatic renewal term to a six (6) month renewal term commencing February 1, 2017 and terminating July 31, 2017, and to establish the rent for the six-month renewal term at $68,041.75 ($3.69 per square foot) payable in two (2) equal quarterly installments of $34,020.87. All other terms, conditions, and provisions of the Lease will remain unchanged.
This legislation authorizes the Director of Finance and Management to execute a fourth amendment to the current Lease to modify the term and rent for the lease of office/warehouse space located at 2028 Williams Road, and authorizes the expenditure of $68,041.75 from the Finance and Management, Real Estate Management Office 2016 General Fund for payment of the rental cost associated with the six (6) month renewal term that begins on February 1, 2017 and terminates July 31, 2017.
Fiscal Impact: This ordinance expends $68,041.75 from the Finance and Management, Real Estate Management Office 2016 General Fu...
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