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 lease agreement with Spring Del Associates, LP, with City as tenant, for use by the City, of all or a portion of the premises located at 520 North Delaware Avenue, 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 lease and other documents necessary to effectuate this Ordinance, which lease 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 Lease
For 520 North Delaware Avenue, Philadelphia, PA
1.
Landlord:
Spring Del Associates, LP
2.
Tenant:
The City of Philadelphia
3.
Premises Address:
520 North Delaware Avenue, Philadelphia, PA
4.
Use of the Premises:
Approximately 39,116 square feet, to be used for offic space.
5.
Term of Lease
: 5 years; provided, however, the City shall have a right to terminate the Lease at the City’s sole option, at any time after expiration of four years without liability to the Landlord for damage or loss of profits which would have been realized had the Lease not been terminated.
6.
Renewal Terms:
Tenant shall have one (1) five (5) year renewal option.
7.
Rent:
The annual base rent will be approximately $13.95 per square foot for the first two (2) years with approximately 2% escalations at the commencement of year three (3) and an approximately 2% increase on a biennial basis during the renewal term. The first year’s annual base rent will be approximately $545,668.20.
8.
Operating Expenses:
The City shall be responsible for its pro rata share of common area costs.
End