Memorandum

City of Lawrence

City Attorney’s Office

TO:	David L. Corliss, City Manager
FROM:	Toni R. Wheeler, City Attorney
C: DATE:	Casey Toomay, Budget Manager and Vicki Stanwix, Court Administrator May 28, 2014
RE:	Municipal Court Lease – Notify Landlord of Desire to Extend Lease

Please place a request on the City Commission’s agenda to authorize the City Manager to notify Berkeley Plaza, Inc. of the City’s desire to exercise an option to extend the term of its lease for the Municipal Court and Prosecutors’ Office at 1006 New Hampshire for one year.  We further request the Commission authorize the City Manager to execute the appropriate documents to amend the lease to extend the lease term through April 2016. 

Background

In 2007, the City and Berkeley Plaza, Inc. entered into a lease for the Municipal Court and Prosecutors’ Office at 1006 New Hampshire Street.  The original lease expired in 2012.  In August, 2011, the parties executed an Amendment to the Lease extending the term through April 2015.  The lease, as amended, provides the City an option to further extend the lease for three (3) years, with the annual base rent increasing 3% to $94,049. Notice of the desire to extend the lease must be given in June 2014. 

Berkeley Plaza, Inc. has agreed to modify the option to extend the term from three years to one year.  This modification will provide the City greater flexibility as it evaluates future operations of the Court.  Accordingly, staff recommends the City Manager notify Berkeley Plaza of its desire to exercise the option, and to execute the necessary documents to extend the lease term one year (from April 2015 – April 2016), at an annual base rent of $94,049. 

Action Requested

Authorize the City Manager to notify Berkeley Plaza, Inc. of the City’s desire to exercise the option to extend the term of the lease for Municipal Court for one year and to execute the necessary lease amendment to extend the term through April 2016, at an annual base rent of $94,049.