Title
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an amendment to a sublease agreement with the Philadelphia Municipal Authority, for use by the City of a portion of the premises located at 1600-26 John F Kennedy Boulevard, Philadelphia, Pennsylvania, under certain terms and conditions.
Body
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 amend a sublease agreement with the Philadelphia Municipal Authority, with the City as subtenant, for use by the City of a portion of the premises located at 1600-26 John F Kennedy Boulevard, Philadelphia, Pennsylvania, 19103 pursuant to terms substantially set forth in Exhibit “A”.
SECTION 2. The Commissioner of Public Property is hereby authorized to take all actions deemed by the Commissioner to be necessary and appropriate to carry out the provisions and intent of this Ordinance, including executing all instruments and ancillary documents necessary and appropriate for the City to carry out the purposes of 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 of Philadelphia.
SECTION 3. The City Solicitor is authorized to review, negotiate, and approve the sublease amendment and all ancillary documents deemed by the City Solicitor to be necessary and appropriate to carry out the provisions and intent of this Ordinance, which sublease amendment and documents shall contain such terms and conditions deemed by the City Solicitor to be necessary, desirable, and in the best interests of the City of Philadelphia to carry out the purpose of this Ordinance.
EXHIBIT “A”
Terms of Proposed Sublease Amendment
For 1600-26 John F. Kennedy Boulevard, Philadelphia, Pennsylvania, 19103
1. Landlord: Four Penn Center Owner, LLC
2. Tenant/Sublandlord: Philadelphia Municipal Authority
3. Subtenant: City of Philadelphia
4. Premises Address: 1600-26 John F Kennedy Boulevard, Philadelphia, Pennsylvania, 19103
5. Use of the Premises: Adding approximately 74,719 rentable square feet for office use and administrative purposes.
6. Term of Lease: Fifteen (15) years, independent of existing term for currently leased space.
7. Renewal Term: The City shall have one (1) three (3) year renewal option, and if the first option is exercised, then the City shall have a subsequent one (1) time option for an additional two (2) year renewal term.
8. Rent: Base rent for the additional space in Lease Year 1 will be $19.00 per square foot and shall escalate in accordance with the master lease.
9. Utilities: The City shall pay directly through the City’s own accounts if possible, but if not billed directly, the City shall pay PMA who shall then reimburse Landlord for the costs of utilities paid on the City’s behalf.
10. Operating Expenses: The City shall be responsible for its proportionate share of operating expenses.be responsible for its proportionate share of operating expenses.
11. Tenant Improvements: Landlord shall provide the City a tenant improvement allowance of $2,846,440.
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