TO: Mayor and City Council
FROM: Dustin Anderson, Director of Community Development
SUBJECT:
title
Resolution Authorizing a Modification of a Lease Agreement of Union Station at 50 W. Jefferson Street with JBM Golf Properties, LLC
end
BACKGROUND:
Since February 1, 2017, JBM Golf Properties, LLC., a.k.a Mistwood Golf Club (Mistwood), has leased and operated a premier wedding, banquet, and event venue at The Grand Ballroom Union Station at 50 W. Jefferson Street, which includes approximately 7,600 square feet of the second floor of Union Station and shares 2,750 square feet of common area space on the first floor.
The initial term of the lease was six years with two two-year renewal options. The final two-year extension expires on January 31, 2027. Mistwood currently pays 15% of its monthly gross receipts from the sale of food and beverages, or $5,000/month, whichever is greater. Mistwood has been steadily building its business and has been successful at booking events far in advance. In the last six years, this tenant has generated $327,030.80 in rent for the City of Joliet, plus food and beverage taxes, and starting this year, the tenant will also cover property taxes. For these reasons, Mistwood has requested a modification of the current lease payment structure and a long-term lease extension beyond 2027.
Economic Development staff reviewed the previous lease agreement, the rent collected, researched a similar agreement in the area, and negotiated a modified version of the lease terms with Mistwood, which includes:
* A reduction to 14.525% of the sale of food and beverages backdated to May 2025 through January 2027; and
* The $5,000 minimum fee waived for the month of March 2026, when the building is closed for elevator maintenance.
Additionally, Economic Development staff proposes:
* Extension of the current lease by five years with one five-year renewal option.
o The new lease expiration date would be January 31, 2032 instead of January 31, 2027....
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