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 an amendment to a sublease agreement with the Philadelphia Authority for Industrial Development, for use by the City, of all or a portion of the premises located at 1101 Market Street, 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 amendment and other documents necessary to effectuate this Ordinance, which sublease amendment and documents shall contain such terms and conditions as the City Solicitor shall deem necessary and proper to protect the interests of the City and to carry out the purpose of this Ordinance.
EXHIBIT "A"
Terms of Proposed Sublease Amendment
For 1101 Market Street, Philadelphia, PA
1.
Landlord: Girard Estate Leasehold
2.
Sublandord: The Philadelphia Authority for Industrial Development
3.
Subtenant: The City of Philadelphia
4.
Premises Address: 1101 Market Street, Philadelphia, PA
5.
Use of the Premises: Adding approximately 20,642 rentable square feet, to the existing space subleased under the current agreement, to be used for office space.
6.
Term of Sublease: Two (2) additional years (“Extension Term”) beyond the existing sublease term, extending the expiration date from August 31, 2032 to August 31, 2034.
7.
Rent: The annual base rent will escalate by approximately forty-five cents ($.45) per rentable square foot each year of the Extension Term to $19.70 in Year 1 and $20.15 in Year 2 of the Extension Term. At approximately 274,798 rentable square feet, the additional two year’s annual base rent will be approximately $5,413,520.60 and $5,537,179.70, respectively.
8.
Operating Expenses: The City shall be responsible for its proportionate share of operating expenses.
End