Title
Ground Lease with 4LWM LLC at 2949 E. Washington St. (Ordinance S-48242)
Description
Request to authorize the City Manager, or his designee, to enter into a ground lease with 4LWM LLC for up to approximately 16,000 square feet of a paved parking lot at 2949 E. Washington St. for two years with three one-year options to extend the term that may be exercised at the sole discretion of the Director of Aviation Services.
Report
Summary
The City owns the property located at 2949 E. Washington St. (APN 121-80-002B) which includes a vacant building and a fenced and paved parking lot south of the building. 4LWM LLC is currently using approximately 8,000 square feet of the parking lot for storage of the company’s container studio complex and related items under Temporary Parking Lot License Agreement 155065. 4LWM LLC now desires to lease up to approximately 16,000 square feet of the parking lot for the same purpose under a Lease.
Contract Term
The term of the lease will be two years with three one-year options to extend the term that may be exercised at the sole discretion of the Director of Aviation Services.
Financial Impact
Rent for the first year will be approximately $16,800 ($1.05 per square foot) and will be adjusted annually based on the Phoenix-Mesa-Scottsdale Consumer Price Index or three percent, whichever is greater. Total anticipated revenue over the term of the lease will be approximately $84,000, if all options are exercised.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board recommended this item for approval on Nov. 18, 2021, by a vote of 7-0.
Location
2949 E. Washington St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.