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TO: Mayor Robert J. O’Connor
FROM: Chuck Nelson, Director of Neighborhood Standards
DATE: February 7, 2017
SUBJECT:
Resolution to authorize the City of Aurora to enter into a new Commercial Lease Agreement with Subway Real Estate, LLC for the space located at 5 E. Downer Pl. commonly known as Stolp Island Place.
PURPOSE:
Resolution authorizing the City of Aurora to enter into a new Commercial Lease Agreement with Subway Real Estate, LLC for the commercial space located at 5 E. Downer Pl.
BACKGROUND:
In a continued effort to standardize leases, the Department of Neighborhood Standards (DNS) will be presenting all leases to the Council prior to their expiration for review and approval.
The City of Aurora originally entered into a lease agreement with Subway for this space back in 1991. The space is approximately 1,400 sq. ft. and has been used a sandwich shop since. The current lease agreement for this space recently expired.
DISCUSSION:
The attached lease agreement proposes an initial five year term, with the option of two additional extensions that can be renewed. The monthly rent for this space is $1,021.63 per month, the rent will additionally increase 2% each year. In addition, a security deposit of $1,021.63 will be paid at the execution of this lease agreement.
IMPACT STATEMENT:
The approval of this lease agreement would allow for Subway to continue operating their business in a space that would otherwise sit vacant.
RECOMMENDATIONS:
To approve the new Commercial Lease agreement for the space at 5 E. Downer Pl.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing a new Commercial Lease Agreement with Subway Real Estate, LLC for the space approximately 1,400 square feet located at 5 E. Downer Pl. commonly known as Stolp Island Place.
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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, the space at 5 E. Downer Pl. has been previously and is currently being used by Subway and
WHEREAS, the lease agreement is for a five year term with an option to renew for two (2) two (2) year terms. The monthly rent for this space is $1,021.63 per month. In addition, a security deposit of $1,021.63 will be paid at the execution of this lease agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Commercial Lease Agreement with Subway Real Estate LLC for the commercial space located at 5 E. Downer Pl. is hereby approved.