COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 000498

Authorizing the Director of City Development to enter into an amendment to the current lease agreement with Renaissance Northeast, L.L.C., approved by Committee Substitute for Ordinance No. 990120, passed February 18, 1999, whereby the City leases office space in the former University Hospital building after its sale to Renaissance Northeast, L.L.C., to increase the term of ten years, calculate base and and tenant improvements rent based upon revised square footage figures for a new total maximum annual rent of $985,963.86 and to provide for cancellation of the sale and least under certain circumstances.

WHEREAS, Committee Substitute for Ordinance No. 990120, passed February 18, 1999, authorized the Director of City Development to enter into a lease agreement between the City and Renaissance Northeast, L.L.C. whereby the City subject to the sale of the premises to Renaissance Northeast, L.L.C., leases office space for a term of one year with nine (9) separate successive one year renewal options as to the whole premises of approximately 200,000 square feet at the rate of $450,000.00 per year; and, if all nine (9) successive options are exercised, thereafter nine (9) separate successive one year renewal options as to the improved 100,000 square feet of space, at an annual base rent of $300,000.00 per year, including, janitorial services, electrical services, water, heating and cooling for facilities located at 612-614 Garfield, Kansas City, Missouri, and authorizing the payment of tenant finishes at a rate of $250,000.00 per year; and

WHEREAS, prior to signing said proposed lease agreement, the parties have negotiated changes to the contractor sale and to certain sections of the original proposed lease agreement which call for amendments to the contract for sale and to the original lease agreement provisions; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of City Development is hereby authorized, on behalf of the City, to enter into an amendment of the original lease agreement between the City and Renaissance Northeast, L.L.C., authorized and approved by Committee Substitute for Ordinance No. 990120, duly passed February 18, 1999, to provide that the lease agreement shall be for one year, with nineteen (19) separate successive one year renewal options, with an annual base rent on the 150,769 square feet of improved space of $376,897.50 and an annual tenant finishes rent of $609,066.36 for the entire term for a total of rent of $985,963.86, with such rent to include janitorial services, electrical services, water, heating and cooling. Such rent is determined at the rate of $2.50 per foot per year for base rent plus $4.04 per square foot for tenant finishes for a total of 150,759 square feet of improved space. A copy of this first amended lease agreement is attached hereto and made a part hereof , and all said lease payments are to be made from funds to be appropriated annually.

Section 2. That the Director of the Department of City Development is authorized to enter into the First Amendment to Office Lease Agreement, and with reference to Section 26, thereof, the Director is hereby authorized at his discretion, from time to time, to further modify or amend the lease agreement in order to effect changes which do not materially alter the economic provisions thereof or the fundamental legal rights and obligations of the parties thereto in any material respect.

Such actions taken by the Director, or his designee, shall be deemed authorized by the City Council and shall fully bind the tenant City.

Section 3. That the Director of City Development is also hereby authorized, on behalf of the City, to enter into an amendment to the Real Estate Contract between the parties providing for the sale of the premises from the City to Renaissance Northeast, L.L.C., to provide that if the buyer fails to obtain a building permit for the improvements mutually agreed to be constructed on the premises within a reasonable period of time to be mutually agreed to by the parties, that the contract for sale and subsequent lease are canceled and void.

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Approved as to form and legality:

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Assistant City Attorney