Title
Authorization to Amend Lease 135425 with Phoenix Newspapers, Inc. to Extend Term (Ordinance S-48300)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Lease Agreement 135425 with Phoenix Newspapers, Inc., doing business as The Arizona Republic, to extend the lease term for a three-year period and to add two one-year options to extend. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Phoenix Newspapers, Inc. currently leases 71 square feet of interior office space on the 11th floor of Phoenix City Hall located at 200 W. Washington St. through Jan. 31, 2022. The lease agreement will be amended to extend the term for a three-year period and to add two one-year options to extend. Base rent during the first year of the three-year extension is $161.83 per month, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division. Base rent will increase by three percent each year thereafter. Each option period will be exercised upon mutual agreement of the City and Phoenix Newspapers. Phoenix Newspapers is a long-term tenant in good standing.
Contract Term
This amendment will extend the lease agreement from Jan. 31, 2022, for a three-year term, plus two additional one-year options to extend.
Financial Impact
Revenue during the first year of the extension period will be $1,941.96 per year, plus applicable taxes.
Concurrence/Previous Council Action
The City Council approved:
- Agreement 135425 (Ordinance S-39522) on Feb. 1, 2013; and
- Agreement 135425 - Amendment (Ordinance S-44234) on Jan. 24, 2018.
Location
200 W. Washington St., 11th Floor.
Council District: 7
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton, Deputy City Manager Karen Peters and the Finance and Public Works departments.