Explanation
Background: In December 2006, with the City’s purchase of the Jerry Hammond Center, 1111 E. Broad Street, pursuant to the terms of the Purchase Agreement, the City assumed all existing leases of tenants occupying space in the building. Consequently, the City assumed a Lease Agreement by and between Buckeye Union Insurance Company (Landlord) and Central Ohio Workforce Investment Corporation, or COWIC, as a Tenant that contained an initial term of five (5) years and included one option to renew the lease for a five-year term. In 2011, the City entered into a first amendment of the Lease to confirm COWIC’s renewal option for a five-year term and to reduce the square footage of its Leased Premises.
Due to 2016 changes in federal workforce regulations that now require the organizational separation of responsibilities for operations and delivery of job training services from policy and governance, the original COWIC organization has been divided into two entities. The Workforce Development Board has been created as a separate entity to provide policy and governance oversight of workforce program delivery and will be located in separate leased offices. COWIC will now be responsible only for the operation of the job training centers and delivery of related services. With this change in COWIC responsibilities, the administrative and much of the meeting space on the 2nd floor of the building is no longer required. COWIC has requested that its Leased Premises be reduced, that the existing renewal term be extended until June 30, 2017, and that an additional option to renew for a four-year term be added.
This legislation authorizes the Director of Finance and Management to execute a second amendment to the existing Lease Agreement to define the reduced area of the Leased Premises and extend the current term of the Lease for six months until (January 1, 2017 - June 30, 2017), provide for an additional renewal option for a four-year term, define the rental ra...
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