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HomeMy WebLinkAbout#06 - Lease ExtensionSTAFF REPORT DATE: August 20, 2019 CONSENT AGENDA ITEM: Zignego Insurance Lease Extension SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: When the City purchased the Brookfield building in April, it assumed the leases of current tenants. Although the EDA took over the ownership the building the leases stayed with the City. The last time rent amounts were adjusted was January 1, 2017. ISSUE BEFORE COUNCIL: Should the City Council approve the lease agreement extension with Zignego Insurance? PROPOSAL: Included in your packet is a lease agreement extension for Zignego Insurance. Their current lease expires 12/31/20. The proposal would provide a one year extension unless they give a 3 month notice to cancel. The new rent amount is $1,980/month with is consistent with other current leases. FISCAL IMPACT: Annual increase in revenue of $2,760. OPTIONS: 1) Approve the lease extension agreement with Zignego Insurance 2) Amend and then approve the lease extension agreement with Zignego Insurance 3) Do not approve the lease extension agreement with Zignego Insurance RECOMMENDATION: If removed from the consent agenda: “Motion to approve the lease extension agreement with Zignego Insurance.” ATTACHMENTS: • Zignego Insurance Lease Extension Agreement