HomeMy WebLinkAbout05-129Resolution No. 05-129
RESOLUTION
AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL
LEASE AGREEMENT TO UTILIZE SPACE
600 S. State Street)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock,Mayor,be and is hereby authorized and directed to execute an Intergovernmental Lease
Agreement for Building 67, Elgin Mental Health Center, 600 South State Street, on behalf of the
City of Elgin with the State of Illinois,Department of Central Management Services,a copy of which
is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: April 13, 2005
Adopted: April 13, 2005
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
N.
May 23 , 2005
MEMORANDUM
TO: Loni Mecum, City Clerk
FROM: William A. Cogley, Corporation Counsel
SUBJECT: Lease of a Portion of the Former Elgin Mental Health
Center Property
Attached for the City Clerk' s files is an original executed copy of
the city' s lease with the State of Illinois Department of Central
Management Services for Building 67 at the former Elgin Mental
Health Center property.
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Attachment
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INTERGOVERNMENTAL LEASE AGREEMENT
TO UTILIZE SPACE
Lease No.6041
The parties, the State of Illinois, acting through its Department of Central Management
Services (CMS), on behalf of the Department of Human Services, Lessee, and the City of
Elgin, hereafter called Lessor, agree to the following lease on the terms and conditions listed
below (hereinafter the "Lease").
1. PREMISES: Lessor agrees to lease to Lessee certain real property consisting
of approximately 28,000 square feet located at Building 67, Elgin Mental Health Center,
600 South State Route 31, Elgin, Illinois 60120. Such building, which is incorrectly
identified as Building 69 in that certain Agreement for Sale of Real Property between
Lessee and Lessor dated June 18, 2004, and correctly identified within the circled area of
the aerial photograph set forth in Exhibit A which is attached hereto and is made a part
hereof by this reference (hereinafter the "Leased Premises"). Lessee and Lessor agree to
share access to the Leased Premises and Lessee acknowledges and accepts any
inconveniences, delays or disruptions such shared access may cause to Lessee. Lessee
acknowledges this access may be blocked or otherwise impeded, and hence Lessee may
not be able to access the Leased Premises by automobile, on and after the expiration of
the term of this Lease.
2. TERM: The term of this Lease is for three hundred sixty-four (364) days
beginning April 15, 2005 and ending April 14, 2006. Upon expiration or termination of the
Lease term, Lessee will yield possession of the Leased Premises to Lessor.
3. RENT: Lessee agrees to pay marginal rent in the amount of $1.00 per month.
Lessor agrees to waive rent.
4. USE OF PREMISES: Lessee agrees to use the Leased Premises solely for
the purpose of conducting State of Illinois business.
5. TERMINATION: Either party may terminate this Lease upon one hundred
twenty (1Lv) ucyS iivr vvritte wtine to 16.v other flcuiI .
6. NOTICE: All notices will be sent to the following mailing addresses: Lessee,
Department of Central Management Services, Real Estate Division, Room 721, Stratton
Building, 401 S. Spring Street, Springfield, Illinois 62706 and Lessor, City of Elgin, 150
Dexter Court, Elgin, IL 60120 Attention: City Clerk with a copy to Corporation Counsel.
7. MAINTENANCE, OPERATING EXPENSES AND TAXES: Lessee shall be
responsible for all maintenance and repairs of the Leased Premises and respective
parking facilities. In addition to the maintenance, Lessee shall be responsible for all
operating expenses, utilities, janitorial services, lawn maintenance and snow removal and
any and all taxes, including but not limited to real estate taxes, if any.
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8. PARKING: Lessee shall have available for its use, parking for approximately
170 vehicles in areas referred to as the parking lot adjacent to Building 67, Northwest
corner, parallel parking on the Ring Road, and gravel parking lot Southeast corner.
9. MODIFICATION: Lessee will not make any modifications to the Leased
Premises.
10.RIGHT OF ENTRY: Lessor will have unlimited access to the Leased Premises
subject to all rights and privileges of the Lessee.
11.SECURITY: Lessee will adhere to State of Illinois and Department of Human
Services policies relating to security and emergency situations, and maintain all sentry,
life-safety systems, and monitoring of said systems.
12 SUBLEASING AND ASSIGNMENT: Lessee shall not assign or sublease its
rights under this Lease.
13.HOLDOVER: If after expiration of the Lease, Lessee retains possession of the
Leased Premises, the Lease shall continue in full force and effect on the same terms and
conditions except the Lease shall be on a month-to-month basis and Lessee shall pay
rent monthly in arrears, subject to legislative appropriation in the amount of$5,000.00 per
month.
14.LIABILITY: It is agreed and understood that the Lessor shall not be liable for
any damage or injury to any person or property caused by or resulting from the acts or
omissions of the Lessee or its agents, or caused by or resulting from steam, electricity,
gas, water, rain, ice, snow or any break or flow from or into any part of the Leased
Premises, or from any and all other damage or injuries resulting or arising from any other
cause or happening whatsoever. Lessor shall not be responsible for any defect, latent or
otherwise, in the Leased Premises, or change of conditions in the Leased Premises, or for
any damage to the same or to any person, or to goods or things contained therein, by
reason of any matter or thing whatsoever, Lessee assuming all the risk and responsibility
with reference to the present or future condition, tenantability, management, operation or
control of the Leased Premises.
15.EXECUTION. Facsimile signatures shall be sufficient for purposes of
executing, negotiating, and finalizing this Lease. This Lease may be executed and
delivered in any number of counterparts, each of which so executed and delivered shall
be deemed to be an original and all of which shall constitute one and the same
instrument.
This Lease supersedes any previous or existing agreement between the parties.
2
IN WITNESS WHEREOF, the parties have caused this instrument consisting of four (4)
pages to be made and executed by authorized parties on the dates shown below.
LESSOR LESSEE
City of Elgin State of Illinois
150 Dexter Court Department of Central Management Services
Elgin, IL 60120-5555 On behalf of the Department of Human
Services
721 Stratton Office Building
401 South Spring Street
Sprin• IlliJ' . 06
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EXHIBIT A
March 11, 2005
MEMORANDUM
TO: Mayor and Members of the City Council
Olufemi Folarin, City Manager
FROM: William A. Cogley, Corporation Counsel
SUBJECT: Lease with State of Illinois Department of Central
Management Services for Building at Elgin Mental Health
Center Property
As part of the city' s development agreement with John B. Sanfilippo
and Sons, Inc . regarding the Elgin Mental Health Center property
the city also entered into a lease with the State of Illinois
Department of Central Management Services for one of the buildings
on the subject property. Attached is a copy of the
Intergovernmental Lease Agreement between the State of Illinois
Department of Central Management Services and the city entered into
in October of 2004 .
The term of the lease is for six months beginning October 15, 2004
and ending April 14, 2005 . Rent is in the nominal amount of $1 per
month. During this time the Department of Central Management
Services was to renovate a building on the state 's remaining mental
health center property to allow for the relocation of the
activities in the subject Building 67 . If after the expiration of
the lease the state remained in possession, the tenancy would be
considered on a month-to-month basis and the rent would be in the
amount of $5, 000 per month.
Attached is a letter of March 10, 2005 from Mr. Chad Walker, Deputy
General Counsel of the Illinois Department of Central Management
Services . Such letter explains the impact of John B. Sanfilippo
and Sons Inc . ' s decision not to develop the subject property on the
Department of Central Management Services funding for the office
relocation. The state is requesting that the city enter into a new
lease agreement for the subject building for a term beginning
April 15, 2005 and expiring April 14, 2006 at a nominal monthly
rent . A mutual termination option of upon 120 days written notice
would be included to prevent any delays in the future development
of the former Elgin Mental Health Center property.
I have placed this matter for consideration on the City Council ' s
Executive Session agenda for the City Council meeting of March 23,
2005 .
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Attachments
Cc: Sean Stegall (w/att . )
OCT-20-2004 15:54 CMS Clw 000's r.ac
INTERGOVERNMENTAL LEASE AGREEMENT
TO UTILIZE SPACE
Lease No.6041
The parties, the State of Illinois, acting through its Department of Central Management
Services (CMS), on behalf of the Department of Human Services, Lessee, and the City of
Elgin, hereafter called Lessor, agree to the following lease on the terms and conditions listed
below (hereinafter the "Lease").
1.PREMISES: Lessor agrees to lease to Lessee certain real property consisting
of approximately 28,000 square feet located at Building 67, Elgin Mental Health Center,
600 South State Route 31, Elgin, Illinois 60120. Such building, which is incorrectly
identified as Building 69 in that certain Agreement for Sale of Real Property between
Lessee and Lessor dated June 18, 2004, and correctly identified within the circled area of
the aerial photograph set forth in Exhibit A which is attached hereto and is made a part
hereof by this reference (hereinafter the"Leased Premises"). Lessee and Lessor agree to
share access to the Leased Premises and Lessee acknowledges and accepts any
inconveniences, delays or disruptions such shared access may cause to Lessee, Lessee
acknowledges this access may be blocked or otherwise impeded, and hence the Lessee
may not be able to access the Leased Premises by automobile, on and after the
expiration of the Term of this Lease.
2.TERM: The term of this Lease is for six (6) months beginning October 15, 2004
and ending April 14,2005. Upon expiration of the lease term, Lessee will yield possession
of the Leased Premises to Lessor.
3.RENT: Lessee agrees to pay marginal rent in the amount of$1.00 per month.
Lessor agrees to waive rent.
4. USE OF PREMISES: Lessee agrees to use the Leased Premises solely for the
purpose of conducting State of Illinois business.
5.TERMINATION: Lessee has the option to terminate this Lease upon thirty(30)
days prior written notice to Lessor.
8.NOTICE: All notices will be sent to the following mailing addresses: Lessee,
Department of Central Management Services, Real Estate Division, Room 721, Stratton
Building, 401 S. Spring Street, Springfield, Illinois 62706 and Lessor, City of Elgin, 150
Dexter Court, Elgin, IL 60120 Attention: City Clerk with a copy to Corporation Counsel.
7.MAINTENANCE, OPERATING EXPENSES AND TAXES: Lessee shall be
responsible for all maintenance and repairs of the Leased Premises and respective
parking facilities. In addition to the maintenance, Lessee shall be responsible for all
operating expenses, utilities,Janitorial services, lawn maintenance and snow removal and
any and all taxes, including but not limited to real estate taxes, if any.
OCT-20-2004 15:55 CMS Std ting bbow r.ego
8. PARKING: Lessee shall have available for its use, parking for approximately
170 vehicles in areas referred to as the parking lot adjacent to Building 67, Northwest
corner, parallel parking on the Ring Road, and gravel parking lot Southeast corner.
9.MODIFICATION: Lessee will not make any modifications to the Leased
Premises.
10. RIGHT OF ENTRY: Lessor will have unlimited access to the Leased Premises
subject to all rights and privileges of the Lessee.
11. SECURITY: Lessee will adhere to State of Illinois and Department of Human
Services policies relating to security and emergency situations, and maintain all sentry,
life-safety systems, and monitoring of said systems.
12 SUBLEASING AND ASSIGNMENT: Lessee shall not assign or sublease its
rights under this Lease.
13. HOLDOVER: If after expiration of the Lease, Lessee retains possession of the
Leased Premises, the Lease shall continue in full force and effect on the same terms and
conditions except the Lease shall be on a month-to-month basis and Lessee shall pay rent
monthly in arrears, subject to legislative appropriation in the amount of$5,000.00 per month.
14. LIABILITY: It is agreed and understood that the Lessor shall not be liable for
any damage or injury to any person or property caused by or resulting from the acts or
omissions of the Lessee or its agents, or caused by or resulting from steam, electricity,
gas, water, rain, ice, snow or any break or flow from or into any part of the Leased
Premises, or from any and all other damage or injuries resulting or arising from any other
cause or happening whatsoever. Lessor shall not be responsible for any defect, latent or
otherwise, in the Leased Premises, or change of conditions in the Leased Premises, or for
any damage to the same or to any person, or to goods or things contained therein, by
reason of any matter or thing whatsoever, Lessee assuming all the risk and responsibility
with reference to the present or future condition, tenantability, management, operation or
control of the Leased Premises.
This Lease supersedes any previous or existing agreement between the parties.
OCT-20-2004 15:55 CMS 312 814 6664 r.
IN WITNESS WHEREOF, the parties have caused this instrument consisting of three (3)
pages to be made and executed by authorized parties on the dates shown below,
LESSOR LESSEE
City of Elgin State of Illinois
150 Dexter Court Department of Central Management Services
Elgin, IL 60120-5555 On behalf of the Department of Human
Services
721 Stratton Office Build' _•
401 Sow ' _ 'ng
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F:\Legal Dept Agreemenaease-600 S State-EMHC.doc
TOTAL P.04
MAR-10-2005 15:54 CMS 312 814 6664 P.01
ILLINOIS Rod R. Blagojevich, Governor
DEPARTMENT OF CENTRAL MANAGEMENT SERVICES
Michael M. Rumman,Director
March 10,2005
VIA FACSIMILE
Mr. William Cogley
Corporation Counsel
City of Elgin
150 Dexter Court
Elgin,IL 60120-5555
Re:Lease of Building 67 at the Elgin Mental Health Center
Dear Bill,
As you know,the City of Elgin and this Department entered into an Intergovernmental
Lease Agreement to Utilize Space on October 20, 2004 (the"Lease Agreement"). Pursuant to the
Lease Agreement,the Department of Human Services("DHS")has the right to retain its
occupancy of Building 67 of the Elgin Mental Health Center until April 14, 2005 for One Dollar
1.00)per month. The Lease Agreement was negotiated under the notion that the developer,
John B. Sanfilippo& Son,Inc. would be developing 90 acres of land surrounding the Elgin
Mental Health Center as contemplated in the Agreement for Sale of Real Property dated June 18,
2004(the"Sale Agreement"). Construction of the site was to begin in early spring of this
calendar year. However, the Department of Commerce and Economic Opportunity ("DCEO")
has informed this Department that the developer has entered into a purchase agreement to buy
and develop another site.
DCEO agreed to provide certain grants and incentives to the developer because the
project would stimulate economic growth and employment for Illinois citizens. In conjunction
with a particular incentive package offered to the developer, DCEO agreed to give this
Department$500,000 to pay our portion of the relocation of DHS's operations and employees
from Building 67. This relocation was to be complete by this spring. However,DCEO's
provision of$500,000 to this Department was contingent upon the development of the Elgin
Mental Health Center site for the purposes contemplated under the Sales Agreement.
Since the developer has decided to use another site for its industrial park,this Department
does not have the necessary funds to relocate DHS's operations and employees from Building
67. The Illinois Capital Development Board will now be requesting an appropriation in order to
complete the work during the upcoming fiscal year. We predict the relocation and renovation to
be completed no later than early spring 2006.
100 W.Randolph, Suite 4-500,Chicago, IL 60601-3274
Prfnled on Recycled Paper
MAR-10-2005 15:54 CMS 312 814 6664 P.02
Mr. William Cogley
March 10,2005
Page 2
For these reasons, we are requesting that the City of Elgin enter into a new lease
agreement for the use of Building 67 for a term beginning April 15,2005 and expiring April 14,
2006 at a nominal monthly rate. A mutual termination option upon 120 day written notice should
prevent any delays in future development of the Elgin Mental Health Center site. This would
give us sufficient amount of time to relocate DHS's operations to a temporary site and not stall
any further development of the Elgin Mental Health Center site.
Please let me know if you should need any further information to advise your City
Council with respect to our request.
Sincerely,
v4,4
Chad E. Walker
Deputy General Counsel
cc: Bruce Washington
TOTAL P.02