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Committee forwards 15-year lease extension for Southside Plaza with $576,000 in tenant improvements and right of first offer
Summary
The committee voted to forward ordinance 2026-098, authorizing a sixth amendment to the city's lease at 4100 Hull Street Road (Southside Plaza) that includes a 15-year term, a reduced rent of $399,075 per year, a $576,000 tenant-improvement allowance and a right of first offer to purchase.
The Education and Human Services Committee voted to forward ordinance 2026-098 to full council, a lease amendment that will allow the city to continue using 52,411 square feet at 4100 Hull Street Road for the Department of Neighborhood and Community Services and other city functions.
Amy Popovich, deputy chief administrative officer for human services, summarized the amendment as a 15-year lease extension with a five-year option to extend and a right of first offer to purchase the building should it come on the market. Popovich said the city negotiated a reduced annual rent of $399,075, a reduction of $164,000 from previous terms, and that the amendment provides the city with use of the second floor at no additional charge as part of the deal.
"City has maintained a lease since 1997 for the property located at 4100 Hull Street," Popovich said, and described the package as "a pretty good" negotiating result.
Chris Nazamus, with the city's Real Estate Strategies Department, described tenant-improvement and landlord commitments: the landlord is providing a three-draw tenant improvement allowance of roughly $576,000, full replacement of the HVAC units, elevator repair, roof work and window/door sealing. Nazamus said the landlord recently repainted the facility and the city plans to sublease the second floor to complementary agencies when appropriate.
Councilmember Kim moved the motion to forward the ordinance to council for approval and Councilmember Bridal seconded; the clerk called the roll and the committee approved the motion.
Committee members asked whether the city planned to set aside funds to eventually purchase the building. Nazamus said the owner historically has resisted selling but the negotiated right of first offer gives the city a chance to purchase at market value or appraised value in the future; no purchase price has been determined.
The ordinance will now be considered by the full council.
