Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE EXTENSION WITH JACKLIN PROPERTIES, LLC FOR OFFICE SPACE AT 115 EXECUTIVE PARKWAY, HUDSON, OHIO; AND DECLARING AN EMERGENCY.
Executive Summary: The current lease term for the Municipal Service Center office space located at 115 Executive Parkway (Westpark) will expire at the end of October 2016. Following negotiations with Jacklin Properties, City staff is recommending a three (3) year term lease extension to continue to accommodate City administrative operations and customer services.
Body
Legislative History
Resolution No. 13-08, passed on January 16, 2013.
Purpose & Explanation
The lease term for the current MSC office space expires on October 31, 2016. The facility consists of 11,248 sq. ft. which accommodates the City's administrative operations and customer services. The attached document "Exhibit A" outlines the current lease pricing and renewal pricing to extend the lease agreement for an additional three (3) year term from November 1, 2016 - October 31, 2019.
The per square foot pricing to extend the current lease agreement represents annual per square foot increases of 3%, 4%,4% respectively. Per the lease agreement rates include a portion of the lessor's real estate tax which may change the overall rate up or down. The tax amount is estimated annually and reconciled at the close of each tax year.
The overall rates for the three (3) year term extension are very competitive with comparable like office space throughout the City which are currently leasing for $14-$21 per square foot.
Timing Considerations
Staff requests emergency legislation to expedite the administration of the lease extension contract.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
_ Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council authorize the City Manager to enter into a three (3) year lease extension for office ...
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