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HomeMy WebLinkAbout19-161 Resolution No. 19-161 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO COMMERCIAL PROPERTY LEASE AGREEMENT WITH 164 DIVISION, LLC FOR THE ELGIN ART SHOWCASE (164 Division Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a First Amendment to Commercial Property Lease Agreement with 164 Division, LLC, for the Elgin Art Showcase for the premises commonly known as 164 Division Street, Suite 801-803, Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: November 20, 2019 Adopted: November 20, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk FIRST AMENDMENT TO COMMERCIAL PROPERTY LEASE AGREEMENT THIS FIRST AMENDMENT AGREEMENT (hereinafter referred to as the "Amendment Agreement") is made and entered into as of the 20th day of November, 2019, by and between the City of Elgin, an Illinois municipal corporation (hereinafter referred to as the "City" or the "Lessee"), and 164 Division LLC, an Illinois limited liability company (hereinafter referred to as the "Lessor"). WHEREAS, the parties hereto have previously entered into a Commercial Property Lease Agreement, dated December 21, 2016 (the"Lease Agreement"),by which the Lessor leased to the City and City leased from the Lessor the space commonly known as 164 Division Street, Suites 801-803 (hereinafter referred to as the "Leased Premises") in the building located at 164 Division Street, Elgin, Illinois 60120; and WHEREAS, the Lease Agreement provides that the initial term of the lease is for 36 months, commencing on January 1, 2017, and continuing until December 31, 2019; and WHEREAS, the City and the Lessor desire to extend the initial term of the Lease Agreement, and have reached a mutual agreement with respect to the terms of such extension, as further set forth herein; and WHEREAS, the City and the Lessor have each determined that it is in their best interests to amend Lease Agreement in accordance with the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto hereby agree as follows: 1. The above recitals are incorporated into and made a part of this Amendment Agreement as if fully recited hereby. 2. The effective date of this Amendment Agreement is January 1, 2020. . 3. That Paragraph 2 of the Lease Agreement is hereby amended in its entirety to read as follows: "The Premises is leased for a term of twelve(12) months, to commence on January 1, 2020, and to continue up to an including December 31, 2020." 4. That Paragraph 3 of the Lease Agreement is hereby amended in its entirety to read as follows: "The monthly rent for the lease term commencing on January 1, 2020, and continuing until December 31, 2020 shall be $4,052.74. The Lessee is hereby granted an option to renew and extend this Lease for up to two successive one-year terms. The rent under any such additional term shall increase by two-percent(2%) from the immediately prior year's rent amount, effective January 1st for each successive year. To exercise the option to so extend this Lease, the Lessee shall provide the Lessor with written notice of its intent to exercise such option prior to October 1st of the then-current lease year. 5. That Lessor shall continue to monitor the roof for leaks and to make necessary or appropriate repairs as need in accordance with Paragraph 18 of the Lease Agreement. 6. That except as amended by this Amendment Agreement, the terms and provisions of the Lease Agreement shall remain in full force and effect. 15. That in the event of any conflict between the terms and provisions of the Lease Agreement and the terms and provisions of this Amendment Agreement, the terms and provisions of this Amendment Agreement shall control. IN WITNESS WHEREOF, the City of Elgin and 164 Division, LLC, have signed this Amendment Agreement as of the day and year first above written. LESSEE: LESSOR: CITY OF ELGIN, an Illinois 164 DIVISION, LLC Municipal Corporation By: / //,- By: Mayor Ge Attest: Its: e/ 1� 4 4 C;g ‘e4e, aeA6 City Clerk F:\Legal Dept\Agreement\164 Division LLC-First Amendment Lease Ext Agr.docx 2