Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ADDENDA TO LEASES FOR SPACE AT 1769 AND 1566 GEORGETOWN ROAD FOR USE BY THE PUBLIC WORKS DEPARTMENT THROUGH JANUARY 1, 2027; AND DECLARING AN EMERGENCY.
Brief Description: The Department of Public Works currently leases space at 1769 and 1566 Georgetown Road, Hudson, OH for use as administrative office and operational space. The annual cost of these two leased spaces is $269,654.34 currently. It is necessary to continue to lease these spaces to ensure the minimal office and operational space required to carry out the responsibilities and services of the Public Works Department.
Body
Legislative History
Resolution No. 15-156, passed October 20, 2015.
Resolution No. 18-178, passed December 18, 2018.
Purpose & Explanation
The City currently leases space a 1769 and 1566 Georgetown Road. for the divisions of Service which includes streets, storm water, pipe maintenance & inspection, water distribution, administrative support, fleet maintenance and the sign shop.
Draft copies of the three (3) lease addenda are attached. (The original lease would be on file with the Clerk's office). We have maintained our lease space with three separate leases, as it is more efficient to divide and track the lease costs per budget area. The respective leased areas total square footage of approximately 36,000 sq. ft. will remain unchanged.
The last 4-year lease term 2019-2022 there was a 0% increase over 4 years. Looking at that term and the new lease terms represents an annual increase of 1.875%. annually over 8 years.
The lease term option offered is as follows:
4-Year Lease Term
6% 1st year - $285,833.60 (Current lease amount - $269,654.34)
3% 2nd year - $294,408.60
3% 3rd year - $303,240.87
3% 4th year - $312,338.10
If the City chooses to stay in the lease for only 3 years it may cancel the 4th year with 12 months written notice and 80% of the amount due for the remaining months.
Staff recommends th...
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