Title
Authorization to Amend Lease with CenturyLink Communications, LLC (Ordinance S-45543)
Description
Request to authorize the City Manager, or his designee, to amend Contract 119540-OL with CenturyLink Communications, LLC to provide two parking lot stalls for installation of an enclosed backup power supply unit. Further request authorization for the City Treasurer to accept all funds related to this item. The rent for the parking lot stalls will be an additional $1,885 per year, for a new total base rent of $399,742.50, plus applicable taxes, for the remainder of the term.
Report
Summary
CenturyLink Communications, LLC currently leases approximately 18,505 square feet of interior space at the Family Advocacy Center, located at 2120 N. Central Ave., Suites G10, G30, G31 and G32. The lease also provides for 233 square feet of common area for an air conditioning condenser. CenturyLink is a long-term tenant in good standing at this location and requested to rent two parking lot stalls for installation of an enclosed backup power supply unit. The unit is needed to house the backup power supply equipment for their operations.
Currently, CenturyLink's base rent is $397,857.50 per year, plus applicable taxes. The rent for the parking lot stalls will be an additional $1,885 per year, for a new total base rent of $399,742.50, plus applicable taxes, for the remainder of the term. This rate is within the range of market rents as determined by the Finance Department's Real Estate Division.
Upon execution of this amendment, the new total base rent amount will be prorated and due monthly, and it will be in effect for the remainder of the current contract term, which ends June 30, 2023, with two five-year renewal options remaining. Rent at the beginning of each optional renewal period will be at the then-prevailing market rate, plus applicable taxes.
CenturyLink has provided a copy of the permit issued by the City's Planning and Zoning Department authorizing the installation of the unit. In addition, CenturyLink will comply with insurance and indemnity provisions in accordance with the current contract or other terms and conditions deemed necessary or appropriate by the City.
Financial Impact
Additional revenue will be $1,885 per year, plus applicable taxes, through June 30, 2023, and adjusted to market rent at the beginning of each extension period.
Concurrence/Previous Council Action
This contract was authorized by Ordinance S-33028 adopted June 14, 2006, and was amended by Ordinance S-40732, adopted April 16, 2014, and Ordinance S-44169 adopted Jan. 10, 2018.
Location
Family Advocacy Center, 2120 N. Central Ave., Suites G10, G30, G31, G32
Council District: 4
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Human Services and Finance departments.