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A resolution approving Amendment One to a Lease Agreement by and between the Metropolitan Government of Nashville and Davidson County acting by and through the Metropolitan Board of Education and Conexion Americas (Proposal No. 2022M-035AG-001).
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WHEREAS, The Metropolitan Government of Nashville and Davidson County, acting by and through the Metropolitan Board of Education, and Conexion Americas previously entered into a lease agreement, approved by BL2022-1511, for the purpose of an EL office and Pre-Kindergarten; and,
WHEREAS, the parties desire to amend the lease agreement; and,
WHEREAS, Amendment One to the lease agreement is attached hereto and incorporated herein; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that the amendment to the lease agreement be approved.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. This amendment one to the Lease agreement between The Metropolitan Government of Nashville and Davidson County and Conexion Americas, which is attached hereto and incorporated herein, is hereby approved.
Section 2. This resolution shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves the first amendment to a lease agreement between the Metropolitan Board of Education (“MNPS”) and Conexion Americas, previously approved by Ordinance No. BL2022-1511. Pursuant to the terms of the agreement, MNPS leases office space, pre-kindergarten space and parking spaces from Conexion Americas. Pursuant to BL2022-1511, any amendment, change, or extension to the lease must be approved by resolution of the Metropolitan Council receiving twenty-one affirmative votes.
The proposed amendment would expand the space leased to MNPS from 8,975 square feet to 9,050 square feet. The total square footage of the EL Office space portion of the premises would be reduced from 265 to 244 square feet. An additional office space comprising 96 square feet would be added to the leased premises. MNPS will pay Conexion Americas no more than $1,750,000 over the course of the lease, an increase from $1,550,000 in the original lease. MNPS will make payments to Conexion Americas as follows:
The amendment provides that MNPS will make payments to Conexion Americas as follows:
EL Office space (244 square feet):
• Year 1: $900 per month ($3.39 per square foot)
• Year 2: $861.32 per month ($3.53 per square foot)
• Year 3: $932.08 per month ($3.82 per square foot)
• Year 4: $1,088.24 per month ($4.46 per square foot)
• Year 5: $1,088.24 per month ($5.02 per square foot)
• Year 6: $1,378.60 per month ($5.65 per square foot)
• Year 7: $1,432.28 per month ($5.87 per square foot)
• Year 8: $1,490.84 per month ($6.11 per square foot)
• Year 9: $1,549.40 per month ($6.35 per square foot)
• Year 10: $1,612.00 per month ($6.61 per square foot)
Pre-Kindergarten space (8,710 square feet):
• Year 1: $9,530.19 per month ($1.09 per square foot)
• Year 2: $9,911.39 per month ($1.13 per square foot)
• Year 3: $10,307.84 per month ($1.18 per square foot)
• Year 4: $10,720.15 per month ($1.23 per square foot)
• Year 5: $11,148.95 per month ($1.28 per square foot)
• Year 6: $11,594.90 per month ($1.33 per square foot)
• Year 7: $12,058.69 per month ($1.38 per square foot)
• Year 8: $12,541.03 per month ($1.43 per square foot)
• Year 9: $13,042.67 per month ($1.49 per square foot)
• Year 10: $13,564.37 per month ($1.55 per square foot)
Additional office space (96 Square Feet):
• Year 1: $415.00 per month ($4.32 per square foot)
• Year 2: $432.00 per month ($4.50 per square foot)
• Year 3: $451.00 per month ($4.69 per square foot)
• Year 4: $469.00 per month ($4.88 per square foot)
• Year 5: $489.00 per month ($5.09 per square foot)
• Year 6: $508.00 per month ($5.29 per square foot)
• Year 7: $530.00 per month ($5.52 per square foot)
• Year 8: $552.00 per month ($5.74 per square foot)
• Year 9: $574.00 per month ($5.97 per square foot)
• Year 10: $597.00 per month ($6.21 per square foot)
The original, unchanged term of the lease agreement is 10 years, began on January 1, 2023, and will end on December 31, 2032.
Fiscal Note: This lease amendment increases Metro Nashville Public School’s rentable square feet from approximately 8,975 to 9,050 from Conexion Americas. The total rent amount will increase, not to exceed, from $1,550,000 to $1,750,000 for the remaining terms of the lease agreement.