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07-22 Resolution No. 07-22 RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT WITH THE ELGIN SYMPHONY ORCHESTRA (31 SOUTH GROVE AVENUE) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Ed Schock,Mayor,and Dolonna Mecum, City Clerk,be and are hereby respectively authorized and directed to execute a written lease agreement with Elgin Symphony Orchestra for the premises commonly known as 31 South Grove Avenue,Elgin,Illinois,a copy of which is attached hereto and made a part hereof by reference. s/Robert Gilliam Robert Gilliam, Mayor Pro Tern Presented: January 24, 2007 Adopted: January 24, 2007 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk s/Jennifer Quinton Jennifer Quinton, Deputy City Clerk 11/30/06 COM IIERCIAL LEASE AGREEMENT THIS LEASE is made and entered into this day of �CP� , 2006, by and between the -�l City of Elgin, an Illinois municipal corporation (hereinafter referred to as the "Lessor"), and the Elgin Symphony Orchestra, an Illinois not-for-profit corporation (hereinafter referred to as "Lessee"), and constitutes a Lease between the parties of the Premises as identified in the Basic Lease Provisions below, on the terms and conditions and with and subject to the covenants and agreements of the parties hereinafter set forth. WITNESSETH: 1. Basic Lease Provisions The following are certain lease provisions which are part of,and,in certain instances,referred to,in subsequent provisions of this Lease: Term of Lease: Beginning January 1, 2007 and ending June 30,2008,unless otherwise terminated as provided herein. Lessor's Name and Address: City of Elgin 150 Dexter Court, Elgin, Illinois 60120-5555 Lessee's Name and Address: Elgin Symphony Orchestra 31 South Grove Avenue, Elgin, Illinois 60120 _. Building: 31 South Grove Avenue, Elgin, Illinois Premises to be Leased within Building: Those portions of(1)the first floor of the Building consisting of approximately 1,700 square feet and (2) the area of the basement storage area in the Building consisting of approximately 1650 square feet that have been identified as "ESO Office Space" and"ESO Storage Space" as depicted in Exhibit A, dated November 8, 2006, consisting of two pages attached hereto and incorporated into this Agreement. Rent: None. Permitted Use: General office. purposes in first floor area. General office related storage in basement storage area. Security Deposit: None. 2. Grant Premises. Lessor is leasing the area depicted on Exhibit A to this Lease within the commercial office building commonly known as 31 South Grove Avenue, Elgin, Illinois (hereinafter referred to as the"Premises") to Lessee in consideration of the rent to be paid and the covenants to be performed by Lessee. 3. Rent Lessee will not be required to pay to the Lessor any monetary rent under the terms of this Lease. . 4. Conduct of Business by Lessee Use of Premises. Lessee shall use and occupy the Premises during the continuance of this Lease solely for the Permitted Use set forth in the Basic Lease Provisions, and for no other purpose or purposes without the prior written consent of Lessor.If any governmental license or permit shall be required for the proper and lawful conduct of Lessee's business or other activity carried on in the Premises or if a failure to procure such a license or permit might or would,in any way,affect Lessor or the Premises,then Lessee,at Lessee's expense,shall procure and maintain such license or permit. Lessee shall promptly comply with all laws and ordinances and lawful orders and regulations affecting the Premises and the cleanliness, safety, occupancy, and use of same. Lessee agrees that it will conduct its business in the Premises in a lawful manner and in good faith. Lessee shall not cause or permit the use, generation, storage, or disposal in, on, or about the Leased Premises or the Premises of any substances, materials, or wastes subject to regulation under any Federal, state, or local laws from time to time in effect concerning hazardous, toxic, or radioactive materials. Care of Premises. Lessee shall keep the Premises (including the service areas adjacent to the Premises, windows, and signs) orderly, neat, safe, and clean. 5. Alterations; Lessee and Lessor Alterations Lessee may make interior revisions to the Premises, subject to all applicable code regulations and prior written approval of Lessor,which approval shall not be unreasonably withheld.All alterations, decorations, additions, and improvements made by Lessee shall be deemed to have attached to the leasehold and to have become the property of Lessor upon such attachment, and upon expiration of this Lease, Lessee shall not remove any of such alterations, decorations-, additions, and improvements, except trade fixtures installed by Lessee may be removed if all rents due herein are paid in full and Lessee is not otherwise in default hereunder. Prior to commencing any renovation work approved by-Lessor, Lessee shall procure certificates of insurance from all contractors and subcontractors showing general liability and worker's compensation coverage and naming Lessor as an additional insured.Lessee shall in any event be responsible for repairing any damage caused to the Premises by virtue of any unauthorized alteration,addition,or improvement installed by or on behalf of Lessee. 2 6. Signs Lessee agrees not to use any advertising media without first receiving written approval from the Lessor. All signage shall be professionally prepared and Lessee further agrees to maintain any such sign,awning,canopy,decoration,lettering,advertising matter,or other thing,as may be approved,in good condition and repair at all times. 7. Maintenance of Leased Premises Lesssor shall provide at its cost for the maintenance of the Premises. Notwithstanding the foregoing, -in the event any maintenance or repairs are necessary for any damage to the Premises caused by an act of omission of the Lessee and/or its officers,employees,agents and/or invitees,the costs to repair such damage shall be paid for by the Lessee. Additionally,Lessee shall at its cost keep and maintain the Premises in a clean, sanitary and safe condition in accordance with all applicable legal requirements. Lessee further-agrees to comply with any and all requirements of the insurance underwriters insuring the Premises. Lessor also shall maintain the exterior of the Building as well as the Building's mechanical systems and its exterior and interior common areas. 8. Insurance As additional rent for the Premises,Lessee shall procure and maintain policies of insurance written in occurrence form, at its own cost and expense, insuring: A. Lessor and Lessee from all claims,demands or actions for injury to or death of any person in an amount of not less than $1,000,000.00, for injury to or death of more than one person in any one occurrence and an umbrella liability policy in an amount of not less than $1,000,000.00, and for damage to property in an amount of not less than$500,000.00 made by, or on behalf of, any person or persons, firm or corporation arising from, related to or connected with the Premises. B. Lessee from all worker's compensation claims. C. All contents,and Lessee's trade fixtures,machinery,equipment, furniture and furnishings in the Premises to the extent of at least ninety pgrcent (90%) of their replacement cost under standard fire and extended coverage insurance,including,without limitation,vandalism and malicious mischief. The aforesaid insurance shall be in companies and in form, substance and amount(where not stated above)satisfactory from time to time to Lessor.The aforesaid insurance shall not be subject to cancellation except after at least thirty (30) days prior written notice to Lessor.The original insurance policies(or certificate thereof satisfactory to Lessor) together with satisfactory evidence of payment of the premiums thereon, shall be deposited with Lessor at the beginning date of this Lease,and renewals thereof not less than 3 thirty (30) days prior to the end of the term of each such coverage. Lessee shall provide Lessor with a Certificate of Insurance naming Lessor as an additional insured party indicating the above coverage on an annual basis. 9. Covenant to Hold Harmless To the fullest extent permitted by law,Lessee agrees to indemnify,defend and hold harmless Lessor, its officers, employees, boards and commissions from and against any and all claims, suits judgments,costs, attorney's fees,damages or other relief arising out of or resulting from or through or alleged to arise out of any reckless or negligent acts or omissions of Lessee's officers,employees or agents in the performance of this agreement. In the event of any action against the Lessor, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the choosing. The provisions of this section shall survive any expiration and/or termination of this Lease. 10. Utility Charges Lessor shall be solely responsible for and promptly pay all charges for water, gas, heat, electricity, sewer, and any other utility used upon or furnished to the Premises,provided,however,that Lessee shall be solely responsible for the provision and payment of telephone services for the Premises. 11. No Assignment or Subletting Lessee agrees not to assign or in any manner transfer this Lease or any estate or interest therein without the prior consent of Lessor, and not to sublet the Premises or any part or parts thereof or allow anyone to come in with,through,or under it without like consent.It is understood and agreed that Lessor's consent hereunder (and wherever else in this Lease required, unless specifically provided to the contrary) may be arbitrarily withheld, notwithstanding any statutory or other provisions of law to the contrary. 12. Waste and Nuisance Lessee shall not commit or suffer to be committed any waste upon the Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other Lessee in the Building.Lessee shall not use or permit to be used any medium that might constitute a nuisance,such as loudspeakers, sound amplifiers,phonographs,radios,televisions,or any other sound producing device which will carry sound qutside the Premises. 13. Destruction of Leased Premises In case the Premises shall be rendered untenable by fire, explosion or other casualty,Lessor may,at its option,terminate this Lease or repair the Premises within sixty days.If Lessor does not repair the Premises within said time,or the Building shall have been wholly destroyed,the term hereby created by the Lease shall cease and determine. 4 14. Eminent-Domain If the whole of the Premises hereby leased shall-be taken by any public authority under the power of eminent domain, or by deed in lieu thereof, then the term of this Lease shall cease as of the day possession shall be taken by such public authority and the.Rent and other charges due hereunder, shall be paid up to that day with a proportionate refund by Lessor of such rent as may have been paid in advance.for a period subsequent to the date of the taking. If less than the whole of the Premises shall be taken under eminent domain, Lessor shall have the right either to terminate this Lease and declare same void,or require Lessee to continue in the possession of the remainder of the Premises if such can reasonably be accomplished. Lessor shall notify Lessee in writing within twenty(20)days after such taking of Lessor's intention.If the Lessee is to remain in possession,all of the terms herein provided shall continue in effect,(except that the Fixed Minimum Annual Rental shall be reduced in proportion to the amount of the Premises,if any,taken.)All damages awarded for such taking under the power of eminent domain,whether for the whole or a part of the Premises,shall belong to and be the property of Lessor whether such damages shall be awarded as compensation for diminution in value to the leasehold or to the fee of the Premises. The Lessee may pursue its own claims for damages with the appropriate government authority so long as same does not interfere with,or in any manner diminish, the award of Lessor. 15. Default of the Lessee Definition of Event of Default. Each of the following shall be deemed an event of default: (i) Lessee's failure to make payment of rent or other charges as provided in this Lease; (ii) Lessee's failure to perform any of the covenants, terms, conditions; or provisions of this Lease; (iii) if a petition is filed by or against Lessee for relief under the bankruptcy laws, or Lessee shall make an assignment for the benefit of creditors, or if a receiver of any property of the Lessee be appointed in any action, suit, or proceeding by or against Lessee,or if Lessee shall admit that it is insolvent,or it is generally not paying its debts as such debts become due,or if the interest of Lessee in the premises shall be sold under execution or other legal process, or if Lessee shall abandon the premises; (iv) Lessee vacates or abandons the premises; (v)this Lease or the Premises or any part of the Premises are taken upon execution or by other process of law directed against Lessee, or are taken upon or subject to any attachment at the instance of any creditor or claimant against Lessee,'and the attachment is not discharged or disposed of within fifteen (15) days after its levy; (vi) Lessee is dissolved.Notwithstanding anything herein to the contrary,Lessee shall not be entitled to more than one (1) notice for monetary defaults during any twelve (12)month period, and if after such notice any rent is not paid when due,an event of default will be considered to have occurred without further notice.Upon the occurrence of an event of default,Lessor shall have the right to terminate the Lease and shall be entitled to possession of the Premises. Lessor may make its election to terminate known to Lessee by delivery of a notice of termination.Such termination shall be immediately effective and Lessor shall be entitled to forthwith commence an action in summary proceedings to recover possession of the Premises, but such termination shall not terminate Lessee's liabilities hereunder. Lessee waives all notice in connection with such termination, including by way of illustration, but not limitation, notice of intent to terminate, demand for possession or payment, and notice of re-entry.No receipt of money by the Lessor from the Lessee after the termination of this Lease shall 5 reinstate, continue, or extend the term, nor affect or waive any notice given by the Lessor to the Lessee prior to such receipt of money. Right to Re-Enter. If the event of default is for the nonpayment of rent, Lessor may, as an alternative to terminating the Lease, serve a notice for possession or payment. Unless the rent, additional rent,and any other amounts due under this Lease are paid in accordance with the demand for possession or payment, Lessor shall be entitled to possession of the Premises and Lessee shall have no further right to possession under the Lease, but Lessee shall not be relieved of any of its liability hereunder.Lessee shall remain liable to Lessor for the payment of all rent and other charges which Lessee has agreed to pay under this Lease throughout the remainder of its term.Should Lessor elect to re-enter, as herein provided, it may from time to time,without terminating this Lease,make such alterations and repairs as may be necessary in order to relet the Premises, and relet said Premises or any part thereof for such term or terms(which may be for a term extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as Lessor in its sole discretion may deem advisable. Notwithstanding anything herein to the contrary, Lessor may, without demand or notice, re-enter and take possession of the Premises or any part of the Premises,repossess the same,expel Lessee'and those claiming through or under Lessee,and remove the effects of both or either, using such force for such purposes as may be necessary,without being liable for prosecution,without being deemed guilty of any manner of trespass,and without prejudice to any remedies for arrears of amounts payable under this Lease or as a result of any preceding breach of covenants or conditions. Other Remedies. The Lessor's rights, remedies, and benefits provided by this Lease shall be cumulative, and shall not be exclusive of any other rights, remedies and benefits allowed by law. Estoppel. The parties agree that they shall rely solely upon the terms of this Lease to govern their relationship. They further agree that reliance upon any representation, act, or omission outside the terms of this Lease shall be deemed unreasonable,and shall not establish any rights or obligations on the part of either party. Independent Covenant.Notwithstanding anything to the contrary,Lessee acknowledges and agrees that its obligation to pay rent under this Lease is an independent covenant,and that such obligation to pay rent is not subject to set-off or recoupment in connection with any action for summary proceedings to recover possession of the Premises. 16. Bankruptcy or Insolvency P Y Y In the event that a trustee is appointed for Lessee or by Lessee as Debtor-in-Possession, Lessee is liquidated or files a subsequent petition for reorganization or adjustment of debts under the Bankruptcy Code,Lessee be adjudicated a bankrupt,insolvent,or placed in receivership,or should any proceedings be instituted by or against the Lessee for bankruptcy, insolvency, receivership, agreement of composition,or assignment for the benefit of creditors,or if this Lease or the estate of the Lessee hereunder shall pass to another by virtue of any court proceedings,writ of execution,levy, sale or by operation of law,then, and in any of such events,Lessor may, at its option,terminate this Lease and all rights of Lessee hereunder,by giving five(5)days Notice of its election to so terminate 6 to Lessee, or to any trustee,receiver, assignee, or other person in charge of or acting as custodian of the assets or property of the Lessee. Upon the giving of such Notice, this Lease and the term hereof shall end on the date fixed in such Notice, or if no such date is fixed, five (5) days following the proper dispatch of such Notice, and the Lessor shall have the right to remove all persons, goods, fixtures, and chattels from the Premises by force or otherwise,without liability for damages,and all the other rights permitted under this Lease in the event of a default. 17. Access By Lessor Lessor or Lessor's agent shall have the right to enter the Premises at all reasonable times to examine same, and to show them to prospective purchasers or mortgagees, and to make such repairs, alterations, improvements,or additions as Lessor may deem necessary or desirable. 18. Miscellaneous Voluntary Termination of Lease by Lessor. Lessor may at its sole discretion,notwithstanding any provision herein, terminate this Lease in the event Lessor executes with a bona fide purchaser a contract to sell or otherwise convey the Building,provided,however,that Lessor first provide ninety (90) days written notice to Lessee to vacate the Premises. Waiver. One or more waivers of any covenant,term, condition, or provision of the Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term, condition, or provision, and the consent or approval by Lessor to or of any act by Lessee requiring Lessor's consent or approval shall not be deemed a waiver of Lessor's consent or approval to or of any subsequent similar act by Lessee.No breach of a covenant,term,condition,or provision of this Lease shall be deemed to have been waived by Lessor,unless such waiver(i)is in writing signed by Lessor, (ii)identifies the breach, and(iii)expressly states that it is a waiver of the identified breach. Observance of Lessor's Rules and Regulations. Lessee shall keep and observe such reasonable rules and regulations now or hereafter required by Lessor,which may be necessary for the proper and orderly care of the Premises and the Building. No Partnership.Nothing contained in this Lease shall be deemed or construed by the parties hereto, nor by any third party,as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto. Construction. Whenever herein the singular number is used,the same shall include the plural,and the masculine gender shall include the feminine and neuter genders.The captions,section numbers, article numbers,and index appearing in this Lease are inserted only as a matter of convenience and in no way define, limit, construe, or describe the scope or intent of such sections or articles of this Lease nor in any way affect this Lease. Notice. Any notice, demand, request, consent, approval, or other instrument which may be or is required to be given under this Lease shall be sent by overnight courier or United States certified 7 mail return receipt requested, postage prepaid, and shall be addressed to the addresses and persons set forth hereunder: Michael Pastreich Olufemi Folarin Executive Director City Manager Elgin Symphony Orchestra 150 Dexter Court 31 S. Grove Avenue Elgin, IL 60120-5555 Elgin, IL 60120 Recording.Lessee shall not record this Lease without the consent of Lessor,which maybe withheld .for any reason whatsoever, in Lessor's absolute discretion. Governing Law.This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois. Partial Invalidity. If any provision of this Lease or the application thereof to any person or circumstances shall,to any extent,be invalid or unenforceable,the remainder of this Lease shall not be affected thereby and each provision of the Lease shall be valid and enforceable to the fullest extent permitted by law, and the remaining provisions of this Lease shall be interpreted so as to nearly as possible conform to the intent of the parties as indicated in this Lease. Corporate Name. Lessee shall retain the use of the word "Elgin" in its corporate name during the term of this Lease. Retail Ticketing Office. Lessee shall maintain a retail ticketing office within the Center City area of the City for the sale of tickets to performances during the term of this Lease. Tax Exempt Status. Lessee hereby warrants and represents that it is a tax exempt organization as defined by the Internal Revenue Service Code Section 501C(3). Lessee shall notify the Lessor in writing within thirty(30)days of any change in the Lessee's tax status. In the event the Lessee's tax status changes during the term of this Lease,or in the event of the dissolution of Lessee, the Lessor may terminate this Lease upon thirty(30)days written notice to Lessee,and the Lessor shall have no further obligations hereunder. No Discrimination. Lessee shall not discriminate on the basis of race, color, religion, sex or national origin in the use of the Premises. 19. Disclaimers AS IS CONDITION. Lessor has made no warranty, express, implied or with regard to suitability for a particular purpose of the Premises nor any fixture nor equipment subject to this Lease. 8 Environmental Hazards. Lessor expressly disclaims any warranty regarding the presence or absence of any environmental hazard on, upon, beneath or within the Premises to include the presence of asbestos or other material. Lessee will not keep or use or permit to be kept or used in or on the premises or anyplace contiguous thereto any flammable fluids, hazardous substances, explosives or space heaters. For purposes of this Lease, (a) "hazardous substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law"means federal laws and laws of the jurisdiction where the Premises is located that relate to health, safety or environmental protection; (c)`Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition"means a condition that can cause,contribute to, or otherwise trigger an Environmental Cleanup. Lessee shall not cause or permit the presence, use, disposal, storage, or release of any hazardous substances, or threaten to release any hazardous substances, on or in the Premises or the Building. Lessee shall not do,nor allow anyone else to do, anything affecting the Premises or the Building(a) that is in violation of any Environmental Law,(b)which creates an Environmental Condition,or(c) which, due to the presence, use, or release of a hazardous substance, creates a condition that adversely affects the value of the Premises or the Building. Lessee shall promptly give Lessor written notice of(a) any investigation,claim,demand, lawsuit or other action by any governmental or regulatory agency or private.party involving the Premises and any hazardous substance or Environmental Law of which Lessee has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any hazardous substance, and (c) any condition caused by the presence, use or release of a hazardous substance which adversely affects the value of the Premises or the Building. If Lessee learns,or is notified by any governmental or regulatory authority,or any private party,that any removal or other remediation of any hazardous substance affecting the Premises or the Building is necessary, Lessee shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lessor for an Environmental Cleanup. 20. Entire Agreement This Lease and the Exhibits attached hereto and forming a part hereof, set forth all the covenants, promises, agreements, conditions, and understandings between Lessor and Lessee concerning the Premises and there are no covenants,promises,agreements,conditions,or understandings,either oral or written, between them other than are herein set forth. No alteration, amendment, change, or addition to this Lease shall be binding upon Lessor or Lessee unless reduced to writing and signed by the party to be charged. IN WITNESS WHEREOF, Lessor and Lessee have signed this Lease as of the day and year first above written. LESSOR': LESSEE: CITY-OF ELGIN, ELGIN SYMPHONY ORCHESTRA an Illinois municipal corporation By: Olufemi Fo City ger Michael Pastreich, Executive Director Attest: Attest: City Clerk F:Uxgal Dept\AgreemenALease-Elgin Symphony Orchestra-31 S Grove-clean 11-30-06.doc EMMIT A caara•ner & Wetch ARCHITECTS Building Common ' Areas wfN W OK/1fl EAK .AFRO PFOPCATION i YCn 1Al DIP[ci A fUffflNITCD[Nt: DUf[—TiNOENT 1TOM 0[ ' I YAPY MAPCM I Jt \ / N ew FFIC New i New - � � i flit[ OFPICC AN' OP'IC[ OE Off101 • !,._._.....__.-...- .L...__ ........�... ..... ;_I. ..0'[1150' V� \ OlPfc[ O N Pi ' w K A[ L \ of anro[ G ; ucyiezD• j I I , ww:�1N0 0� 1111[Mi I I OU[1 1fOAA08 fCCAfTAAY DIPOCTOw CONOflPENcK . •N r ���""` � d'rcc eroln�ne e>-�..._�... �... ..-. ..y\ .. J -"TA-- .. ........_....._ _...... ... .. ......_ � I �,N,� �•, I No m w,iE �cF ,�,�,' f?EVISIC�PdS ELGIN ARK E1Qhsr DIST01M Mp ..OFFICE OP P,,AARp" ANEY R15cgE AM?l 31 S GRMVFz AVE ELGIN,IUMOIS 'GROUND FLOOR PLAN ONwLL NO November 8, 2006 I. ESO Office Space Dw,. • �' APO.IC1:No. ' EXHIBIT A u;�1I C.711CF & Welch ARCHITECTS =cr: i l - --' '1 _"fir=—.._.—. �—.-\ ,�fl•-�,1 r<,��i,��.•.re4'1'11•: 'C� uf � —� '•••�;•� '. T _ i 11 i J : , i -_ --I —II 1—!—j - -;_- ; I — - —............_.....-- -----; —I I 7' � ;' I rt ---- , It.. — . .. ... .... ... __ I T. NO. DESORWTION GATE i REVISIONS' }, ELGIN PARK DISTRICT ESO Storage Space AND RECREATION 31 S.GROVE AVE ELGIN,ILLINOIS LOWER LEVEL' FLOOR'PLAN' November 8, 2006 ' � DRAWN DRWO,NO 1' 1 ' CHECKED:. 1' ATB I I -- PROJECT NO. r1- City of Elgin Agenda Item No. i.; r: December 15, 2006 TO: Mayor and Members of the City Council - -- • /`i•irrdrira,:i,Lriaur urn FROM: Olufemi Folarin, City Manager Randy Reopelle, Parks and Rec eation Director SUBJECT: Office Lease Agreement with the Elgin Symphony Orchestra PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a new office lease agreement with the Elgin Symphony Orchestra. RECOMMENDATION It is recommended that the City Council approve the new office lease agreement with the Elgin •. Symphony Orchestra at a cost to the City of approximately $40,181 per year. BACKGROUND In 1996 the City of Elgin entered into a lease agreement with the Elgin Symphony Orchestra, that provided the Symphony with office space in the city-owned building located at 31 South Grove. The terms of the proposed new agreement are very similar to the original agreement with two exceptions: 1. The original agreement provided the ESO with 1,500 square feet of office space. The new agreement calls for 1,700 square feet of office space and 1,650 square feet of storage in the basement. The additional office and storage spaces are areas that the ESO has acquired during the term of the original lease and they are areas that would otherwise go unused. 2. The second change is in the term of the agreement. The term of the original agreement was ten years. The term of the new lease agreement is 18 months, or until June 30, 2008. This date was chosen because it is the same date that the Chamber of Commerce's lease expires on the space that they lease at 31 South Grove. • • Office Lease Agreement with ESO December 15, 2006 Page 2 As in the original agreement, the City will not be charging any rent for the space. ESO will pay for all phone and fax charges, as well as janitorial services. The City will pay for all other utilities, as well as building maintenance services. A copy of the proposed new lease agreement is attached. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. NANCIAL IMPACT The projected potential annual lease revenue for this space, given the current downtown average of$10 per square foot, is $33,500. The projected annual utility expense for this space is $3,235 for gas service and $802 for sewer and water service. The City does not pay for electrical service at this facility. The projected annual building maintenance expense for this space is $2,644. Total cost to the City would be approximately $40,181. EGALIMPACT None. ALTERNATIVES 1. Approve the new office lease agreement with the Elgin Symphony Orchestra as presented. 2. Do not approve the new office lease agreement with the Elgin Symphony Orchestra as presented. Respectfully submitted for Council consideration. rr attachment •