Title
Authorization to Lease City-Owned Property Located at 1330 N. 29th Drive to Friends of the Library, Inc. (Ordinance S-49847)
Description
Request to authorize the City Manager, or his designee, to enter into a full-service lease with Friends of the Phoenix Public Library, Inc., for warehouse space located at 1330 N. 29th Drive. Further request to authorize the City Treasurer to accept all necessary funds in accordance with the terms of the lease.
Report
Summary
Friends of the Phoenix Public Library, Inc., (Tenant) will lease approximately 15,012 square feet of warehouse space for a three-year term, beginning on or around July 15, 2023, with two additional one-year options to extend. Each option period will be exercised upon mutual agreement of the City and Tenant.
Base rent during the initial term of the full-service lease will be $10 per square-foot per year, plus applicable taxes, or $150,120 per year, which is within the range of market rents as determined by the Real Estate Division. Base rent will increase three percent at the beginning of each one-year option period. As consideration for the lease, the Tenant will receive a rent credit equal to the yearly base rent of $150,120 for non-monetary contributions and services provided to the Phoenix Public Library. The Tenant will be assessed market rent plus applicable taxes for failure to provide documentation of non-monetary contributions and services, quantified in terms of dollars, 30 days prior to the anniversary of the commencement date of the lease. Tenant will forfeit any credit related to non-monetary contributions and services provided for any early termination of the lease.
The lease will include insurance and indemnification provisions acceptable to the City's Risk Management Division and the Law Department. The lease may be canceled pursuant to Arizona Revised Statutes 38-511 and may contain other terms and conditions deemed necessary by the City.
Contract Term
The initial term of the lease is a three-year term, beginning on or about July 15, 2023, with two additional one-year options to extend.
Financial Impact
There is no net revenue anticipated during the term of the lease.
Location
1330 N. 29th Drive
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Library and Finance departments.