Memorandum

City of Lawrence

City Attorney’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Toni R. Wheeler, City Attorney

 

C:

Diane Stoddard, Assistant City Manager

Date:

February 1, 2012

RE:

Land Lease Agreement and Option To Purchase With Cornerstone Plaza, L.L.C.

 

 

 

Background

At its regular meeting on November 8, 2011, the City Commission authorized the City to enter into a Land Lease Agreement with Cornerstone Plaza, L.L.C. (hereinafter “Cornerstone”) to allow it to construct and maintain a temporary parking facility on City property (see attached site plan) for use by SurePoint Medical, L.L.C. at 2004 East 23rd Street.  Cornerstone is also granted an option to purchase the land at market rate, as well as an adjacent tract of land approximately 1.5 acres in size, if SurePoint Medical demonstrates to the City it will expand at the 2004 East 23rd Street location. 

 

The term of the lease agreement is three (3) years commencing on February 10, 2012, with an annual rent of $2,612.  Cornerstone will be responsible for payment of any property taxes, assessments, and utility costs that become due during the lease term, as well as maintenance of the leased premises.  Cornerstone will carry liability insurance to insure against personal injury or property damage on the leased premises.  Cornerstone will be permitted to construct and maintain during the lease term a temporary parking lot, provided it complies with the site plan approved by the Planning and Development Services Department.  If SurePoint Medical, or a successor entity that is engaged in a substantially similar business to that of SurePoint, ceases to be a tenant of Cornerstone at the 2004 East 23rd Street location, or ceases to produce or sell its product from that location, the City may terminate the agreement with Cornerstone immediately by providing written notice to Cornerstone. The agreement also contains a number of standard lease provisions. 

 

Action Requested:  Authorize the City Manager to enter into the Land Lease Agreement and Option to Purchase with Cornerstone Plaza, L.L.C.