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TO: Mayor Richard C. Irvin
FROM: The Mayor's Office
The Law Department
DATE: December 17, 2021
SUBJECT:
F.H. Paschen's Lease of the Second Floor of the Elmslie Building.
PURPOSE:
To authorize a proposed extension of lease agreement for the space located at 1 S. Broadway, 2nd floor, Aurora, Illinois, to be leased to F.H. Paschen for an additional one (1) year term through September 30, 2022
BACKGROUND:
F.H. Paschen is currently the tenant of City-owned space located at 1 S. Broadway, 2nd floor. The existing lease term expired on September 30, 2021, but F.H. Paschen has continued to occupy the space under the terms of the existing lease. This extension of lease agreement brings the lease current, by extending it for an additional year through September 30, 2022. The extension agreement also includes language providing for automatic one-year renewal periods unless either party elects to terminate the lease. The extension agreement also clarifies that F.H. Paschen will be responsible for any property taxes assessed for the space.
DISCUSSION:
Operating under a current lease benefits both parties and solidifies F.H. Paschen's lease of the space through September 30, 2022 with options for renewal. In addition to being responsible for the payment of any applicable property taxes, F.H. Paschen will continue to pay $2,450 per month ($29,000 annually) in rent to the City.
IMPACT STATEMENT:
Approval of this lease extension agreement brings the City's lease with F.H. Paschen current, instead of continuing the landlord-tenant relationship based on an expired document.
RECOMMENDATIONS:
We request approval of the lease extension agreement.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving a lease extension agreement with F.H. Paschen, for its lease of City-owned space located at 1 S. Broadway, 2nd floor, Aurora, Illinois, for an additional one-year term through September 30, 2022.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, F.H. Paschen is the existing tenant of City-owned space located at 1 S. Broadway, 2nd floor, Aurora, Illinois;
WHEREAS, the existing lease between the City and F.H. Paschen expired on September 30, 2021, but F.H. Paschen has continued to occupy the space based on the terms of the existing expired lease;
WHEREAS, the parties wish for the landlord-tenant relationship to continue, and therefore, an extension of lease agreement is necessary,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the extension of lease agreement between the City and F.H. Paschen for the lease of City-owned space at 1 S. Broadway, 2nd floor, Aurora, Illinois, for an additional one-year term to expire on September 30, 2022, with options to renew thereafter, is hereby approved.