Title
Authorization to Lease City-owned Land at the Northeast Corner of 27th and Belmont Avenues to Homer Farms, Inc. for a Containerized Vertical Farm (Ordinance S-51559) - District 5
Description
Request to authorize the City Manager, or his designee, to lease City-owned land at the northeast corner of 27th and Belmont avenues to Homer Farms, Inc. for a containerized vertical farm. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Homer Farms Inc. will lease approximately 22,650 square feet of unimproved land for a containerized vertical farm pilot program for the planting, cultivation and harvesting of crops. The pilot program is coordinated by the Brownfields and Food Systems Programs within the Office of Environmental Programs on vacant land owned by Phoenix Fire Department, adjacent to the command training center located at 7717 N. 27th Avenue.
The term of the lease will be for one year with two one-year options to extend at the sole discretion of the City. Annual rent is $20,400 per year which is within the range of market rents as determined by the Finance Department's Real Estate Division. Twenty percent of the crops produced at the farm will be distributed to residents through social service organizations. Rent may be offset by the value of the donations, in compliance with Administrative Regulation 5.44. Homer Farms, Inc. is responsible for all costs related to operation and maintenance of the farm and will provide insurance and indemnification acceptable to the City’s Risk Management Division and the Law Department. The lease may be canceled pursuant to Arizona Revised Statutes 38-511, or either party may cancel upon 60-days prior written notice. The lease may contain other terms and conditions deemed necessary by the City.
Contract Term
The initial term of the lease is one year beginning January 1, 2025, with two, one-year options to extend at the sole discretion of the City.
Financial Impact
Annual revenue is $20,400 which may be offset by the value of crops distributed to residents through social service organizations approved by the City.
Location
Northeast corner of 27th and Belmont avenues, identified by Maricopa County Assessor parcel numbers 157-29-158, 157-29-159, and 157-29-160.
Council District: 5
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Fire and Finance departments.