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TO: Mayor Richard C. Irvin
FROM: Jessica L. Kalal, Assistant Corporation Counsel
DATE: April 16, 2020
SUBJECT:
Requesting approval of a lease amendment to the current lease between the City of Aurora and Subway, for the property located at 5 E. Downer Place, Aurora, Illinois, to allow for Subway and the Franchisee/tenant to defer 50% of its rent for both the months of April and May 2020, to be repaid in monthly installments over a twelve month period, due to Subway's lost revenues as a result of COVID-19.
PURPOSE:
To allow Subway and its Franchisee/tenant to pay 50% less rent for the months of April and May, 2020, due to COVID-19, and permitting Subway to repay the deferred rent in twelve equal monthly installments from June 1, 2020 through May 31, 2021.
BACKGROUND:
Subway's corporate office reached out to the Law Department with the proposed amendment which sets forth the 50% rent deferral for two months due to its struggling and reduced revenues as a result of COVID-19.
DISCUSSION:
Entering into this lease amendment will assist a local business during the COVID-19 pandemic, while still requiring Subway and its Franchisee/tenant to repay the deferred rent over a twelve month period. There is no financial loss to the City due to the repayment provisions.
IMPACT STATEMENT:
The impact on the community is positive, as this lease amendment will assist a local business during this pandemic. The impact on the City is minimal, as the deferred rent will be required to be repaid as set forth in the proposed amendment.
RECOMMENDATIONS:
I request the proposed Resolution approving the lease amendment be adopted.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving an amendment to the existing lease between the City of Aurora and Subway for the property located at 5 E. Downer Place, Aurora, Illinois, to allow for a 50% deferral on Subway's rent for the months of April and May 2020 due to COVID...
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