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Meeting Date:
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3/21/2024 - 5:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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7. Action on a Request to Approve the Fourth Amendment to Modify the Lease Agreement with Carmen High School of Science and Technology at the Northwest Secondary School Building Located at 5496 North 72nd Street
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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1. Proposed Fourth Amendment to the Lease Agreement - Carmen at Northwest
2. Third Amendment to the Lease Agreement - Carmen at Northwest
3. Second Amendment to the Lease Agreement - Carmen at Northwest
4. First Amendment to the Lease Agreement - Carmen at Northwest
5. Original Lease Agreement - Carmen at Northwest
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File Attachment:
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Background:
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Carmen High School of Science and Technology (Carmen) is a college preparatory high school with a liberal arts curriculum that emphasizes science and engineering. Milwaukee Public Schools and Carmen have cultivated a long-term working relationship. In November 2012, the Milwaukee Board of School Directors approved a lease agreement between Milwaukee Public Schools and Carmen to operate a non-instrumentality charter school within the Northwest Secondary School Building. The initial term of the lease agreement commenced on July 15, 2013, and ended June 30, 2018, with an option to extend two additional five-year terms. The lease term was amended at the January 25, 2018, Board meeting to allow for the extension to be exercised for one year so it would align with the charter contract term. In January 2019, the Board approved the second amendment to the lease agreement for a two-year term. In July 2021, the Board approved the third amendment to the lease agreement for a five-year term. A request has been made to release the use of four classrooms on the second floor and utilize four classrooms on the first floor which adds 442 square feet to 133,379 leased square footage for a new total of 133,821 square feet. After the school year started and the Board approved the
fourth amendment in September, Carmen requested to revert back to the original terms from the previous amendment and utilize the four classrooms on the second floor and the 133,379 leased square footage. The remaining lease revenue has been recalculated for the remainder years of the lease term.
The Administration is requesting approval of the proposed fourth amendment to the lease agreement with Carmen that will modify the lease term from September 1, 2023, through June 30, 2026, which aligns with the charter term contract.
The lease rent revenue shall be as follows:
July 1, 2023 – June 30, 2024 = $699,211
July 1, 2024 – June 30, 2025 = $713,205
July 1, 2025 – June 30, 2026 = $727,469
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Fiscal Impact Statement:
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There are no expenditures associated with this item. Total lease revenue for lease term is $2,139,885.
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Implementation and Assessment Plan
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Upon Board approval, the attached Fourth Amendment to the Lease Agreement with Carmen High School of Science and Technology will be executed.
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Recommendation:
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Your Committee recommends that the Board approve the Fourth Amendment to the Lease Agreement with Carmen High School of Science and Technology.
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Approvals:
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Recommended By:
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Signed By:
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Jill Kawala - Interim Director/Board Clerk
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