Title
Authorization to Amend Lease with CenturyLink Communications, LLC to Extend the Term (Ordinance S-44169)
Description
Request to authorize the City Manager, or his designee, to amend Contract 119540-OL with CenturyLink Communications, LLC to provide two additional five-year option periods. Further request authorization for the City Treasurer to accept all funds related to this item. Rent at the beginning of each five-year option period will be at the then-prevailing market rate, plus applicable taxes.
Report
Summary
CenturyLink Communications, LLC currently leases approximately 18,505 square feet, net, of interior garden level space 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. The current contract term expires June 30, 2018 with one option remaining through June 30, 2023. Contract rent during the final option period is $21.50 per square foot per year, plus applicable taxes, or $397,857.50 per year. CenturyLink is a long-term tenant in good standing at this location and requested to add two additional five-year option periods beginning July 1, 2023. Each option period will be exercised upon mutual agreement of the City and tenant. Rent at the beginning of each five-year option period will be at the then-prevailing market rate, plus applicable taxes.
Financial Impact
Revenue at the beginning of each five-year option period beginning July 1, 2023 will be at the then-prevailing market rate, plus applicable taxes. Funds pay for operating and maintenance expenses related to 2120 N. Central Ave., with the remaining net revenue used to offset Family Advocacy Center operations.
Concurrence/Previous Council Action
This contract was approved by Ordinance S-40732, adopted April 16, 2014.
Location
2120 N. Central Ave., Suites G10, G30, G31, G32
Council District: 7
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher, Deputy City Manager Deanna Jonovich, and the Human Services and Finance departments.