Title
Resolution to Approve Renewal of Lease Agreement with 2725/2805 Associates, LLC (successor to First Industrial, L.P). for Administrative and Video Production Space for the City Community Television Network (2805 S. Industrial Highway, Ste. 200 Eisenhower Corporate Park) (8 Votes Required)
Memorandum
The attached Resolution authorizes renewal of the existing lease with First Industrial, L.P. for administrative and production space for CTN
Budget/Fiscal Impact: The necessary funding will be budgeted annually during the term of the lease. Base Rent for the first year of renewal term will be $118,345.56.
Since 2008, Community Television Network (CTN) has leased approximately 7,735 square feet of office space in the Eisenhower Corporate Park building located at 2805 S. Industrial Highway, Ste. 200 in Ann Arbor. The City’s current lease will expire on August 31, 2018. Per the terms of the lease, the City provided the necessary notice to its landlord to exercise its option to renew the terms of the lease extending the term for five years (September 1, 2018 through August 31, 2023).
The attached resolution will approve the five-year lease renewal agreement with the option for an additional five-year renewal for office space and the terms therein as described in the lease agreement for use as administrative and video production space for the City of Ann Arbor’s Community Television Network.
The Communications Office and City Administrator are requesting that City Council authorize the Mayor and City Clerk to sign the lease on behalf of the City after review and approval by the City Administrator and City Attorney.
Staff
Prepared by: Lisa Wondrash, Communications Unit Manager
Reviewed by: Mary Joan Fales, City Attorney
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor Community Television Network has leased office space in the Eisenhower Corporate Park Building located at 2805 S. Industrial Highway, Suite 200 in Ann Arbor since 2008;
Whereas, CTN’s current lease will expire on August 31, 2018, which lease terms include the option to renew the lease twice extending the term of lease first through August 31, 2023 (First Extension) and the second beginning on September 1, 2023 and ending on August 31, 2028 (Second Extension);
Whereas, The City Administration has determined it is in the best interest of the City to exercise the option to renew the lease for CTN; and
Whereas, The necessary funding for the annual rent will be budgeted each year during the term of lease renewal;
RESOLVED, That City Council approve the five-year lease agreement with 2725/2805 Associates, LLC for the term September 1, 2018 and ending August 31, 2023. with the option to further renew the lease extending its term for another five years beginning September 1, 2023 and ending August 31, 2028; and
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the lease renewal agreement(s) after approval as to substance by the City Administrator and approval as to form by the City Attorney.