04-0223R

RESOLUTION AUTHORIZING LEASE AGREEMENT WITH AMENDOLA CONSTRUCTION COMPANY FOR THE LINCOLN PARK TOOLHOUSE PROPERTY.

BY COUNCILOR STOVER:

RESOLVED, that the proper city officials are authorized to enter into a lease agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ___________ with Amendola Construction Company for the leasing of the Lincoln Park Toolhouse property at no cost as part of the SMDC project.


STATEMENT OF PURPOSE:  This resolution authorizes the execution of a lease for up to two years with the Amendola Construction Company, leasing it the Lincoln Park Toolhouse property at no cost. This is the same property that is being sold to DEDA for resale to the Amendola Construction Company as part of the SMDC Project (see Ordinance No. 04-015 O). The Toolhouse property will become the site into which Amendola will relocate its operations from the property it presently occupies on the site of the new First Street Medical Facilities Project.

The lease will fulfill two purposes. The first of these is to allow Amendola to take possession and occupancy of the Toolhouse property immediately after the ordinance authorizing sale has been approved by the City Council, during the mandatory 30 day period before the ordinance becomes effective. This, in turn, is important to the SMDC because Amendola has 60 days in which to relocate from its old property after it gains control of the new site. If Amendola could not start moving until the effective date of the Ordinance (May 18th) and didn't complete that move for 60 days, construction of the new facility would be delayed until the end of July, a delay which will materially hurt the Medical Facilities project.

On the other hand, a resolution leasing the property is effective upon its passage and signature by the mayor. Therefore the lease term could, and would, commence on April 13th; Mr. Amendola has promised that if that is done, he will be ready to turn over his old building for demolition by the end of May, allowing demolition to commence almost two months earlier than would be the case if possession were predicated on the effective date of the ordinance.

Secondly, the lease deals with the unlikely possibility that Ordinance No. 04-015 O is approved by the Council but that its effectiveness is delayed or defeated by a petition for a referendum under Section 52 of the Charter. A successful petition against the ordinance filed prior to May 16th would delay its effective date at least until the next election or November 9th, 2005; and of course, if successful, would prevent the sale of the property to DEDA (and then to Amendola) altogether. Mr. Amendola believes that it could easily take him two years to find a new piece of property acceptable to him for a new warehouse building, to complete the purchase of that property and to construct a new building to permanently relocate into. This lease would provide the time necessary for him to accomplish those tasks and therefore provides the assurances necessary for him to agree to move out of his present property prior to closing on the Toolhouse Building.