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File #: 200662    Version: Name:
Type: Bill Status: ENACTED
File created: 11/19/2020 In control: Committee on Public Property and Public Works
On agenda: Final action: 6/17/2021
Title: Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Municipal Authority, for use by the City, of a portion of the premises located at 11311 Roosevelt Boulevard, Philadelphia, Pennsylvania, all under certain terms and conditions.
Sponsors: Councilmember O'Neill
Indexes: AGREEMENTS, PUBLIC PROPERTY
Attachments: 1. CertifiedCopy20066201.pdf
Date Ver.Action ByActionResultTallyAction DetailsVideo
7/1/20211 MAYOR SIGNED   Action details Not available
6/17/20211 CITY COUNCIL READ AND PASSEDPass17:0 Action details Not available
6/10/20211 CITY COUNCIL SUSPEND THE RULES OF THE COUNCIL   Action details Not available
6/10/20211 CITY COUNCIL ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR   Action details Not available
6/10/20211 CITY COUNCIL READ AND ORDERED PLACED ON NEXT WEEK'S SECOND READING CALENDAR   Action details Not available
5/28/20210 Committee on Public Property and Public Works HEARING NOTICES SENT   Action details Not available
5/28/20210 Committee on Public Property and Public Works HEARING HELD   Action details Not available
5/28/20210 Committee on Public Property and Public Works AMENDED   Action details Not available
5/28/20211 Committee on Public Property and Public Works REPORTED FAVORABLY, RULE SUSPENSION REQUESTED   Action details Not available
11/30/20200 Committee on Public Property and Public Works HEARING NOTICES SENT   Action details Not available
11/30/20200 Committee on Public Property and Public Works RECESSED   Action details Not available
11/19/20200 CITY COUNCIL Introduced and Referred   Action details Not available

Title

Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Municipal Authority, for use by the City, of a portion of the premises located at 11311 Roosevelt Boulevard, Philadelphia, Pennsylvania, all 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 enter into a lease agreement with the Philadelphia Municipal Authority for use by the City, of a portion of the premises located at 11311 Roosevelt Boulevard, 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 and other documents necessary to effectuate this Ordinance, which sublease 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 Sublease

For 11311 Roosevelt Boulevard, Philadelphia, PA

 

 

1.     Sublandlord:  The Philadelphia Municipal Authority (The Philadelphia MunicipalAuthority will enter into a prime lease for the premises with Covington Property Partners, LLC.)

 

2.     Subtenant:  The City of Philadelphia

 

3.     Premises Address:  11311 Roosevelt Boulevard, Philadelphia, PA

 

4.     Use of the Premises:      Approximately two hundred twenty nine thousand four hundred fifty nine (229,459) rentable square feet, to be used for warehouse and office space for the City Commissioners.

5.     Term of Lease:  Initial Term of Sixteen (16) years with an option to renew for two (2)additional five (5) year terms.

 

6.     Rent:  The first year annual base rent will be approximately $1.91 per rentable square foot and represents a blended rent amount for two hundred sixteen thousand eight hundred seventy six (216,876) square feet of warehouse space and twelve thousand five hundred eighty three (12,583) square feet of office space.  The blended rent amount will increase at varying rates annually as shown on Exhibit A-1.  At approximately 229,459 rentable square feet, the first year’s annual base rent will be approximately $438,798.00. 

 

7.     Utilities:  Tenant shall pay monthly for utility usage at the premises.

 

8.     Tenant Improvements: Landlord shall turn-key the premises based on a mutually accepted space plan.

 

EXHIBIT “A-1”

 

Rent Chart

 

 

Total SF

Base Rent PSF

Monthly Rent

Annual Rent

YR1*

229,459

$1.91

$36,566.52

$438,798.23

YR2

229,459

$6.26

$119,655.55

$1,435,866.64

YR3

229,459

$6.61

$126,387.46

$1,516,649.50

YR4

229,459

$7.22

$138,045.42

$1,656,545.00

YR5

229,459

$7.40

$141,586.92

$1,699,043.01

YR6

229,459

$7.58

$144,954.90

$1,739,458.76

YR7

229,459

$7.78

$148,691.73

$1,784,300.70

YR8

229,459

$7.97

$152,436.13

$1,829,233.53

YR9

229,459

$8.17

$156,188.29

$1,874,259.52

YR10

229,459

$8.37

$160,129.15

$1,921,549.77

YR11

229,459

$8.58

$164,078.16

$1,968,937.88

YR12

229,459

$8.80

$168,216.26

$2,018,595.08

YR13

229,459

$9.01

$172,362.93

$2,068,355.11

YR14

229,459

$9.24

$176,699.11

$2,120,389.30

YR15

229,459

$9.47

$181,044.29

$2,172,531.53

YR16

229,459

$9.71

$185,579.44

$2,226,953.26

YR17

229,459

$9.95

$190,304.77

$2,283,657.25

YR18

229,459

$10.20

$195,039.80

$2,340,477.59

YR19

229,459

$10.46

$199,965.49

$2,399,585.93

YR20

229,459

$10.72

$204,901.38

$2,458,816.52

YR21

229,459

$10.98

$210,028.43

$2,520,341.15

YR22

229,459

$11.26

$215,346.91

$2,584,162.96

YR23

229,459

$11.54

$220,676.37

$2,648,116.41

YR24

229,459

$11.83

$226,197.80

$2,714,373.54

YR25

229,459

$12.13

$231,911.48

$2,782,937.72

YR26

229,459

$12.43

$237,636.97

$2,851,643.66

 

 

*Year 1 is presented as the “License Year” from November 1, 2020 to November 1, 2021. Eight (8) months of free rent was provided to DPP                  .

**Years 17 through 26 of the rent schedule represents two (2) five (5) year renewal options available for the City of Philadelphia to exercise per lease agreement

 

In addition to the Monthly Base Rent, Tenant will be responsible for its pro rata share of estimated operating expenses for the Premises, including real estate taxes, building property insurance, common area maintenance and property management: 

 

Real Estate Taxes        $0.49 

CAM                  $0.70

Storm Water            $0.03 

Insurance             $0.10

Property Management      $0.25

Estimated Operating Expense  $1.57 / year

 

Based on pro rata share, Tenant shall pay all taxes (including real and personal property, occupancy, franchise, sales, gross receipts and rent taxes), all charges for any easement or agreement maintained for the benefit of the Leased Premises, all assessments and levies, all permit, inspection and license fees, all rents and charges for water, sewer, utility and communication services relating to the Leased Premises.

 

Pro rata share = 100% (City of Philadelphia to occupy entirety of the 229,459 SF building)

 

End