Notice of Public Hearing
NOTICE IS HEREBY GIVEN THAT A REAL PROPERTY ACQUISITIONS AND DISPOSITIONS PUBLIC HEARING, in accordance with Section 824 of the New York City Charter, will be held on September 14, 2021 at 10:00 a.m. via Conference Call No. 1-646-992-2010, Access Code 179 917 6259.
IN THE MATTER OF a lease for the City of New York, as tenant on the lower level, first and second floors of the building located at 521-533 West 57th Street (Block 1086 & Lot 7501) in the Borough of Manhattan for the NYPD Strategic Response Group to use as an office and garage, or for such other use as the Commissioner of the Department of Citywide Administrative Services may determine.
The proposed use was approved by the City Planning Commission pursuant to NYC Charter Section 195 on September 1, 2021 (CPC Appl. No.210263PXM).
The proposed lease shall be for a period of twenty one (21) years from Substantial Completion of alterations and improvements, at an annual base rent of $4,988,814.00 (Office $2,483,864.50|Parking $2,504,949.50) from rent commencement through the fifth (5th) year following rent commencement, $5,363,338.00 (Office $2,633,224.50|Parking $2,730,113.50) for the following five (5) years, $5,737,862.00 (Office $2,782,584.50|Parking $2,955,277.50) for the following five (5) years, and thereafter $6,112,386.00 (Office $2,932,944.50|Parking $3,180,441.50) through lease expiration, payable in equal monthly installments at the end of each month. The first twelve (12) months of office and garage base rent shall be abated. The following twelve (12) months of total base rent shall be discounted by $170,510.80 per month for a total of $2,046,129.54.
The tenant has a one-time right to terminate the lease in in its entirety on the eighteenth 18th anniversary of the rent commencement date (the “Termination Date”) with notice to Landlord of no more than 24 months and no less than 18 months prior to the Termination Date. In the event Tenant exercises the termination option under the Lease, Tenant shall pay to Landlord a one- time fee equal to the unamortized balance of the Tenant’s broker’s commission with interest at a rate of six percent (6%) per annum. In addition, should the Tenant not surrender the premises upon expiration, the Tenant shall be obligated to pay one hundred percent (100%) of the last calendar month’s rent preceding the end of the term for the first (1st) month, and one hundred fifty percent (150%) of the last calendar month’s rent preceding the end of the term every month thereafter until the Tenant surrenders the premises.
The Tenant shall have the right to renew the lease for a period of ten (10) years at the greater of 100% of fair market value or the then-escalated rent.
The Landlord shall prepare final architectural plans and engineering plans and make alterations and improvements in accordance with preliminary architectural plans and specifications which are attached to the lease. The architectural plans and engineering plans are at the landlord’s cost. The alterations and improvements consist of Base Building Work, which the landlord shall provide at its sole cost and expense, and Tenant Work. The total cost of the Tenant Work shall not exceed $8,616,349, of which the Landlord shall contribute $2,406,540 and the balance up to $6,209,809 will be paid by the Tenant. The Tenant shall reimburse the Landlord for Tenant’s share of the costs in accordance with the terms of the lease.
Further information, including public inspection of the proposed lease, may be obtained, at One Centre Street, Room 2000 North, New York, NY. 10007. To schedule an inspection, please contact Jason Morris, at (212) 386-5083.
If you need further accommodations, please let us know at least five business days in advance of the Public Hearing via email at DisabilityAffairs@mocs.nyc.gov or via phone at 212-298-0734.