TO: CRA Board of Commissioners
FROM: Jeff Costello, CRA Executive Director
DATE: June 11, 2019
Title
FIRST AMENDMENT TO COMMERCIAL LEASE AGREEMENT - 182 NW 5 AVENUE (THE MONOGRAM CLOSET)
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Recommended Action:
Recommendation
Approve the First Amendment to the Commercial Lease Agreement for The Monogram Closet at 182 NW 5th Avenue for extending the lease for one (1) year at a rate of $20.00/SF (Gross) or a monthly rent of $2,416.66.
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Background:
The CRA awarded a 4-year commercial lease agreement to The Monogram Closet on April 24, 2015 after accepting their proposal to lease the CRA-owned commercial space at 182 NW 5th Avenue. The term of the lease is set to expire at midnight on June 30, 2019 (the expiration date) unless the parties agree to extend the term of the lease for three additional one (1) year terms upon the execution of a written amendment to this Lease.
The CRA received a letter from Sabrina Amelung, Owner on May 17, 2019 with a request to extend the lease for one (1) year. As a result, a First Amendment to the Commercial Lease Agreement has been prepared extending the lease for 1 year at a rate of $20.00/SF (Gross) or a monthly rent of $2,416.66. During the 4-year commercial lease agreement, the Monogram Closet has been in good standing with compliance of the terms and provisions of the lease agreement.
Business activity is identified and encouraged in the Community Redevelopment Plan for the NW & SW 5th Avenue Beautification Project (Project #2.1) as it relates to the history of the once successful commercial and institutional corridor in the heart of the City’s West Settler’s Historic District. The objective is to revitalize the corridor into a thriving district for neighborhood businesses and cultural activities. The continuation of the commercial business on NW 5th Avenue also furthers the CRA’s more current Focus on 5th Initiative, which encourages the strategic activation of CRA-owned properties with uses that enhance business activity and pedestrian activity. Thus, approval of the First Amendment to the Lease Agreement is recommended.
CRA Attorney Review:
The CRA Attorney reviewed the First Amendment to the Lease Agreement to form and determined it to be accepted.
Finance Review:
N/A
Funding Source/Financial Impact:
N/A
Timing of Request:
Timing sensitivity due to expiration of current lease on June 30, 2019.
Attachments: Exhibit A - Location Map; Exhibit B - First Amendment to the Commercial Lease Agreement for The Monogram Closet at 182 NW 5 Avenue; Exhibit C - Monogram Closet Letter Requesting Lease Extension