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Record #: O2021-4984   
Type: Ordinance Status: Passed
Intro date: 11/9/2021 Current Controlling Legislative Body: Committee on Housing and Real Estate
Final action: 11/17/2021
Title: Second Amendment to Group Room Block Sales Lease Agreement with OQ 168 NM Propco LLC relating to Hotel Julian at 168 N Michigan Ave
Sponsors: Dept./Agency
Topic: AGREEMENTS - Miscellaneous
Attachments: 1. O2021-4984.pdf

WHEREAS, the City of Chicago (the "City") is a home rule unit of government by virtue of the provisions of the Constitution of the State of I llinois of 1970, and as such, may exercise any power and perform any function pertaining to its government and affairs; and

WHEREAS, the City, through its Department of Assets, Information and Services ("DAIS"), and Department of Family and Support Services ("DFSS"), entered into a Group Room Block Sales Agreement dated February 24, 2021, attached hereto as Exhibit A (the "Hotel Lease") with OQ 168 NM Propco LLC, a Delaware limited liability company (the "Hotel Owner"), pursuant to which the City rented all rooms in the Hotel Julian, which is located at 168 Michigan Avenue (the "Hotel"), for the purpose of providing accommodations for residents of congregate living situations in order to prevent the spread of COVID-19; and

WHEREAS, the initial term of the Hotel Lease expired on June 30, 2021 ("Rental Period"), but the Hotel Lease gave the City two (2) options to extend the Rental Period for 30 days each, upon the same terms and conditions applicable to the initial Rental Period, except the City was pemiitted to decrease the number of reserved rooms; and

WHEREAS, the City exercised both options to extend; and

WHEREAS, the last extension period expired on August 29, 2021, and the City and the Hotel Owner entered into a First Amendment to Group Room Block Sales Agreement attached hereto as Exhibit B ("First Amendment"), to extend the Rental Period to September 30, 2021; and

WHEREAS, like the original Hotel Lease, the First Amendment gives the City two additional extension options of 30 days each (ending on November 27, 2021); and

WHEREAS, the DAIS Commissioner has the authority to enter into leases and other temporaiy occupancy agreements for up to 180 days under Section 2-51-050 (12) of the Municipal Code of Chicago; and

WHEREAS, after 180 days, City Council approval is required to extend such temporary occupan...

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