ORDINANCE No. 177091

*Terminate Lease Agreement with adidas Village Corporation for park land at Madrona Park. (Ordinance)

The City of Portland ordains:

Section 1. The Council finds:

 1. For many years, a 13,800 SF parcel of land at the southern tip of Madrona Park was leased by Kaiser Foundation Hospitals and used as a parking area to support the medical facility. In 1998, when Kaiser sold its property to Jim Winkler, the lease was transferred to Mr. Winkler. Subsequently, on September 27, 2000 (Ordinance No. 174930), Council amended the lease agreement and changed the name of the lessee to adidas Village Corporation and the permissible use to park and recreation.

2. As part of its improvements to the area, adidas constructed improvements in Madrona Park and the former parking lot site was altered to assimilate it into the park. Consequently, the leased land is only suitable for park and recreation purposes, and the tenant wishes to be relieved of the responsibility for the site before the lease expires. Adidas has asked to terminate the lease as of December 31, 2002.

3. The current lease is scheduled to expire on October 31, 2003. Adidas has agreed to pay the remaining rent, but at its request, a 3% discount was negotiated for payment of the rent in a lump sum upon termination of the lease. The current rent is $739.71 per month.

 4. The Director of Portland Parks and Recreation recommends that the City terminate its lease with adidas Village Corporation, and that a 3% discount be given for lump sum receipt of the remaining rent due.

NOW THEREFORE, the Council directs:

 a. The Commissioner of Public Utilities to execute a letter, effectively terminating the City's lease with adidas Sales, Inc. for property at Madrona Park.

Section 2. The Council declares that an emergency exists because a delay in terminating the lease may cause the tenant to continue to be responsible for land that it cannot use; therefore, this Ordinance shall be in force and effect from and after its passage by the Council.

Passed by the Council: DEC 04 2002

         GARY BLACKMER

Auditor of the City of Portland

Commissioner Jim Francesconi

Susan Hathaway-Marxer            By /S/ Susan Parsons

November 25, 2002

Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1425-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177091