Title
Palos Community Hospital Physical Therapy/Occupational Therapy License Agreement
History
On March 23, 2016, the Village of Orland Park (VOP) and Palos Community Hospital (PCH) entered into a Memorandum of Understanding (MOU) regarding the preservation of the existing fitness center, including a possible land exchange between the parties. On July 18, 2016, the Village Board is scheduled to approve the Land Exchange Agreement which reflects the terms of the land exchange negotiated between both parties.
As per the terms of the Land Exchange Agreement, VOP is granting PCH a five (5) year license to a designated area within the fitness center to be utilized for physical therapy/occupational therapy services. The terms of the license allow PCH to terminate the license at any time after the 2nd year of the license, subject to notice as per the terms of the Physical Therapy Facility License Agreement. The current space occupied by PCH for physical/occupational therapy is approximately 6,000 square feet on the main floor of the Center. Both parties agree going forward that the amount of space needed for this use is approximately 4,500 square feet. PCH agrees to bear any costs associated with relocation/resizing of the physical therapy/occupational therapy space. VOP agrees not to license space to another party for operation of a physical therapy/occupational therapy facility use within the Center.
Beginning on January 2, 2017, the PCH shall pay a Monthly License Fee (based on $10.50 per square foot for an annual license fee based on the 4,500 square feet) of Three Thousand Nine Hundred Thirty-seven and 50/100 ($3,937.50). The Monthly License Fee shall be proportionately increased or reduced based on the square footage of the relocated Licensed Space.
Financial Impact
Revenue generated on an annual basis for at least the first two years of the lease term will be, at a minimum, approximately $47,250.
Recommended Action/Motion
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