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Home My WebLink About23-173 Resolution No. 23-173 RESOLUTION AUTHORIZING EXECUTION OF A FIFTH 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 Fifth 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: September 13, 2023 Adopted: September 13, 2023 Omnibus Vote: Yeas: 8 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk FIFTH AMENDMENT TO COMMERCIAL PROPERTY LEASE AGREEMENT THIS FIFTH AMENDMENT AGREEMENT (hereinafter referred to as the "Fifth Amendment Agreement")is made and entered into as of the 13th day of September , 2023, 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 thirty-six (36)months,commencing on January 1, 2017, and continuing until December 31,2019; and WHEREAS, the City and the Lessor have subsequently entered into four amendment agreements, each extending the term of the Lease Agreement for additional one-year terms; and WHEREAS, under the Fourth Amendment Agreement, the current term of the Lease Agreement terminates on December 31, 2023; 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 Fifth Amendment Agreement as if fully recited hereby. 2. The effective date of this Fifth Amendment Agreement is January 1,2024. 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, 2024, and to continue up to an including December 31, 2024." 1 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, 2024, and continuing until December 31, 2024, shall be $4,270.20. The Lessee is hereby granted an option to renew and extend this Lease for one additional one-year term of January 1,2025,to December 31,2025. The rent under any such additional term shall increase by three-percent(3%)from the immediately prior year's rent amount, effective January 1, 2025 for the 2025 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 1,2024. 5. That Lessor shall continue to monitor the roof for leaks and to make necessary or appropriate repairs as needed in accordance with Paragraph 18 of the Lease Agreement. 6. In compliance with 50 ILCS 105/3.1, that prior to the execution of this Fifth Amendment Agreement by the City the Lessor shall provide the City with a written disclosure providing the identity of every owner and beneficiary having or proposed to have any interest,real or personal, in the property that is the subject of the Lease Agreement and this Fifth Amendment Agreement, and every member, shareholder, limited partner, or general partner entitled to receive more than 7.5% of the total distributable income of any limited liability company, corporation, or limited partnership having or proposed to have any interest, real or personal, in such property. Such disclosure shall be in writing in the form as set forth in Attachment A hereto and shall be subscribed to by a member, an owner, authorized trustee, corporate official, general partner, or managing agent, or his or her authorized attorney, under oath. If the interest, stock, or shares in a limited liability company, corporation, or general partnership is publicly traded and there is no readily known individual having greater than a 7.5%interest,then a statement to that affect, subscribed to under oath by a member, officer of the corporation, general partner, or managing agent, or his or her authorized attorney, shall fulfill the disclosure statement required by this section. 7. That except as amended by this Fifth Amendment Agreement, and as previously amended by the First Amendment Agreement, the Second Amendment Agreement, the Third Amendment Agreement, and the Fourth Amendment Agreement, the terms and provisions of the Lease Agreement shall remain in full force and effect. 8. That in the event of any conflict between the terms and provisions of the Lease Agreement, as previously amended by any prior amendments thereto,and the terms and provisions of this Fifth Amendment Agreement, the terms and provisions of this Fifth Amendment Agreement shall control. SIGNATURE PAGE FOLLOWS 2 IN WITNESS WHEREOF, the City of Elgin and 164 Division, LLC, have signed this Fifth Amendment Agreement as of the day and year first above written. LESSEE: LESSOR: CITY OF ELGIN, an Illinois Municipal 164 Division, LLC Corporation By: Hy: mayor --- --- - — — ZityAet: Its: 44G �- Clerk Legal Dept\Agreement\Agr-164 Division LLC-Fifth Amendment Lease Fact-6-9-23.doex 3 AFFIDAVIT 1, �JC-l� Kttlm (name), t� �� 44uf''. (title), being first duly sworn upon oath states as follows: Affiant has personal knowledge of the facts stated herein. Per 50 ILCS105/3.1, the identities of all owners and beneficiaries having an interest in the real property commonly known as 164 Division Street, Suites 801-803,Elgin,Illinois,to be used are as follows(check applicable box(es) and complete information requested): Individual. Individual owner of the property is: Nonprofit Organization. Nonprofit organization owner of the property is . There is no individual or other organization receiving distributable income from the organization. Public Organization, including units of local government. Public organization owning the property is . There is no individual or other organization receiving distributable income from the organization. Publicly-Traded Corporation. Publicly-traded corporation owning the property is . There is no readily known shareholder entitled to receive more than 7-1/2% interest in the total distribution income of the corporation. Corporation, Partnership, Limited��tab��'ty Com ��]}�y. Co ration,par(nership, limited liability company owning the property is I►I)U,( 4y1N�n� Je�1e1 Those entitled to receive more than 7-1/2%of the total distributable income of said entity are as follows: �amx W�� /I Address , ff 2. 3. 4. 0 Land Trust or Declaration of Trust. Land trust or declaration of trust owning the property is The identity of each beneficiary of Grantor Trust is as follows: Name Address %of Interest *1. 2. 3. 4. I *IF THE INITIAL DISCLOSURES SHOW INTERESTS HELD BY ANOTHER CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, OR TRUST, THEN FURTHER DISCLOSURES SHOULD BE PROVIDED UNTIL THE NAMES OF INDIVIDUALS OWNING THE INTEREST IN THE ENTITY ARE DISCLOSED. Dated this �� a f �� , 20 P3. By: Signature je6 l" &/�! D��,� lff"q Print Name and Title ii'applicable State of Illinois ) ) SS County of & x ) Thi instrument was acknowledged before me on 20'3 by (SEAL) [4STEPHANIE SCHM]KE, t OFFICIAL SE -- `J Notary Public.State o otar Public My Commission ENovember 28. 2 y pJ�dl&,�(I M Commission Expires: f NOTE: THIS AFFIDAVIT MAY BE EXECUTED AND ACKNOWLEDGED ON BEHALF OF THE RECORD OWNER(S) BY A MEMBER, AN OWNER, AUTHORIZED TRUSTEE, CORPORATE OFFICIAL, GENERAL PARTNER, OR MANAGING AGENT, OR HIS OR HER ATTORNEY. 2