Explanation
Background: The Department of Recreation and Parks has leased space in the Morse Centre shopping center for twenty four years for use as the Gillie Senior Recreation Center. The current 5-year lease with MC-NC, LLC was approved under ordinance 2339-2019 and shall expire on July 31, 2025. 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, the original contract allocated $374,951.18 for this expense. In total the original lease contract was for the amount of $1,004,951.18. Taxes, CAM charges and insurance are adjusted annually to reflect their actual costs.
This legislation shall authorize the modification of contract PO231266 between the City of Columbus and MC-NC, LLC for the lease of 4625 Morse Centre Drive. The modification shall increase the amount of the contract by $55,000. The increase is required due to the actual costs for taxes, insurance and CAM exceeding the estimated costs for these expenses. The cost basis for the additional amount needed is based upon the average annual actual costs for taxes, insurance and CAM over the life of the contract. The new aggregate total of the contract shall be $1,059,951.18. All other terms and conditions of Contract PO231266 shall remain in effect.
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
Fiscal Impact: $55,000.00 is required from the Debt Retirement Fund to meet the financial obligation of the final year of this lease agreement.
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