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February 27, 2025 City Council Regular Meeting | |
Title 37. Authorize the City Manager to Execute a Fourth Amendment to extend the Lease Agreement for 602 East Lathrop Avenue (SPD) | |
Strategic Priority Public Safety | |
Description The City leases a two-story building containing approximately 25,000 square feet located at 602 East Lathrop Avenue (the former Great Dane Building). There are three Savannah Police Department units using the facility: 1) the Northwest Precinct, 2) the Records unit, and 3) the Traffic Unit. The lease commenced in 2018 and has been previously amended three times. The current lease expiration date is December 31, 2025 (end of this year). The City is working to develop a new SPD Northwest precinct on a nearby City-owned site and is planning to renovate another City-owned facility for future use by the Records and Traffic Units. However, these capital projects will not be completed by the current lease expiration date (2025). Staff contacted the Landlord and requested a two-year extension. Landlord did not agree to extend for two years, but has agreed to amend and extend for one additional year (through the end of 2026). After that date, Landlord reports no further extensions will be available, as the property owner is making other plans for the property. The amended and extended 2026 base rent will increase by 2.5%, resulting in an annual rental cost of $420,787.62. | |
Recommendation Approval | |
Contact David Keating, Senior Real Estate Administration | |
Financial Impact $420,787.62 for Calendar Year 2026 from the General Fund | |
Review Comments | |
Attachments Exhibit 1 - Map - Great Dane 602 E Lathrop.pdf Exhibit 2 -Original Lease - Great Dane 602 E. Lathrop.pdf Exhibit 3 - Fourth Amendment to Lease - Grant Dane 602 E. Lathrop.pdf |
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