AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Lease Agreement with the Judicial Council of California for Lodi Branch Court Department 1, 215 West Elm Street (PW)
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MEETING DATE:
September 18, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing City Manager to Execute Lease Agreement with the Judicial Council of California for Lodi Branch Court Department 1, 215 West Elm Street.
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BACKGROUND INFORMATION:
On March 29, 2006, City Council authorized the execution of a lease agreement with San Joaquin County and an assignment agreement with the State of California Administrative Office of Courts for the Lodi Superior Courtroom No. 1 located at 215 West Elm Street. The term of this lease expired on May 28, 2022. Since the lease termination, staff actively negotiated new lease terms with the Judicial Council of California.
The new lease, if approved, includes a five-year term commencing on May 29, 2022, with two optional term extensions of five years each. The Judicial Council of California agreed to pay the back rent due (from May 2022) to the City once the lease is executed. The initial monthly rent due (starting May 29, 2022) was $19,747.15 with an annual 4% escalator. The new monthly rent will be $21,358.52 through May 28, 2025.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
The proposed lease will provide annual revenue to the General Fund in the initial amount of $257,156 and then escalate 4% thereafter in accordance with the terms of the new lease agreement. The estimated back rent due to the City from May 29, 2022 to date is $590,200, of which $526,127 will be accrued to Fiscal Year 2024.
FUNDING AVAILABLE:
Not Applicable.
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Charles E. Swimley
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