Record #: O2022-1995   
Type: Ordinance Status: Passed
Intro date: 6/22/2022 Current Controlling Legislative Body: Committee on Housing and Real Estate
Final action: 7/20/2022
Title: Second amendment to lease agreement with United States Coast Guard USA reducing square footage term and granting two ten-year term extensions for occupancy of Chicago Marine Safety Station at 250 North Breakwater
Sponsors: Lightfoot, Lori E.
Topic: AGREEMENTS - Lease
Attachments: 1. O2022-1995.pdf
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OFFICE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT
MAYOR
June 22, 2022










TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO


Ladies and Gentlemen:

At the request ofthe Commissioner of Assets, Information and Services, I transmit herewith ordinances authorizing the execution of lease agreements with various entities.

Your favorable consideration of these ordinances will be appreciated.


Very truly yours

ORDINANCE


BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:


SECTION 1: On behalf of the City of Chicago as Landlord, the Commissioner of the Department of Assets, Information & Services is authorized to execute the Second Amendment to the Lease Agreement with the United States of America, acting by and through the United States Coast Guard, to reduce the square footage ofthe leased premises and to grant two ten-year extension options to extend the term of the Lease for the Coast Guard's use and occupancy of space within the Chicago Marine Safety Station, located at the mouth of the Chicago River at Lake Michigan, with an approximate address of 250 North Breakwater; such agreement to be approved as to form and legality by the Corporation Counsel in substantially the following form:
SECOND AMENDMENT TO LEASE
THIS SECOND AMENDMENT TO LEASE (this "Second Amendment") is made and
entered into this day of , 2022, by and between the CITY OF CHICAGO, an
Illinois municipal corporation and home rule unit of government (hereinafter referred to as "Landlord") and THE UNITED STATES OF AMERICA, acting by and through THE UNITED STATES COAST GUARD (hereinafter referred to as "Tenant").

RECITALS
WHEREAS, Landlord is owner of the Marine Safety Station, occupying an area of approximately 270 feet by 300 feet, constructed above the bed of Lake Michigan at the north end of the inner Chicago Harbor breaktwater wall at 250 North Breakwater Access Road, Chicago, Cook County, Illinois (the "Station"); and
WHEREAS, Landlord and Tenant are parties to that certain Lease No. HSCG84-04-L-C34010 dated January 23, 2004 (the "Original Lease"), which was amended by that certain Lease Amendment dated March 4, 2011 (the Original Lease and Lease Amendment shall hereinafter be referred to as the "Lease"), permitting Tenant exclusive use of approximately 3,000 square feet of space and shared use of common area space measuring approximately 5,000 square fect (together, the "Premises") at the Station; and

WHEREAS, Landlord seeks a reduction in Tenant's Premises to accommodate the needs of Landlord's Fire Department for additional bunk space and Tenant is agreeable to said Premises reduction; and
WHEREAS, the Term of the Lease is set to expire on September 30, 2025, Tenant seeks two additional 10 year extension options, and Landlord is agreeable to granting said options to extend the Term; and

WHEREAS, Landlord and Tenant desire to modify certain terms and conditions of the
Lease.

NOW, THEREFORE, in consideration of the mutual covenants of the parties herein and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, Landlord and Tenant agree as follows:
Recitals and Terms of Art. The recitals are incorporated herein by reference and made a part of this Second Amendment. All capitalized terms used herein shall have the same meanings as they do in the Lease, unless otherwise expressly provided herein.
Options to Extend the Term. Tenant is granted two (2) additional ten (10) year extension options to extend the Term of the Lease from October 1, 2025, through September 30, 2035, and from October 1, 2035, through September 30, 2045, upon the same terms and conditions of the Lease.
Premises Reduction. Per Landlord's request for additional space, Tenant hereby relinquishes rooms 304 (bunk room) and 305 (restroom) as identified on the floorplan attached

hereto as Exhibit C. Exhibit A of the Original Lease (dated January 23, 2004) contains a Program for the Marine Safety Station that does not correspond to the room numbers listed on Exhibit C of this Second Amendment due to the room numbers having been reassigned during renovation of the Station in 2005, after execution of the Original Lease. Therefore, to correct the inconsistency, the attached Exhibit D contains a Revised Program for the Marine Safety Station with room numbers that correspond with the room numbers on the floor plan on the attached Exhibit C. Furthermore, the Lease Amendment (dated March 4, 2011), reducing Tenant's Premises by removal of berth 4 (corresponding with room 308 in Exhibit A of the Original Lease), misstated the room number that was actually vacated by Tenant. The room that was vacated by Tenant in 2011 corresponds with room 302 as depicted on Exhibit C of this Second Amendment. From and after the date of this Second Amendment, Tenant's Premises is restated to be:
Approximately 2,682 square feet of exclusive space, as specified on Exhibit D attached hereto, and shared use of approximately 5,000 square feet of common area space at the Chicago Marine Safety Station, a building constructed above the bed of Lake Michigan occupying an area of approximately 270 feet by 300 feet at the north end of the inner Chicago Harbor breaktwater wall at 250 North Breakwater Access Road, Chicago, Cook County, Illinois.
The above Premises shall be used to calculate adjustment rent (as contained in Section 3.2 of the Original Lease) applicable to the fiscal year ending September 30, 2022.
Change to Name of Department. The Department of Fleet & Facility Management of the City of Chicago has merged with another department and the name of the new department is the Department of Assets, Information & Services. All reference in the Lease to the Department of Fleet & Facility Management shall now refer to the Department of Assets, Information & Services. Landlord's notice address shall henceforth be:
Notice Address: City of Chicago
Department of Assets, Information & Services Bureau of Asset Management Office of Real Estate Management 2 North LaSalle Street, Suite 200 Chicago, Illinois 60602

With a copy to: City of Chicago
Department of Law
121 North LaSalle Street, Suite 600
Chicago, Illinois 60602
Attn: Real Estate and Land Use Division
Reaffirmation of Lease. Except to the extent expressly set forth in this Second Amendment, all ofthe terms and conditions of the Lease shall remain in full force and effect and are hereby ratified and affirmed. If there is any conflict between the terms and provisions of the

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Lease and the terms and provisions of this Second Amendment, the terms and provisions of this Second Amendment shall control.
Severability. In the event that any provision of this Second Amendment shall at any time be found to be invalid or otherwise rendered unenforceable, such provision shall be limited to the extent necessary to render the same valid, or shall be excised from this Second Amendment, as the circumstances require, and this Second Amendment shall be construed as if said provision had been incorporated herein as so limited or as if said provision had not been included herein, as the case may be.
Counterparts. This Second Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Second Amendment may be executed and delivered via email or PDF.
Effectiveness. This Second Amendment is not effective unless and until the same is signed and delivered by both Tenant and Landlord.




[SIGNATURES APPEAR ON THE FOLLOWING PAGES]





























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IN WITNESS HEREOF, the parties hereto have caused this Second Amendment to be duly executed on the date first written above.

LANDLORD:

THE CITY OF CHICAGO,
an Illinois municipal corporation and home rule unit of government

DEPARTMENT OF ASSETS, INFORMATION & SERVICES


By:
Commissioner


APPROVED AS TO FORM AND LEGALITY: BY: DEPARTMENT OF LAW


By:
Assistant Corporation Counsel Real Estate Division

TENANT:

THE UNITED STATES GOVERNMENT acting by and through THE UNITED STATES COAST GUARD

By:_ Name: Title:














|1010|EXHIBIT C
floor plans with room numbers






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105
103
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/ 131


H 106 USCG Storage




CHICAGO y*R*«E SAFETY SI*HON
FIRST FLOOR












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oicaco l»»A«ii«e SArxTY static*
SECOND FLOOR v^ ^



















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311 USCG Ll! Officer Bunk


USCG Officer Bunk __j
309

310 "ad;



320 Exercise Room

307 lj 307










CHICAGO MARlXE safety STATION
THIRD FLOOR


























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EXHIBIT D
Revised Program for the Marine Safety Station
USCG's Exlusive Space
room Use square feet
106 storage 150
212 conference room 338
213 closet 16
214 office 94
215 office 150
216 bunk room 143
217 bunk room 336
218 closet 66
307 closets 102
309 officer bunk room 266
310 private restroom 27
311 officer bunk room 231
312 private restroom 27
314 bunk room 226
315 private restroom 27
316 TV Room 198
319 Laundry 24
320 exercise room 209
002 tool storage shed 52
2682



























* not represented on floor plan
= total



















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250 N. Breakwater
2nd Amendment to Lease

SECTION 2: This Ordinance shall be effective from and after the date of its passage and approval.