cover
TO: Mayor Richard C. Irvin
FROM: Jessica L. Kalal, Assistant Corporation Counsel
DATE: August 5, 2021
SUBJECT:
A resolution approving an extension of parking lot lease agreement with Hollywood Casino-Aurora, Inc., for the property located at 201 N. River Street, and known as the HCA-West lot, for an additional two years.
PURPOSE:
To extend an existing lease agreement with Hollywood Casino-Aurora, Inc., which recently expired at the end of July 2021. This extension agreement brings the lease current again and extends the term for an additional two years, or through July 30, 2023, with options for automatic renewals for additional one (1) year terms thereafter.
BACKGROUND:
The parties entered into an original lease agreement for this parking lot on November 14, 2001. The agreement was thereafter extended or amended on various occasions from 2007 through 2017. The most recent amendment, executed on May 10, 2017, called for the lease to expire at the end of July 2021.
DISCUSSION:
In negotiating this extension agreement, the parties agreed that Hollywood Casino-Aurora would gain an additional six (6) parking spaces, to bring the total number of spaces to eighteen (18). In exchange, the parties agreed that rent would increase from $1,500.00 to $2,250.00 per month. In addition, the extension agreement provides for a two-year term, expiring July 30, 2023, with automatic renewal options for one (1) year terms thereafter.
IMPACT STATEMENT:
The extension of parking lot lease agreement will bring the lease current and provide for a new two-year term. The agreement also allowed for the parties to renegotiate items such as number of spaces and rent.
RECOMMENDATIONS:
That the resolution be approved.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution approving an extension of parking lot lease agreement with Hollywood Casino-Aurora, Inc., for the property located at 201 N. River Street, and known as the HCA-West lot, for an additional two years.
body
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 parties wish to extend the existing lease agreement for the HCA-West lot for an additional two (2) year term, with the option for automatic renewals for one (1) year terms "Lease Extension"; and
WHEREAS, the parties re-negotiated items such as number of parking spaces and amount of rent, which are reflected in this agreement;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Lease Extension contemplated by this Resolution and attached to hereto as Exhibit A shall be and hereby is approved; and further
BE IT RESOLVED, that the Mayor and City Clerk shall be and hereby are authorized and directed to execute said Lease Extension on behalf of the City