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HomeMy WebLinkAbout21-172 Resolution No. 21-172 RESOLUTION AUTHORIZING EXECUTION OF A THIRD 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 Third 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: December 1, 2021 Adopted: December 1, 2021 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk THIRD AMENDMENT TO COMMERCIAL PROPERTY LEASE AGREEMENT THIS THIRD AMENDMENT AGREEMENT (hereinafter referred to as the "Third Amendment Agreement") is made and entered into as of the 1st day of December,2021,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 provided for an the initial term of the lease of 36 months, commencing on January 1, 2017, and continuing until December 31, 2019; and WHEREAS, the City and the Lessor entered into a First Amendment Agreement to the Lease Agreement dated November 20, 2019 (the "First Amendment Agreement"), wherein the City and the Lessor agreed to extend the initial term of the Lease Agreement for an additional one year term from January 1, 2020,to December 31, 2020; and WHEREAS,the City and the Lessor entered into a Second Amendment Agreement to the Lease Agreement dated October 28, 2020 (the "Second Amendment Agreement"), wherein the City and the Lessor agreed to extend the term of the Lease Agreement for an additional one year term from January 1,2021,to December 31,2021; and WHEREAS, the City and the Lessor desire to further extend the 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 further 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 Third Amendment Agreement as if fully recited hereby. 2. The effective date of this Third Amendment Agreement is January 1,2022. 3. That Paragraph 2 of the Lease Agreement is hereby further amended in its entirety to read as follows: "The Premises is leased for a term of twelve(12)months,to commence on January 1,2022, and to continue up to an including December 31, 2022." 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 1,2022,and continuing until December 31, 2022 shall be $4,052.74. The Lessee is hereby granted an option to renew and extend this Lease for one additional one-year term of January 1, 2023, to December 31,2023. The rent under any such additional term shall increase by two-percent(2%)from the immediately prior year's rent amount, effective January 1, 2023 for the 2023 calendar 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 1,2022. 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 Third Amendment Agreement,and as previously amended by the First Amendment Agreement and the Second Amendment Agreement, the terms and provisions of the Lease Agreement shall remain in full force and effect. 7. That in the event of any conflict between the terms and provisions of the Lease Agreement, as previously amended by the First Amendment Agreement and the Second Amendment Agreement, and the terms and provisions of this Third Amendment Agreement, the terms and provisions of this Third Amendment Agreement shall control. IN WITNESS WHEREOF, the City of Elgin and 164 Division, LLC, have signed this Third Amendment Agreement as of the day and year first above written. LESSEE: LESSOR: CITY OF ELGIN,an Illinois Municipal 164 Division, LLC Corporation By: (z- By: MO ntte : Its: n. I , 4,1Q ,/ ity Clerk 4/3('-‘‘d F:\Legal Dept\Agreement\164 Division LLC-Third Amendment Lease Ext Agr-10-8-21.docx 2