September 29, 2022
INTER-OFFICE MEMORANDUM
TO: Isaac Benton, President, City Council
FROM: Timothy M. Keller, Mayor
SUBJECT: title
Lease Agreement between City of Albuquerque and Albuquerque AMG Specialty Hospital, LLC
body
The City owns property known as the Gibson Health Hub, located at 5400 Gibson SE. The City assumed a lease agreement with tenant Albuquerque - AMG Specialty Hospital, LLC, which is a long-term acute care facility. AMG currently leases 19,761 square feet of hospital space and provides 32 beds for their operation. AMG wishes to expand into an adjacent wing and add an additional 15 beds, totaling 28,166 sq. feet and 47 beds.
The proposed Lease Agreement is for ten (10) years with two (2) five (5) year options to extend, if lessee is not in default and if properly exercised.
The initial year will generate $434,742.00 (19,761 sq. ft. x $22.00) with a 2% annual escalation thereafter. Once tenant improvements are complete and AMG receives approval from New Mexico Department of Health and the New Mexico Facility Licensing & Certification, rent will increase to reflect the gross 28,166 sq. ft. x $22.00, or applicable price her square foot at the time of approval.
Lease also includes a load factor with a 2% annual escalation. Initial year will generate $7,436.00.
This Lease Agreement is forwarded to City Council for approval.
TITLE/SUBJECT OF LEGISLATION:
Lease Agreement between City of Albuquerque and Albuquerque - AMG Specialty Hospital, LLC
Approved: Approved as to Legal Form:
_____________ _________ ______________________________
Lawrence Rael Date Lauren Keefe Date
Chief Administrative Officer City Attorney
Recommended:
______________ _________
Carol M. Pierce Date
Director
Family and Community Services