R2012-26 AUTHORIZING THIRD AMENDMENT TO LEASE AGREEMENT - SOUTH WATER STREET, LLC

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DEVELOPMENT SERVICES MEMORANDUM MEMO NO. 12 - 06 January 30, 2012 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Billy Tyus, Assistant City Manager SUBJECT: Parking Garage C Lease Agreement with South Water Street, LLC, for the Millikin Building SUMMARY RECOMMENDATION: Staff recommends approval of the resolution authorizing the Mayor to execute an amendment to the Parking Garage C Lease Agreement with South Water Street, LLC, increasing the maximum allowable parking spaces purchased at a reduced rate from 135 to 145 parking spaces. BACKGROUND: On June 7, 2010 City Council approved an Agreement with South Water Street, LLC, to allow them to purchase parking passes for the tenants of the Millikin Building at the reduced rate of$10/month for the upper deck and $15/month for the lower deck for at least 50 parking spaces and no more than 100 parking spaces. The agreement originally required South Water Street, LLC, to purchase at least 50 parking spaces annually with the option to buy additional spaces each month up to 100 at the reduced rate for no more than ten years. The agreement was amended in December 2010 to increase the maximum number of spaces to 125 and again in August 2011 to increase the maximum number to 135. A request has been made to increase that number to 145 spaces due to the increase in the number of tenants in the building. South Water Street, LLC would pay for all the spaces as a group payment annually and the administration of the parking spaces is the responsibility of South Water Street, LLC. The current monthly rate is $15 for upper level parking in Garage C and $25 for lower level parking. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: N/A STAFF REFERENCE: Any additional questions may be forwarded to Billy Tyus at 424-2727 or at btyus@decaturil.gov. BUDGET/TIME IMPLICATIONS: N/A