Number
011169
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the Department of Public Works to modify the lease agreement between the City of Milwaukee and C.H.I.P. Investments, Inc., for the premises located at 1118 North 4th Street/324 West Highland Avenue.
Analysis
This resolution authorizes the Department of Public Works to modify the lease agreement between the City of Milwaukee and C.H.I.P. Investments, Inc., for the lease of 8,470 gross square feet at the premises located at 1118 North 4th Street/324 West Highland Avenue.
Body
Whereas, The lease was entered into on April 1, 1997 between the City of Milwaukee and C.H.I.P. Investments, Inc., for the lease of 8,470 gross square feet at the premises located at 1118 North 4th Street/324 West Highland Avenue; and
Whereas, The primary term of the contract is for a period of 7 years expiring
March 31, 2004, and includes a base rent of $11.00 per square foot, a supplemental rent of 20% of the base rent, and a percentage rent of 5% of the amount that gross sales exceed $1,150,000; and
Whereas, The lease agreement has an option period of one additional term of 5 years to March 31, 2009, whereby the base rent increases to $14.16 per square foot, the supplemental rent is 20% of the base rent, and the percentage rent is 5% of the amount that gross sales exceed $2,400,000; and
Whereas, C.H.I.P. Investments, Inc., has expressed an intention to secure approximately $225,000 in 2002 to remodel the property at 1118 North 4th Street/324 West Highland Avenue and has asked the City to renegotiate the lease agreement so that financing can be secured; and
Whereas, The City has agreed to renegotiate the lease agreement in its desire to retain the current occupant and to have rental rates more reflective of the rates of comparable properties; and
Whereas, The City and C.H.I.P. Investment, Inc., have reached an agreement whereby the lease agreement would be extended through ...
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