Explanation
Background: The City originally entered into a Sublease Agreement with SON Capital Investments, LLC in 2010, as approved by Ordinance #1033-2010, for the operation of a food and sundry store and coffee cart at the Municipal Court Building located at 375 S. High Street. The Sublease Agreement provided for an initial term of two (2) years with five (5) consecutive renewal terms of one (1) year. The fifth and final one year renewal term expires on March 31, 2017.
The City and SON Capital Investments, LLC now desire to amend the current Sublease Agreement to extend the term for two (2) additional consecutive six (6) month renewals; increase the monthly rent rate from $700.00 to $800.00; and, amend any other related terms as may be necessary. This amendment allows the City the opportunity to research options for this service.This ordinance authorizes the Director of Finance and Management to execute those documents necessary to enter into a First Amendment to Sublease Agreement with SON Capital Investments, Inc. to extend the term and increase the rent for the extended term.
Fiscal Impact: This ordinance authorizes the Finance and Management Director to extend an existing Sublease Agreement. No City funds will be expended, however this First Amendment to Sublease Agreement will provide income to the City of $4,800.00 for the first six-month term. This income is deposited into the general fund.
Emergency Justification: Emergency action is requested to allow for the Sublease to continue without interruption.
Title
To authorize the Director of Finance and Management to enter into a First Amendment to Sublease Agreement with SON Capital Investments, Inc. to extend the term for space leased to operate a food and sundry store and coffee cart at the Municipal Court Building, 375 S. High Street; and, to declare an emergency.
Body
WHEREAS, the City and SON Capital Investments, LLC entered into a Sublease Agreement in 2010, as approved by City Council Ordinance #1033-2010, for lease of space on the 9th floor of the Municipal Court Building for the operation of a food and sundry store and for the operation of a coffee cart in the Building Lobby; and
WHEREAS, the fifth and final renewal term of the Sublease Agreement terminates on March 31, 2017; and
WHEREAS, the City and SON Capital Investments, LLC now desire to amend the current Sublease Agreement to extend the term for two (2) additional consecutive six (6) month renewals; amend and increase the monthly rent rate from $700.00 to $800.00, and amend other related terms as may be necessary; and
WHEREAS, it is necessary to authorize the Director of Finance and Management Director of Finance and Management to execute those documents necessary to enter into a First Amendment to Sublease Agreement with SON Capital Investments, Inc. to extend the term and increase the rent for the extended term; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Finance and Management in that it is immediately necessary to authorize the Director to enter into a lease amendment with the SON Capital Investments, Inc.so that the operation of a food and sundry store and coffee cart at the Municipal Court Building may continue to serve employees and visitors without interruption thereby preserving the public health, peace, property, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management be, and hereby is authorized to execute those documents as approved by the Department of Law, Real Estate Division, necessary to enter into the First Amendment to Sublease Agreement with SON Capital Investments, LLC to extend the term of the Sublease for space to operate a food and sundry store on the 9th floor of the Municipal Court Building at 375 S. High Street, and for the operation of a coffee cart in the Building lobby, and to amend any other terms as may be necessary.
SECTION 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after it passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.