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Title:
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Authorization to Amend City Contract 111 - Lease of City-Owned Property at 364 N. 7th Ave. with the American Legion Post No. 1 (Ordinance S-44976)
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Title
Authorization to Amend City Contract 111 - Lease of City-Owned Property at 364 N. 7th Ave. with the American Legion Post No. 1 (Ordinance S-44976)
Description
Request to authorize the City Manager, or his designee, to amend City Contract 111, and any other agreements as necessary (Amendment), with the American Legion Post No. 1, a nonprofit service organization for military veterans (Legion), to extend the lease term and modify certain business terms. Further request authorization for the City Treasurer to accept funds related to this item. This item will not have an expense impact on the General Fund, and will create a one-time lease payment of $100 which will be deposited into the General Fund.
Report
Summary
On Feb. 20, 1920, the City and Legion entered into a 99-year lease of the 1.7 acre City-owned property at 364 N. 7th Ave. for the purpose of creating a location and facility for the Frank Luke Jr. Post No. 1 of the American Legion. The lease agreement will terminate on Feb. 20, 2019, pursuant to the terms of the contract. The Legion has notified the City that they would like to celebrate the 100th anniversary of the Legion, and Post No. 1, with a celebration in the summer of 2020 which necessitates an amendment to the lease.
Subject to City Council authorization, the following business terms have been negotiated with the Legion and would be implemented through the Amendment.
Term shall be extended until Aug. 1, 2020.
Legion shall provide the City with the following consideration for the lease extension: (a) pay a total rent of $100 for the extension of the term; (b) transfer ownership of their adjacent parcel, Assessor's Parcel Number 111-30-085C, to the City upon the termination of the Amendment; and (c) provide the equivalent of not less than $6,400 per year of in-kind public benefit services to be coordinated with, and monitored by, the Community and Economic Development Department.
3. Legion shall be responsible for all public and private utilities and property expenses.
4. Legion shall not renew the lease term of any third party billboard leases on the site.
5. Legion shall provide insurance and indemnification acceptable to the the City.
6. The Amendment may include other terms and conditions deemed necessary or appropriate by the City Manager.
Contract Term
The current contract is for 99 years and expires on Feb. 20, 2019. This Amendment will extend the lease term until Aug. 1, 2020.
Financial Impact
This item will not have an expense impact on the General Fund, and will create a one-time lease payment of $100 which will be deposited into the General Fund.
Concurrence/Previous Council Action
Resolution 524, authorizing this contract, was passed by the Commission of the City of Phoenix on March 3, 1920.
Location
364 N. 7th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.