University Medical Center of Southern Nevada
Board of Hospital Trustees
AGENDA ITEM
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Petitioner: |
Mason Van Houweling, Chief Executive Officer |
Recommendation:
title
Approve and authorize the Chief Executive Officer to sign the Lease Agreement with METEJEMEI, LLC for rentable space for the UMC Quick Care and Primary Care at 5860 Losee Road; or take other action as appropriate. (For possible action)
body
FISCAL IMPACT:
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Fund #: |
5420.000 |
Fund Name: |
UMC Operating Fund |
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Fund Center: |
3000739000 (QC) & 3000739500 (PC) |
Funded PGM/Grant: |
N/A |
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Amount: |
$9,233,453 |
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Description: |
Aliante QC/PC Lease |
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Additional Comments: |
Without cause at month 60 upon payment of early termination fee; Budget Act and Fiscal Fund Out clause |
BACKGROUND:
This request is to approve a new Lease Agreement with METEJEMEI, LLC (Landlord) to lease approximately 9,600 sq. ft. of rentable space for UMC’s Quick Care and Primary Care located at 5860 Losee Road, North Las Vegas, Nevada 89081.
Landlord will provide construction improvements as depicted in Exhibit B of the Agreement and will comply with all governmental statutes, ordinances, rules and regulations applicable to the construction work, including, without limitation, prevailing wage requirements as set forth in NRS Chapter 338.
UMC will receive free rent for the first three (3) months of the Lease Term, a savings of approximately $50,400. The monthly rent resumes at $16,800 per month in month four (4), plus adjustments (taxes, insurances and common area maintenance charges) for the first year. UMC’s adjustments composed of taxes, insurance, CAM and maintenance charges shall not exceed $0.54 per square foot, per month, for the first Lease year. For each anniversary of the Lease Term, such amount shall not increase by more than 3% from the preceding year. The Lease Term is for ten (10) years effective on the Lease Commencement Date with the option to renew for two (2), five (5)-year periods. UMC has a one-time option to terminate the Lease Agreement without cause at month 60 by paying an early termination fee of $100,000.
The Lease Agreement was reviewed by the Governing Board at their May 26, 2021 meeting and recommended for approval by the Board of Hospital Trustees. The Lease Agreement has been approved as to form by UMC’s Office of General Counsel.