Agenda Item # 1
Columbus Consolidated Government
Council Meeting

02/28/17

Agenda Report # 93

TO: Mayor and Council

SUBJECT: CCG Employee Health & Wellness Facility Lease Agreement with INITIATED: Human Resources Department

Recommendation: Approval is requested to amend a 5-year lease agreement for medical office space identified as 2000 10th Avenue, Suite 410 for a CCG Health and Wellness facility.

Background: City Council approved a lease agreement on February 5, 2013 with Resolution No. 44-13. At that time the 2000 building was owned by Columbus Regional Healthcare Systems, Inc. The 2000 building has now been purchased by Physicians Realty Trust, a self-managed publicly traded real estate investment trust, which focuses exclusively on healthcare facilities. In a letter to the Community Reinvestment Director dated November 20, 2014, the new building owner wrote, “All of the terms and conditions of the lease for the space you occupy were assigned by the previous owner to DOC-2000 10TH Avenue MOB, LLC and remain unchanged.” The terms and conditions of the current lease agreement are amended to incorporate an additional 797 square feet and will be added to the Health and Wellness Center facility, Suite 410.

Financial Considerations: The monthly rental rate for the property lease is $2,757.15. The modified monthly rental rate for the property lease will be $4,129.00. Physicians Realty Trust will contribute $30,000.00 towards tenant improvements for Suite 410, which will offset the rental obligations under the Lease Agreement. Upon approval of the amended lease agreement, the terms of the amended lease agreement will be five (5) years. The lease of the Health and Wellness Center is included in the facility’s overall operations costs.

Legal: Authorization of Council to amend this rental contract agreement with Physicians Realty Trust is required.

Recommendation/Actions: Approval is requested to amend a 5-year lease agreement for medical office space identified as 2000 10th Avenue, Suite 410 for a CCG Health and Wellness facility.



Fact Sheet HWC 02142017.docxFact Sheet HWC 02142017.docx

A RESOLUTION
NO. _____


A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDED LEASE AGREEMENT FOR EMPLOYEE HEALTH AND WELLNESS CENTER OFFICE AND MEDICAL SPACE WITH PHYSICIANS REALTY TRUST.

WHEREAS, the Columbus Council authorized the opening of an employee health and wellness center in April 2013; and,

WHEREAS, the terms and conditions of the current lease agreement are amended to incorporate an additional 797 square feet into the existing 2,154 square feet for a total of 2,951 square feet added to the Health and Wellness Center facility, Suite 410; and,

WHEREAS, the 2000 building located in the medical plaza is owned by Physicians Realty Trust. The monthly rental rate for the property lease is $2,757.15. The modified monthly rental rate for the property lease will be $4,129.00. Physicians Realty Trust will contribute $30,000.00 towards tenant improvements for Suite 410, which will offset the rental obligations under the amended Lease Agreement; and,

WHEREAS, the terms of the amended lease agreement shall be five (5) years; and,

WHEREAS, the Columbus Council must authorize the amendment of the lease agreement with Physicians Realty Trust.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to enter into an amended lease agreement with Physicians Realty Trust for the specified medical/office space identified as 2000 Tenth Avenue, Suite 410.
_____________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the ____ day of February 2017 and adopted at said meeting by the affirmative vote of ____ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.




_____________________________ ________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor