R2010-237 AUTHORIZING AMENDMENT TO LEASE AGREEMENT

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DEVELOPMENT SERVICES MEMORANDUM No. 10-110 December 1, 2010 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Greg C. Crowe, 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 100 to 125 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 requires 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 current monthly rate is $20 for upper level parking in Garage C and $25 for lower level parking. The administration of the parking spaces is the responsibility of South Water Street, LLC. Also, the annual group payment for the parking spaces provides the City with a consistent revenue stream. With the Millikin Building now almost completely leased out South Water Street LLC, is requesting that the maximum allowable spaces be increased to 125. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: N/A STAFF REFERENCE: Any additional questions may be forwarded to Greg Crowe at 424-2727 or at gcrowe@decaturil.gov. BUDGET/TIME IMPLICATIONS: N/A