Contract - Lease for Human Rights Commissions Office - Key S.B., LLC

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City of South Bend Legal Excellence Accountability Innovation Inclusion Empowerment Visit County-City Building 227 W Jefferson Blvd, Suite 1200 S South Bend, IN 46601 Phone (574) 235-9241 Email: jdorbin@southbendin.gov Website: Southbendin.gov Memorandum To: Board of Public Works, Theresa Heffner, Michael Schmidt, Jenna Throw From: John W. Dorbin, Jr., Assistant City Attorney Subject: Human Rights Commission: Professional Office Space Lease Suite 801: 4,795 square feet, Key Bank Tower, 202 S. Michigan Street Date: November 18, 2024 The Human Rights Commission’s current offices are located at the Michiana Eye Center building. The facilities are 2,975 square feet of professional office space, consisting of 8 offices and a conference room, located at 319 N. Niles Avenue. That lease has expired and the HRC is currently in month-to-month holdover status. The City negotiated with the current landlord and cross shopped other available offices. The outcome of that process was the negotiation of the lease before you, Suite 801 in the Key Bank Building. This suite is 4,795 square feet of professional office space, consisting of 10 offices and two conference rooms, with some additional features the current space does not offer. Because the leases are structured differently (one is a traditional lease with rent plus common area maintenance charge, [“CAM”] and the other a full-service gross lease) the best comparison is the projected “all in” costs for each space, which includes such things as rent, cleaning, security, utilities, etc... On that basis, the projected all in costs are within $380 per month when comparing the current space at the Eye Center to Suite 801. Rent for Suite 801 is fixed at $5,300 for the first two years and $5,618 per month for year three. The lease contains an option for the City to renew for an additional 24 months thereafter, if it wishes. Suite 801 is preferred over renewal of the current offices for the following reasons: • Two more offices and one more conference room, plus space for two cubicles, ensuring sufficient workspace for all employees and visitors, without the need for office sharing. • Limited access (code) bathrooms compared to bathrooms open to the public. • Locking file storage room, eliminating the need to store files in offices and hallways, some unsecured. • Separate break room/kitchenette with a sink for employee use. • Connected to the future City Hall building by elevated walkway, providing a convenient and centralized access for citizens and City employees.