Title
Authorization to Amend Lease to Extend Term for the Park-and-Ride at Happy Valley Road and Interstate 17 (Ordinance S-45689)
Description
Request to authorize the City Manager, or his designee, to amend Contract 125944 with the State of Arizona by and through the Arizona State Land Department (ASLD) to extend the lease term for a 10-year period. Further request authorization for the City Controller to disburse funds related to this item. Base rent during the original 10-year term is $20,000 per year and will increase to $22,000 per year, plus applicable taxes, during the proposed extension.
Report
Summary
The Public Transit Department currently leases approximately 7.7 acres for operation of the Happy Valley Road and Interstate 17 (I-17) Park-and-Ride, and desires to continue operating the Park-and-Ride at this location. Base rent during the original 10-year term is $20,000 per year and will increase to $22,000 per year, plus applicable taxes, during the proposed extension.
Contract Term
The contract will be amended to extend the term for one 10-year period.
Financial Impact
Base rent will be $22,000 per year, plus applicable taxes. In addition, payment of $1,000 will be made to ASLD for the usual and customary processing fees for the lease renewal. The City is responsible for paying for all utilities, repairs, taxes, assessments, insurance, and maintenance to the premises. Funds are available in the Public Transit Department operating budget T2050 Fund.
Concurrence/Previous Council Action
The current contract was authorized by Ordinance S-36436, adopted July 1, 2009.
This item was recommended for approval at the Aviation and Transportation Subcommittee meeting on May 28, 2019, by a vote of 3-0.
Location
24725 N. 29th Ave.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.