Agenda Item # 2


Columbus Consolidated Government
Council Meeting

January 10, 2017

Agenda Report # 77

TO: Mayor and Council

SUBJECT: Addendum to Lease Agreement – CCG Employee Health/Wellness Facility with Physicians Realty Trust

INITIATED BY: Community Reinvestment Department


Recommendation: Approval is requested to execute an Addendum to the Medical Office Lease Agreement for the CCG Employee Health/Wellness Facility with Physicians Realty Trust.

Background: The City entered into a lease agreement on February 13, 2013 to occupy office space on the Columbus Regional Medical Center campus located at 2000 10th Avenue, Suite 410 for the Employee Health/Wellness Center. The original lease is a five (5) year term which is set to expire on March 31, 2018. In 2014, the building located at 2000 10th Avenue was purchased by Physicians Realty Trust. Council approved a resolution in February 2015 acknowledging the new owner and that the terms and conditions of the lease did not change. The current monthly rental rate is $2,757.15 and the utility recovery is $390 monthly.

The current facility is in need of repairs to include mandatory ADA modifications, and the current provider, CareATC is in need of additional space. The landlord has agreed to perform the repairs and provide the additional space needed by merging Suite 410 with Suite 405 which will provide an additional 797 square feet for a total of 2,951 square feet. The modified rent will be $16.79 per square foot for a total of $4,129 per month plus utilities. There will be an annual escalation of 2.5%. The new rates will not take effect until all of the renovations are complete. At the time a new 60-month lease term will begin. The landlord will provide up to $30,000 for the repairs/modifications.

Analysis: The extra space and the repairs (to include ADA modifications) are necessary in order for the CCG Employee Health/Wellness Center to run efficiently.

Financial Considerations: The rental rate will increase from $15.36 to $16.39 per square foot. The additional expenses will be paid from the Health Fund.

Legal Considerations: Any lease agreements/addendums involving the City requires Council approval.

Recommendations/ Actions: Approve the Resolution authorizing the City Manager to execute an Addendum to the Medical Office Lease Agreement for the CCG Employee Health/Wellness Facility with Physicians Realty Trust.


Medical Office Lease Agreement.pdfLetter of Intent - Medical Office Lease.pdf


A RESOLUTION
NO. ______

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN ADDENDUM TO THE MEDICAL OFFICE LEASE AGREEMENT FOR THE CCG EMPLOYEE HEALTH/WELLNESS FACILITY WITH PHYSICIANS REALTY TRUST.

WHEREAS, the City entered into a lease agreement on February 13, 2013 to occupy office space on the Columbus Regional Medical Center campus located at 2000 10th Avenue, Suite 410 for the Employee Health/Wellness Center; and,

WHEREAS, in 2014, the building located at 2000 10th Avenue was purchased by Physicians Realty Trust and was approved by resolution in February 2015 with the same terms; and,

WHEREAS, the current facility is in need of repairs to include mandatory ADA modifications, and the current healthcare provider, CareATC, is in need of additional space; and,

WHEREAS, the landlord has agreed to make all of the necessary repairs and provide additional space for an increase in the monthly rental rate and an extension of the current lease term for an additional 60 months.

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

That the City Manager is hereby authorized to execute an Addendum to the Medical Office Lease Agreement for the CCG Employee Health/Wellness Facility with Physicians Realty Trust.
_________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________, 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 Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.



_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor