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• <br /> . 7 <br /> EVERETT CITY COUNCIL AGENDA I TEM COVER SHEET <br /> PROJECT TITLE: <br /> Amendment No.3 to Lease Briefing COUNCIL BILL# <br /> Agreement with Everett Physical Proposed Action Originating Dept. Facilities/Real Prop. <br /> Therapy and Sports Performance Consent Contact Person Darcie Byrd <br /> Center,LLC for space at 2000 Action Phone Number (425)257-7294 <br /> Hewitt Avenue First Reading FOR AGENDA OF 3/6/2019 <br /> Second Reading <br /> Third Reading Initialed by: <br /> Public Hearing Department Head <br /> Budget Advisory CAA <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> 2000 Hewitt Avenue Initial Lease—10/15/2003 Proposed Lease Amendment Legal,Facilities/Property <br /> 1st Amendment—5/10/2011 No.3 Management <br /> 2nd Amendment -10/14/2013 <br /> Amount Budgeted -0- <br /> Expenditure Required -0- <br /> Budget Remaining -0- <br /> Additional Required -0- <br /> DETAILED SUMMARY STATEMENT: <br /> Everett Physical Therapy and Sports Performance Center,LLC leases from the City of Everett approximately 3,200 <br /> square feet at the Edward D.Hansen Conference Center located at 2000 Hewitt Avenue,and five parking stalls off <br /> Wall Street just south of the conference center.The initial lease was executed in 2003 for a term of five years with <br /> the option to extend for two additional five-year terms. <br /> Lease Amendment Nos. 1 and 2 were approved by City Council exercising the two additional five-year option terms <br /> in 2011 and 2013,respectively. <br /> The attached proposed Amendment No.3 provides for two additional five-year terms,the first term commencing on <br /> -- January 1;2019,-and expiring on December-3-1;2024. In consideration-of the cost of planned-improvements by -- - -- - <br /> Lessee,which includes re-carpeting and re-painting of the leased space together with the installation of a new <br /> washer and dryer facility within a shared utility closet,Amendment No.3 provides that the rent shall remain <br /> unchanged from the current rate of$7,960.70($29.85/sf—gross rate),for the space and$324.48 for the parking <br /> stalls for the first 24 months of the new five-year term. Thereafter,the rent rate shall escalate on an annual basis <br /> according to CPI,but not less than 3%and not more than 8%. <br /> A review of commercial space for lease listings in the downtown area currently range anywhere from$22.60/sq.ft <br /> ($16.00+6.60 triple net)in the-Wetmore Building across the street from Funko to$34.00/sq.ft.($27.00+7.00 triple <br /> net)at the downtown Marriot. <br /> Additionally,the proposed Amendment provides for Lessee's use of the shared utility closet area for the purpose of <br /> installing the new on-site washer and dryer facility. <br /> RECOM11UvNDATION: <br /> Authorize the Mayor to execute Amendment No. 3 to Lease Agreement with Everett Physical Therapy and Sports <br /> Performance Center,LLC for space at 2000 Hewitt Avenue. <br /> 17 <br />