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  Consent   1.F.       
Meeting Date: 09/27/2021  
TITLE:    Assignment and Assumption of Lease Agreement
PRESENTED BY: Kevin Iffland
Department: City Hall Administration  

RECOMMENDATION
Staff recommends that the City Council approves and the Mayor signs the Assignment and Assumption of Lease Agreement for the Miller Building.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings has been leasing the Miller Building, 2825 3rd Ave. North, consisting of the entire 4th floor (9785 sq ft) portion of the 6th floor (4579 sq ft) and the 1st floor conference room since August 2013. The original lease was for a 5-year period with two successive options to renew and extend for 2 additional 3 year terms. In June 2021 an amendment to the lease agreement was made with Miller Trois, LLC:

The City desired to amend Lease to add termination option to Section 4 of Lease
The City desired to amend Lease to add obligations to Section 7 of Lease.

The City desired desires to amend Lease to add Surrender Obligations.
The City desired to exercise its second option to renew the Lease.

In September 2021 Yellowstone County purchased the property from Miller Trois, LLC.
This Assignment is being made for the purposes of: (1) assigning the Lease from Miller Trois, LLC to Yellowstone County; (2) obtaining the City of Billings consent to the assignment; and (3) having Yellowstone County release Miller Trois, LLC from all future obligations and duties under the Lease from and after the date of the Assignment to Yellowstone County.
STAKEHOLDERS
City of Billings
Yellowstone County
Miller Trois, LLC
ALTERNATIVES
City Council may:
  • Approve the Assignment and Assumption of Lease Agreement for the Miller Building; or,
  • Not Approve Assignment and Assumption of Lease Agreement for the Miller Building and provide staff with direction.
FISCAL EFFECTS
There are no additional fiscal effects of the Assignment and Assumption of Lease Agreement. Currently, the monthly lease payment is $18,883, which would continue under the assignment and assumption. 

Attachments
Miller Bldg Lease
Miller Bldg 1st Amend
Miller Bldg Lease Assumption


    

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