Explanation
Background: This legislation authorizes the Director of Finance and Management to execute a First Amendment to amend and extend the existing Lease Agreement with PLM Company, LLC (formerly PLM of Cols) as Landlord, for office space at 3933 Livingston Avenue and to execute a new lease with Saint Stephen Community Services, Inc. as Landlord, for office space at 1500 East 17th Avenue, both occupied by the Women, Infants and Children (WIC) program of the Department of Health. Both leases are set to expire on September 30, 2019 and the WIC program wishes to continue to provide its supplemental nutrition services to clients from these locations. Neither Agreement has any renewals remaining. The amendment to the Lease Agreement with PLM Company will add four (4) additional one-year renewal periods at the same rent rate and under the same terms and conditions as the current Agreement. Due to a change in how rent is to be calculated for the office space lease at St. Stephens, it was determined that it was best to enter into a new agreement to clarify the rent terms. The lease rate had been based on an allocation of a pro-rata share of operating expenses based on the square footage of WIC’s occupancy which proved too cumbersome for both parties to manage. The new lease will be based on a flat annual rent fee for the office space.
Fiscal Impact: Funding for the lease payments is provided by grant funds received by Columbus Public Health from the Ohio Department of Health (ODH). City funds are not required. Authorization of the expenditure for payment of rent for these renewal terms shall be requested through a separate ordinance ($0.00).
Title
To authorize the Director of Finance and Management to execute a First Amendment to the Lease Agreement with PLM Company, LLC and a lease with Saint Stephen Community Services, Inc. for office space leased at 3933 East Livingston Avenue and 1500 East 17th Avenue, respectively. ($0.00).
Body
WHEREAS, the Department of Finance and Management through its Real Estate Management Office, leases various office spaces on behalf of the Department of Health, and
WHEREAS, the Department of Health, Women, Infants and Children (WIC) wishes to provide addition renewal periods with PLM Company, LLC and that a new lease be executed with Saint Stephen Community Services, Inc. to establish a flat annual rent fee, and
WHEREAS, the Department of Finance and Management through its Real Estate Management Office has negotiated terms acceptable to the City and the Department of Health for these leases, and
WHEREAS, this ordinance only authorizes the lease agreements, with the funding for the rent that is to be paid under these leases being authorized by a separate ordinance prior to September 30, 2019; and
WHEREAS, it is necessary to authorize the Director of the Department of Finance and Management to execute, those documents necessary to amend and extend the Lease Agreement with PLM Company, LLC and to enter into a lease agreement with Saint Stephen Community Services, Inc., for the preservation of 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 a First Amendment to the Lease Agreement by and between the City and PLM Company, LLC for the lease of office space located at 3933 East Livingston Avenue, Columbus, Ohio and a Lease Agreement with Saint Stephen Community Services, Inc. for the lease of office space located 1500 East 17th Avenue, Columbus, Ohio, respectively.
SECTION 2. That the terms and conditions of the First Amendment To Lease Agreement with PLM Company, LLC shall be in a form prepared and approved by the Department of Law, Division of Real Estate, and shall include the following: the Lease Agreement shall be amended to add four (4) consecutive automatic one-year renewal terms under the same terms and conditions, including rent, with each renewal term being subject to City’s receipt of WIC grant funding and acceptance of this grant funding by an ordinance of City Council.
SECTION 3. That the terms and conditions of a Lease Agreement with Saint Stephen Community Services, Inc. shall be in a form prepared and approved by the Department of Law, Division of Real Estate, and shall include the following: the lease shall be for a one-year initial term and include four (4) consecutive automatic one-year renewal terms at the same rate as the initial term with each renewal term being subject to City’s receipt of WIC grant funding and acceptance of this grant funding by an ordinance of City Council.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.