Number
030302
Version
Original
Reference
001466
Sponsor
The Chair
Title:
Resolution approving amendment to and extension of lease agreement with Kinder Morgan Bulk Terminal (KMBT) commencing January 1, 2004.
Analysis
This resolution would approve amendment to and extension of lease agreement with Kinder Morgan Bulk Terminal by granting KMBT two five- (5) year extensions to its current lease in the Port of Milwaukee. This will allow KMBT clients to pursue and consummate supply contracts for their products. The initial lease year under the option commences January 1, 2004.
Body:
Whereas, Kinder Morgan Bulk Terminal (KMBT) has been a long term tenant in good standing in the Port of Milwaukee; and
Whereas, KMBT has an existing lease with the Port/City of Milwaukee dated September 10, 1991, as amended; and
Whereas, KMBT has within its lease a series of five (5) one-year option periods commencing as of this past January 1, 2003 and extending to December 31, 2007; and
Whereas, KMBT has exercised said existing option periods and requests two additional five (5)- year option periods; and
Whereas, the Board of Harbor Commissioners at their meeting of April 24, 2003 acted by vote of the Board to grant such additional two five (5)-year extensions under the terms and conditions as described below; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that said Common Council hereby ratifies and approves the amendment to and extension of lease agreement dated September 10, 1991 with Kinder Morgan Bulk Terminal, with the City of Milwaukee, by and through its Board of Harbor Commissioners under the following terms and conditions
1. A new, firm "First Extension Period" for four years, commencing January 1, 2004 and ending on December 31, 2007, representing the declared original option period.
2. A "Second Extension Period" for five years, declarable by KMBT, commending January 1, 2008 and ending December 31, 2012.
3. A "Third Extension Period" for five years, declarable by KMBT, commending January 1, 2013 and ending on December 31, 2017.
4. Rent: At the 2003 rate, escalated per Clause 2C of the existing agreement as denoted below on annual basis.
5. Rental Escalation: For the first and subsequent extension periods, annually, per Clause 2C of the Amendment dated July 28, 1998 to the lease dated September 10, 1991 between KMBT and the Port of Milwaukee.
6. Otherwise per the terms and conditions of the lease dated September 10, 1991 as amended; and, be it
Further Resolved, That the designated officers of said government and said Board are hereby authorized and directed to execute an agreement to carry out this purpose as prepared by the City Attorney's office.
Drafter
5/15/2003
Port of Milwaukee
Donna Luty
mw/i:kmbtgfavelseccres.doc