ACTION REQUESTED:
Title
Communication from the City Manager, Finance Director and Economic Development Department with a Request for the Following:
A. ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET, in the Amount of $100,000.00, to Provide Updates and Improvements to City-Owned Property, Located at 456 FULTON STREET, ROOM 402, Related to Proposed Lease Agreement with the Illinois Police Officers' Pension Investment Fund (IPOPIF);
B. APPROVE a LEASE AGREEMENT Between the City of Peoria and ILLINOIS POLICE OFFICERS' PENSION INVESTMENT FUND (IPOPIF).
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BACKGROUND: The City of Peoria seeks to enter into a lease agreement with the Illinois Police Officers' Pension Investment Fund for office space owned by the City of Peoria at 456 Fulton room 402. The terms of the lease would include updates to the space along with certain leasehold as a condition of entering into a 5-year renewable lease of the space. The updates and improvements would require expenditures of dollars not previously allocated in the budget and would therefore require an amendment to the 2021 REVISED ANNUAL BUDGET in the amount requested above.
The lease agreement between the City of Peoria and IPOPIF would provide office space for IPOPIF's new offices in Peoria. The lease of this space would convert currently vacant space owned by the City of Peoria into revenue producing property for the City of Peoria. The terms of are outlined in the attached lease agreement.
FINANCIAL IMPACT: Funds in the amount requested in the budget amendment of $100,000 will be used to make necessary updates and leasehold improvements. The total of the updates and the improvements will be recaptured via monthly lease payments from IPOPIF. The monthly lease payment of $5,375 would generate sufficient income to justify the incurred expense associated with updates and improvements. The execution of this lease would have a net positive financial impact over the term of the lease.
NEI...
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