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File #: 2339-2019    Version: 1
Type: Ordinance Status: Passed
File created: 9/4/2019 In control: Recreation & Parks Committee
On agenda: 10/7/2019 Final action: 10/10/2019
Title: To authorize and direct the Director of Recreation and Parks to enter into an initial five-year lease with MC-NC, LLC Company to provide space for the operation of a senior center, to authorize the appropriation of $1,045,839.46 from the unappropriated balance of the Special Income Tax Fund, to authorize the expenditure of $1,045,839.46 from the Special Income Tax Fund, and to declare an emergency. ($1,045,839.46)
Attachments: 1. Gillie Lease - 2339-2019
Explanation

Background:The Department of Recreation and Parks has leased space in the Morse Centre shopping center for twenty years for use as the Gille Senior Recreation Center. The existing lease is outdated and has no renewal terms remaining thus necessitating the need for the Department to enter into a new lease agreement with MC-NC, LLC, a Delaware limited liability company, for the lease of space for the Gille Senior Recreation Center located at 4625 Morse Centre Drive. The new lease will provide for an initial term of five (5) year and include one renewal option for an additional five (5) year term. The base rent is $126,000 per year, $630,000 for the initial 5 year term of the lease. Taxes, Common Area Maintenance (CAM) charges, and insurance add an estimated $4.25 per square foot yearly, for an additional $415,839.46 over the five year lease period that includes $33,339.46 in fees from prior (5) year lease.

See Ordinance #0246-2015 and 0108-2016. Taxes and CAM charges and insurance will be adjusted annually to reflect their actual costs. CAM charges include snow removal, lawn care, security system, etc. This is a new five-year option for renewal of this lease. Current lease will expire in 2019.

The Federal I.D. Number for MC-NC, LLC Company is #20-1078935.

Principal Parties:
MC-NC, LLC, Lockbox Account FBO
German American Capital Corp. as Lender
Account # 329681160878
P.O. BOX 713805
Cincinnati, Ohio 45271-3805
Mark Clements
314-270-5991

Emergency Justification: Emergency action is requested to allow for commencement of the new lease, and to meet the schedule outlined in the lease terms.

Fiscal Impact: $1,045,839.46 is required from the Special Income Tax Fund to meet the financia...

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