Finance — 03/16/16 Page 3
NEW BUSINESS — RESOLUTIONS
R-16-016
Endorsers: Mayor Jim Donchess
Alderman Ken Siegel
Alderman-at-Large Brian S. McCarthy
Alderwoman Mary Ann Melizzi-Golja
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO A FIRST AMENDMENT TO
LEASE AGREEMENT WITH MAKEIT LABS FOR A PORTION OF 25 CROWN STREET
MOTION BY ALDERMAN SIEGEL TO RECOMMEND FINAL PASSAGE
ON THE QUESTION
Alderman Cookson
As | read the resolution, it’s a five-year term with the option for five additional years. It’s only at the second set
of five that you see a 3 percent increase annually on the expense that Makelt Labs would provide. What’s
happening in the first five years?
Mayor Donchess
As | recall the lease, they work up gradually to a lease payment, gradually over a period of five years, to a
lease payment of about $30,000 a year to give them time to become financially viable enough to pay the rent
that’s called for in the lease. When they reach the $30,000 threshold, | believe it then goes up at a cost of
living.
Alderman Cookson
This issue | have is we don’t actually have the lease in front of us. We have the sections of the lease that are
either amended or are being added into this particular lease. It makes reference within the notes, and | can’t
find it right now, as | recall it makes reference to something similar as to what’s below. Again, we don’t’ have
the lease in front of us. I’m not sure what I’m agreeing to for the first five years. | think the second set of five
years is perfectly spelled out. But! have no idea what I’m agreeing to in the first five years.
Mayor Donchess
There’s no problem in circulating copies of the underlying document so you can see that. There’s not a big
rush that this has to be approved tonight. We could circulate the underlying documents and then take it up
again next time if you would like to table it.
Alderman Cookson
| wouldn’t move to table. I’m making an observation and I'd like the conversation to continue.
Alderman Siegel
The original lease came before Finance last term. | don’t have the exact financials in my head, but one of the
specific things | do remember is this building not only started off in bad shape, but by the time they actually
took possession of the building, it had gotten way worse to the point | believe all of the copper piping had been
stripped out at that point. As | recall as an alderman, the fees that they were paying, if it were me, I’d probably
would have renegotiated the lease given the condition of the building once | took possession. | thought they
were very good about it. They went in, they completely rehabbed the building. | don’t know if you’ve been in
