Bill Type and Number: Ordinance 2007-524

Sponsor: Council President at the request of the Jacksonville Economic Development Commission

Date of Introduction: May 8, 2007

Committee(s) of Reference: F, ECID

Date of Analysis: May 11, 2007

Type of Action: Approval of lease amendment

Bill Summary: The bill approves a 7^th amendment to the lease between the City and Northrop Grumman for facilities at Cecil Commerce Center to remove two facilities from the lease agreement and to provide for one year of rent forgiveness on those facilities in exchange for Northrop-Grumman voluntarily releasing the facilities back to the City for economic development reuse 12 years before the expiration of its current lease.

Background Information: The two facilities that Northrop Grumman is agreeing to vacate are a 30,000 square foot helipad/outdoor storage area and a 42,000 square foot storage bunker. Northrop Grumman’s cost to vacate the facilities and remove its equipment is approximately $50,000, and the City’s rent forgiveness for one year is valued at $41,200. Northrop Grumman will have 1 year from the effective date of the agreement to remove its operations and equipment and return the facilities to the City’s control.

Policy Impact Area: Cecil Commerce Center redevelopment

Fiscal Impact: The bill provides for one year of rent forgiveness valued at $41,200.

Analyst: Clements