Title
Authorization to Amend Lease with Felipe Perez Farms, Inc. to Extend Term of Farming Lease (Ordinance S-46232)
Description
Request to authorize the City Manager, or his designee, to amend Lease 128202 between the City of Phoenix and Felipe Perez Farms, Inc. to extend the term for one year with four additional one-year options and to approve Felipe Perez Farms, Inc. to assign the lease to F.S.T.Farms, Inc., which has common ownership. Rent during the first year of the extended term will be $7,166.25 per year, plus applicable taxes. Further request authorization for the City Treasurer to accept all funds in accordance with the terms of the Lease.
Report
Summary
The 39-acre, City-owned parcel is surrounded by private farm land occupied by Felipe Perez Farms, Inc., a long-term tenant in good standing. The property is listed on the excess land list with the farm lease considered an interim use to generate revenue and reduce maintenance. The City may cancel the lease upon 90-day written notification in the event that the property is to be listed for sale or developed. Rent during the first year of the extended term will remain at the current rate of $183.75 per acre per year, which is within the range of market rents as determined by the Finance Department's Real Estate Division. Rent may be adjusted to market rent at the beginning of each option period, if needed.
Contract Term
One year with four additional one-year options to extend.
Financial Impact
Revenue during the first year of the extended term will be $7,166.25, plus applicable taxes. The property was acquired using Impact Fees.
Concurrence/Previous Council Action
City Council adopted Ordinance S-36851 on Feb. 3, 2010; Ordinance S-40311 on Oct. 30, 2013; and Ordinance S-44241 on Jan. 24, 2018, authorizing this contract and amendments.
Location
Along the east side of South 59th Avenue, approximately 1,300 feet south of Dobbins Road, identified by Maricopa County Assessor parcel number 300-02-060.
Council District: 8
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Parks and Recreation and Finance departments.