Memorandum

City of Lawrence

Legal Department

TO:	David L. Corliss, City Manager
FROM:	Toni R. Wheeler, Director of the Legal Department
C:	Vicki Stanwix, Court Manager
Date:	July 7, 2011
RE:	Lease for Municipal Court, Prosecutors’ Office, and the Human Relations Division

Please place this item on the City Commission’s Agenda for consideration.

Background

The City entered into a lease with Berkeley Plaza, Inc. commencing in April 2008, for approximately 6900 square feet of office space at 1006 New Hampshire for Municipal Court, the Prosecutors’ Office and the Human Relations Division.  The initial term of the lease expires in April 2012.  The annual base rent for the space is $88,650, plus an adjustment to cover a portion of the building insurance, common area maintenance and grounds maintenance.   The lease provides the City the opportunity to extend the lease for two additional three (3) year terms.  In order to extend the lease for a three-term, the City must provide notice to the Lessor at least ten (10) months prior to the termination of the previous term.   

The base rent during the first three-year renewal period (2012-2014) increases three percent (3%) from $88,650 to $91,309.50 per year. The current municipal court facilities are adequate.  Staff recommends the City provide notice to the Lessor of the City’s desire to extend the lease for a three-year term. 

Action requested:     Authorize the City Manager to provide notice to Berkeley Plaza, Inc. of the City’s desire to extend the lease for the municipal court building (1006-1008 New Hampshire) for an additional three-year period, and to execute an appropriate amendment to the lease consistent with this memorandum.