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Meeting Date:
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Category:
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SCHOOL FACILITIES MANAGEMENT |
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Type:
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Subject:
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15.6 Authorization to Amend a General Fund Lease Agreement with Hampshire Management Company, LLC |
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District Goals:
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Enclosure:
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File Attachment:
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Rationale:
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By Resolution 17.5 dated August 17, 2022 the Board of Education authorized the Superintendent of Schools to enter into a Lease Agreement with Hampshire Management Company, LLC as landlord for 22,638 square feet of warehouse space at 60 Fullerton Avenue, Yonkers NY for use by the School Facilities and Food Services Departments. This space is contiguous with 25,000 square feet already being rented by the City of Yonkers for its Record Retention Center, Print Shop, Mayor’s Call Center and the 911 Call Center.
This resolution is to cover changes to the original draft lease agreement and to submit the revised lease received from Corporation Counsel on February 3, 2023.
The initial contract term of the Hampshire Management lease will be 10 years plus two optional 5-year renewals. Rent will start at $24,993.13 per month or $299,953.50 per annum increasing annually at 3%.
The Cost of Improvements (COI) by the Landlord is roughly $1.454+/- million. This includes but is not limited to four (4) new walk-in refrigeration units for food services, office cubicles, HVAC systems, fire suppression & fire alarms, general construction work systems and shelving.
This will be paid with a lump sum of $204,000.00 for the refrigeration units and the remaining $1.25+/- million is to be amortized over 5 years as “additional rent” at a cost of $250,000 +/- per year.
Rent and “additional rent” payments are to be deferred until the start of fiscal year 2023-24.
There will be no rent carry over costs during the move which was originally budgeted at $220,000.00. |
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Funding:
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450.5304.100000.9750.B2600 $1,203,500.00 Principal
450.5304.100000.9750.B2700 $246,500.00 Interest
Account: 130.5999.B21N01.1000.B2050
Project: B5150CN110861.B20000A1620 $204,000.00 |
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Resolution
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Ladies and Gentlemen:
WHEREAS: The Yonkers Board of Education is in need of secure and modern warehouse facilities to optimize Food Services and Building & Grounds operations, and
WHEREAS: Such space has been identified at 60 Fullerton Avenue in Yonkers, a building already housing the City of Yonkers Records Retention Center, City Print Shop, Mayor’s Call Center and the 911 Call Center, and
WHEREAS: An acceptable lease has been negotiated with Hampshire Management Company, LLC (Landlord) at $13.25 per square foot increasing at 3% per annum for 22,638 square feet of space, and
WHEREAS: The term shall be for 10 years with the option of two 5-year renewals, and
WHEREAS: Fit-out of the space is required to be completed as Cost of Improvements (COI) by the Landlord at a cost of $1.45 million, and
WHEREAS: Payment of the fit-out is to be by one lump-sum payment of $204,00.00 and the balance of $1.25 million is to paid as COI paid over the initial 60 months of the lease for $250,000.00 per year,
WHEREAS: All terms are detailed in the Lease Agreement pending signature and dating.
NOW THEREFORE BE IT RESOLVED: That the Superintendent of Schools is hereby authorized to enter into a lease agreement with Hampshire Management Company, LLC as landlord for 22,638 square feet of warehouse space at 60 Fullerton Avenue, Yonkers NY for use by the School Facilities and Food Services Departments at a cost of $24,993.99 per month or $299,927.88 per annum, increasing annually at 3%.
AND BE IT FURTHER RESOLVED: The Cost of Improvements by the Landlord is to be by one lump-sum payment of $204,00.00 and the balance of $1,250,000.00 is to be paid as COI paid over the initial 60 months of the lease for $250,000.00 per year paid to Hampshire Management Company, LLC, 969 Midland Avenue, Yonkers NY 10704. |
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Approvals:
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Recommended By: |
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Signed By: |
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John Carr - Executive Director |
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Signed By: |
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Tom Collich - Purchasing Director |
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Signed By: |
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Finance Department - Finance Reviewer |
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Signed By: |
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Elizabeth Janocha - Deputy Commissioner |
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Signed By: |
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John Liszewski - Commissioner |
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Signed By: |
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Matthew Gallagher - Corporation Counsel |
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Signed By: |
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Dr. Edwin M. Quezada - Superintendent of Schools |
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Vote Results:
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| Original Motion | Member Kevin Cacace Moved, Member Gail Burns seconded to approve the Original motion 'Ladies and Gentlemen:
WHEREAS: The Yonkers Board of Education is in need of secure and modern warehouse facilities to optimize Food Services and Building & Grounds operations, and
WHEREAS: Such space has been identified at 60 Fullerton Avenue in Yonkers, a building already housing the City of Yonkers Records Retention Center, City Print Shop, Mayor’s Call Center and the 911 Call Center, and
WHEREAS: An acceptable lease has been negotiated with Hampshire Management Company, LLC (Landlord) at $13.25 per square foot increasing at 3% per annum for 22,638 square feet of space, and
WHEREAS: The term shall be for 10 years with the option of two 5-year renewals, and
WHEREAS: Fit-out of the space is required to be completed as Cost of Improvements (COI) by the Landlord at a cost of $1.45 million, and
WHEREAS: Payment of the fit-out is to be by one lump-sum payment of $204,00.00 and the balance of $1.25 million is to paid as COI paid over the initial 60 months of the lease for $250,000.00 per year,
WHEREAS: All terms are detailed in the Lease Agreement pending signature and dating.
NOW THEREFORE BE IT RESOLVED: That the Superintendent of Schools is hereby authorized to enter into a lease agreement with Hampshire Management Company, LLC as landlord for 22,638 square feet of warehouse space at 60 Fullerton Avenue, Yonkers NY for use by the School Facilities and Food Services Departments at a cost of $24,993.99 per month or $299,927.88 per annum, increasing annually at 3%.
AND BE IT FURTHER RESOLVED: The Cost of Improvements by the Landlord is to be by one lump-sum payment of $204,00.00 and the balance of $1,250,000.00 is to be paid as COI paid over the initial 60 months of the lease for $250,000.00 per year paid to Hampshire Management Company, LLC, 969 Midland Avenue, Yonkers NY 10704.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 8 Nay: 0. | | The motion Carried 8 - 0 | | | | | Dr. Rosalba Corrado Del Vecchio | Yes | | Kevin Cacace | Yes | | Rev. Steve Lopez | Yes | | Dr. John Castanaro | Yes | | Gail Burns | Yes | | Sheila Greenwald | Yes | | Lawrence Sykes | Yes | | Rosemarie Linton | Yes | |
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