05-10-2011 CC RPT 21 - Laserfiche WebLink

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First Amendment to A -1 Grit Lease, 1901 Massachusetts • Page 2 During the heavy rains this past winter, A -1 Grit experienced significant flood damage as a portion of the Property sits in a 100 -year flood plain. In order to continue operations at the site, a significant investment is required of A -1 Grit to replace equipment, make repairs to on -site improvements and add protective measures to prevent damage from future flooding conditions. A- 1 Grit is willing to invest in such repairs if they can amortize those costs over a longer period than what exists on their current lease and option term. In order to preserve the jobs they provide in the City and provide for an extended revenue stream for the Community Access Center, staff proposes a First Amendment with A -1 Grit that would allow for a second five year option to extend, making it worthwhile for them to invest in the new equipment and repairs that are required. With this second option, A -1 Grit would be allowed to continue operations through October 31, 2026. FISCAL IMPACT There is no impact to the General Fund. The City receives $5,700 in monthly revenue which provides critical support to the Homeless Campus on Hulen Place. Submitted by: Tina English, Interim Development Director Certified as to availability of funds: Paul C. Sundeen, Assistant City Manager /CFO /Treasurer Approved by: Deanna Lorson, Assistant City Manager for Bradley J. Hudson, City Manager Approved as to form: Gregory P. Priamos, City Attorney Attachment: First Amendment to Lease Agreement — Exhibit A 21 -2