Title
Lease Agreement Renewal for 1795 Washington Street (Tax Lot 1402) - Clackamas Landscape Supply, Inc.
Body
RECOMMENDED ACTION (Motion):
Staff recommends that the Urban Renewal Commission approve the lease renewal agreement for Clackamas Landscape Supply, Inc.
BACKGROUND:
The City of Oregon City Urban Renewal Agency (URA) is the owner of real property located at 1795 Washington Street (Tax Lot 1402) and the URA leases this property to Clackamas Landscape Supply, Inc (CLS). The existing commercial lease expired on December 31, 2017 and requires renewal in order for CLS to remain operational at this site.
A new Commercial Lease Agreement is being proposed with a lease period of three years beginning January 1, 2018 and expiring December 31, 2020 (Attachment). the base monthly lease rate for the 2018 calendar year is $3,483.02 with the inclusion of an annual 2.5% increase for each of the subsequent years during the lease term. There is an option for the tenant to renew the Lease after the three year term for two (2) successive terms of one year each. Lease payments shall be made to the URA on the first day of each month until the lease term has expired, at which time a new Lease Agreement will be negotiated.
Approval by the URA must be obtained in order for the Lease Agreement to take effect.