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HomeMy WebLinkAboutResolution 33-21 To: Members of Dublin City Council From: Dana L. McDaniel, City Manager Date: May 18, 2021 Initiated By: Megan O’Callaghan, Deputy City Manager/Chief Finance and Development Officer Re: Resolution 33-21 – Authorizing the City Manager to Enter into a First Amendment of the Lease Agreement Between the City of Dublin and the Dublin Chamber of Commerce Summary On March 30, 2020, Dublin entered into a new Lease Agreement (the “Lease”) (see attached) with the Dublin Chamber of Commerce (the “Chamber”) for the building located at 129 S. High Street. Pursuant to Section 21 of the Lease, Dublin and the Chamber agreed to make certain improvements to the building and to share the costs of such improvements as listed in Exhibit C to the Lease. The improvements will provide for a vibrant, flexible, collaborative environment to accommodate the Chamber’s operations and better serve members and the Dublin business community. Alterations and updates contemplated to the floorplan include the Chamber suite, public meeting room, community meeting room with kitchen, ADA compliant public restrooms, and renovated and updated building entrance and interior hallway areas. The improvements contemplated by the Lease also included construction of a Downtown Gateway Pavilion that would serve as the public outdoor living room. The leasehold improvement costs were estimated to be $450,000, inclusive of furnishings. Staff and the Chamber decided to implement the improvements in two phases; the first phase is the improvements to the building and the second phase is the pavilion. The first phase improvements to the building were designed in collaboration with the Chamber and bid on March 22, 2021. Staff is presenting Resolution 32-21 accepting the lowest and best bid for the Chamber of Commerce Renovation and Addition Project to City Council on May 24, 2021. Miles- McClellan Construction Company submitted the lowest and best bid of $471,100. The cost of the improvements to the building contemplated by the Lease exceeds the budgeted amounts and both Dublin and the Chamber will share in the cost overruns attributable to each party pursuant to the Lease. The City’s total contribution to this Project is determined to be $394,740. The Chamber’s total contribution is $76,360 plus furnishings (which are estimated to cost $75,000). The Architectural Review Board reviewed and provided informal feedback on the second phase Downtown Gateway Pavillion at their August 26, 2020 meeting. Although the members were supportive of the creation of a public gathering and seating space that was open to the public, they expressed concerns that the proposed structure and its design overwhelmed the existing building and dominated the street frontage. They also expressed concerns about the increase in lot coverage with the proposal and recommended the applicant investigate other alternatives to meet the requirements. The Chamber and staff agree construction of the second phase Downtown Gateway Pavilion, which was contemplated as part of the improvements in the Lease and estimated to cost $65,000, is now unfeasible to build as designed. Accordingly, staff and the Chamber have agreed to amend the Lease removing the Pavilion from the list of improvements in both Exhibits B and C to the Lease. Should Council approve this Resolution, the City will no longer be responsible for the Pavillion and Dublin will Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017-1090 Phone: 614.410.4400 • Fax: 614.410.4490 Memo Resolution 33-21 – Authorizing the City Manager to Enter into a First Amendment of the Lease Agreement Between the City of Dublin and the Dublin Chamber of Commerce May 18, 2021 Page 2 of 2 use the funding for construction of the Pavilion to go towards offsetting Dublin’s portion of the cost overruns for the phase one improvements to the building. The balance of the Lease remains unchanged. Recommendation Staff recommends Council approval of Resolution 33-21 authorizing the City Manager to enter into a First Amendment of the Lease Agreement between the City of Dublin and the Dublin Chamber of Commerce. 1 FIRST AMENDMENT TO LEASE This FIRST AMENDMENT TO LEASE (the “Amendment”), dated and effective as of the last date of signature below (the “Effective Date”), is between the City of Dublin (the “Landlord”), and the Dublin Chamber of Commerce (the “Tenant”). RECITALS: WHEREAS, the Landlord and Tenant entered into a Lease Agreement (the “Lease”) (Exhibit A), for the Premises described in the Lease; and WHEREAS, pursuant to Section 21 of the Lease, the Landlord and Tenant agreed to make certain improvements to the building and share the costs of such improvements as listed in Exhibit C to the Lease; and WHEREAS, bids for the improvements to the building contemplated by the Lease exceeded the budgeted amount; and WHEREAS, both the Landlord and the Tenant have committed to pay portions of the overages attributable to each party pursuant to the Lease; and WHEREAS, the Landlord and the Tenant both agree that the construction of the Downtown Gateway Pavilion, which was contemplated as part of the improvements, is now unfeasible to build as designed; and WHEREAS, the Landlord was responsible for the costs of construction of the Pavilion and those funds ($65,000) will now go towards offsetting the cost overruns attributed to the Landlord for the improvements noted on Exhibit C to this Amendment; and WHEREAS, the parties desire to amend Exhibits B and C of the Lease as set forth in this Amendment; and WHEREAS, terms capitalized, but not defined in this Amendment, shall be given the respective meanings ascribed to them in the Lease; NOW, THEREFORE, the parties agree as follows: 1. Exhibit B is hereby modified to remove any reference to The Downtown Gateway Pavilion and the attached Exhibit B shall replace the original Exhibit B of the Lease. 2. Exhibit C is hereby modified to strike Section VII. Downtown Gateway Pavilion in its entirety and the Landlord shall have no responsibility to construct the Pavilion. The attached Exhibit C shall replace the original Exhibit C of the Lease. The Landlord shall reallocate the $65,000 set aside for the construction of the Pavilion to instead pay for the cost overruns attributable to the other portions of the Project for which the Landlord is responsible. 2 3. This Amendment may be executed in multiple counterparts, each of which shall constitute an original and all of which taken together shall constitute one and the same agreement binding upon the parties, notwithstanding that all the parties are not signatories to the same counterpart. In order to facilitate the finalization of this Amendment, the parties agree that signatures transmitted via e-mail or by docusign in a "PDF" format without notary acknowledgement may be used in place of original signatures on this Amendment. Each party intends to be bound by such party's e-mail or docusign "PDF" format signature on this Amendment, is aware that the other parties are relying on such party's facsimile or "PDF" format signature, and hereby waives any defenses to the enforcement of this Amendment based upon the form of signature or the lack of a notary acknowledgement. 4. Except as modified by this Amendment, the Lease remains unchanged, valid, and in full force and effect. In the event of any ambiguity or inconsistency between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall control. Captions are included for convenient reference only. Each party hereby represents and warrants that this Amendment has been duly authorized, executed and delivered by and on its behalf and constitutes such party’s valid and binding agreement in accordance with the terms hereof. This Amendment shall bind and inure to the benefit of the successors and assigns of the parties. Neither party shall be deemed the drafter of this Amendment. This Amendment shall be governed by Ohio law without regard to conflict of laws principles. [Signature page follows] 3 IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date, as established below. LANDLORD: By: ______________________________ Dana L. McDaniel, City Manager Date: _____________________________ TENANT: By: ______________________________ Dublin Chamber of Commerce Approved as to Form: By: _______________________________ Jennifer D. Readler, Law Director ANS/ANS/02380527.1 EXHIBIT A EXHIBIT A EXHIBIT C Estimated Leasehold Improvement Costs SCOPE Estimated Cost Cost Allocation Landlord / Tenant I. Dublin Chamber Suite $70,000 $0/$70,000 Update Existing Offices (x2) $30,000 New full lite glass doors, frames and hardware to offices. New carpeting in offices. Base to be standard profile cove vinyl. Add power and IT pathways for new workstations and furniture layout. Paint all walls and base casings. Replace all lighting with LED. Style to match new décor. Furnishings Update Front Room (original historic structure) $20,000 Add new full lite glass door and hardware. Construct full height partition with new door, frame and hardware for secured Storage Room. New lay-in ceiling. New carpeting in Reception Area. Base to be standard profile cove vinyl. Add power and IT pathways for new workstation and furniture layout Paint all walls in Reception Area. Replace all lighting with LED. Style to match new décor. Furnishings $20,000 II.Public ‘BIZ BISTRO’ + ‘Convene’ Meeting Room $70,000 $50,000/$20,000 Remodel area for Business Gathering Space $50,000 Remove existing glass wall and door at hallway. Add Hospitality Center to include granite top with sink, under-cabinets, appliances, power, decorative tile wall, pathway and power for flat screen monitor. Replace flooring with ceramic plank tile (Bistro) and carpet (Convene) to match new décor. Replace all existing base with profile vinyl base. New full lite door, frame and casing. Paint all walls, ceiling and trim to match new décor. Rework HVAC ductwork. Rework lighting for new layout. Fixtures to be LED. Add Wi-Fi and charging stations. Furnishings $20,000 III.Public Community Meeting Room with Kitchen:$75,000 $50,000/$25,000 Remodel Community Meeting Room $30,000 Remove the existing closet and kitchenette. Relocate wall for new alcove in Business Bistro. Replace/reposition existing doors with new full lite glass doors and hardware. New carpet and profile vinyl base. Paint all walls, ceiling and trim. Replace all lighting with LED. Style to match new décor. Add pathway and power for pendent mounted flat screen monitors x2. Construct new Kitchen $25,000 Repurpose the existing Women’s Toilet Room into Kitchen for Community Room use. Island, Cabinets, granite counter tops, tile wet wall, ceramic plank flooring, profile vinyl base, appliances, LED lighting, painted walls, ceiling, trims. Finishes to match new décor. Furnishings $20,000 IV. Public Toilet Rooms $80,000 $80,000/ $0 Construct ADA compliant Public Toilet Rooms $80,000 Work to include adding 200 SF to the building and repurposing the existing Men’s Toilet Room to accommodate ADA compliant men’s and women’s restrooms. To include vinyl plank flooring, tile wet wall, metal toilet partitions, painted walls, ceilings. Fixtures, finishes, lighting, doors/hardware to match new décor. The existing housekeeping closet to remain. V. New Building Entrance $30,000 $30,000/ $0 Expand Building Useable Area and Relocate Front Entry $30,000 Repurpose Existing Entrance Porch to Interior Space Construct new insulated concrete foundation and slab. Remove existing patio wall. Construct new insulated window wall with finishes to match existing. Construct new building entrance. Work to include new concrete stoop, covered porch roof, new full lite storefront entrance door with side light to include ADA compliant hardware, threshold, power door operator, push plate actuator and electronic card reader. VI. Interior Hallway Areas $60,000 $60,000 / $0 Front Hallway $25,000 Replace flooring with ceramic plank tile to match new décor. Replace all existing base with profile vinyl base. New doors, frames and casings. Ceilings to be wood plank. Paint all walls to match new décor. Replace all lighting with LED. Style to match new décor. Add pathway and power for flat screen monitors Parking Lot Entrance & Hallway $35,000 Reconfigure for ADA compliant Ingress/Egress. Install new full lite storefront entrance door to feature ADA compliant hardware, threshold, power door operator, push plate actuators, electronic card reader and video doorbell. Remove hallway storage closets. Straighten wall. Replace all flooring with ceramic plank tile to match new décor. Replace all existing base with profile vinyl base. Replace hallway door and mechanical closet doors with new. Paint all walls, doors, frames and casings. Ceiling to be wood plank. to match new décor. Replace all lighting with LED. New outdoor lighting Style to match new décor. VII. Downtown Gateway Pavilion $65,000 $65,000/ $0 Construct Public Outdoor Living Room $50,000 Prepare exterior landscape area for patio Construct 18’x18’ covered pavilion on 20’x20’ concrete patio. Add decorative lighting, café seating, Wi-Fi, charging stations, new building signage, landscaping Furnishings $15,000 EXHIBIT C Estimated Leasehold Improvement Costs SCOPE Estimated Cost Cost Allocation Landlord / Tenant I. Dublin Chamber Suite $70,000 $0/$70,000 Update Existing Offices (x2) $30,000 New full lite glass doors, frames and hardware to offices. New carpeting in offices. Base to be standard profile cove vinyl. Add power and IT pathways for new workstations and furniture layout. Paint all walls and base casings. Replace all lighting with LED. Style to match new décor. Furnishings Update Front Room (original historic structure) $20,000 Add new full lite glass door and hardware. Construct full height partition with new door, frame and hardware for secured Storage Room. New lay-in ceiling. New carpeting in Reception Area. Base to be standard profile cove vinyl. Add power and IT pathways for new workstation and furniture layout Paint all walls in Reception Area. Replace all lighting with LED. Style to match new décor. Furnishings $20,000 II. Public ‘BIZ BISTRO’ + ‘Convene’ Meeting Room $70,000 $50,000/$20,000 Remodel area for Business Gathering Space $50,000 Remove existing glass wall and door at hallway. Add Hospitality Center to include granite top with sink, under-cabinets, appliances, power, decorative tile wall, pathway and power for flat screen monitor. Replace flooring with ceramic plank tile (Bistro) and carpet (Convene) to match new décor. Replace all existing base with profile vinyl base. New full lite door, frame and casing. Paint all walls, ceiling and trim to match new décor. Rework HVAC ductwork. Rework lighting for new layout. Fixtures to be LED. Add Wi-Fi and charging stations. Furnishings $20,000 III. Public Community Meeting Room with Kitchen: $75,000 $50,000/$25,000 Remodel Community Meeting Room $30,000 Remove the existing closet and kitchenette. Relocate wall for new alcove in Business Bistro. Replace/reposition existing doors with new full lite glass doors and hardware. New carpet and profile vinyl base. Paint all walls, ceiling and trim. Replace all lighting with LED. Style to match new décor. Add pathway and power for pendent mounted flat screen monitors x2. Construct new Kitchen $25,000 Repurpose the existing Women’s Toilet Room into Kitchen for Community Room use. Island, Cabinets, granite counter tops, tile wet wall, ceramic plank flooring, profile vinyl base, appliances, LED lighting, painted walls, ceiling, trims. Finishes to match new décor. Furnishings $20,000 IV. Public Toilet Rooms $80,000 $80,000 / $0 Construct ADA compliant Public Toilet Rooms $80,000 Work to include adding 200 SF to the building and repurposing the existing Men’s Toilet Room to accommodate ADA compliant men’s and women’s restrooms. To include vinyl plank flooring, tile wet wall, metal toilet partitions, painted walls, ceilings. Fixtures, finishes, lighting, doors/hardware to match new décor. The existing housekeeping closet to remain. V. New Building Entrance $30,000 $30,000 / $0 Expand Building Useable Area and Relocate Front Entry $30,000 Repurpose Existing Entrance Porch to Interior Space Construct new insulated concrete foundation and slab. Remove existing patio wall. Construct new insulated window wall with finishes to match existing. Construct new building entrance. Work to include new concrete stoop, covered porch roof, new full lite storefront entrance door with side light to include ADA compliant hardware, threshold, power door operator, push plate actuator and electronic card reader. VI. Interior Hallway Areas $60,000 $60,000 / $0 Front Hallway $25,000 Replace flooring with ceramic plank tile to match new décor. Replace all existing base with profile vinyl base. New doors, frames and casings. Ceilings to be wood plank. Paint all walls to match new décor. Replace all lighting with LED. Style to match new décor. Add pathway and power for flat screen monitors Parking Lot Entrance & Hallway $35,000 Reconfigure for ADA compliant Ingress/Egress. Install new full lite storefront entrance door to feature ADA compliant hardware, threshold, power door operator, push plate actuators, electronic card reader and video doorbell. Remove hallway storage closets. Straighten wall. Replace all flooring with ceramic plank tile to match new décor. Replace all existing base with profile vinyl base. Replace hallway door and mechanical closet doors with new. Paint all walls, doors, frames and casings. Ceiling to be wood plank. to match new décor. Replace all lighting with LED. New outdoor lighting Style to match new décor. EN03171.Public-03171 4831-9230-0521v1