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.
____________________________________________________
Approved
as to form and legality:
________________________________
Assistant
City Attorney