THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1
. The Commissioner of Public Property, on behalf of the City of Philadelphia, is hereby authorized to enter into a sublease agreement with The Philadelphia Municipal Authority, with City as subtenant, for use by the City of a portion of the premises located at 1500 John F. Kennedy Boulevard, Philadelphia, Pennsylvania, pursuant to terms substantially set forth in the document attached hereto as
Exhibit "A"
.
SECTION 2
. The City Solicitor is hereby authorized to review and to approve the sublease and other documents necessary to effectuate this Ordinance, which sublease and documents shall contain such terms and conditions as the City Solicitor shall deem necessary and proper to protect the interests of the City of Philadelphia and to carry out the purpose of this Ordinance.
EXHIBIT "A"
Terms of Proposed Sublease
For 1500 J.F.K Boulevard, Philadelphia, PA
1.
Sublandord:
The Philadelphia Municipal Authority (The Philadelphia Municipal Authority will to enter into a prime lease for the premises with Crown Two Penn Center Associates, LP)
2.
Subtenant:
The City of Philadelphia
3.
Premises Address:
1500 John F. Kennedy Boulevard, Philadelphia, PA
4.
Use of the Premises:
Approximately 31,499 rentable square feet, to be used for office space.
5.
Term of Sublease
: 10 years.
6.
Renewal Terms:
Tenant shall have one (1) five (5) year renewal option.
7.
Rent:
The annual base rent will be approximately $23.74 per rentable square foot and will escalate at a rate of approximately 3% per rentable square foot per year. At approximately 31,499 rentable square feet, the first year’s annual base rent will be approximately $747,786.26. During the Renewal Term, the base rent will increase approximately 3% annually.
8.
Operating Expenses:
The City shall be responsible for its proportionate share of operating expenses.
9.
Tenant Improvements:
Landlord under the prime lease shall turn-key the premises based on a mutually accepted space plan.
End