Title
Authorization to Amend Lease with Olson Precast of Arizona, Inc., to Extend the Term (Ordinance S-43978)
Description
Request to authorize the City Manager, or his designee, to amend Contract 120324 with Olson Precast of Arizona Inc., to extend the lease term for a five-year period with one additional five-year option period. Revenue during the initial five-year contract term will be $7,440. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Olson Precast of Arizona Inc., leases approximately 3,720 square feet of vacant City-owned land, adjacent to Olson's eastern property line at 3045 S. 35th Ave. The leased site is an approximate nine foot strip of land along the 27th Avenue landfill perimeter. The current lease term expires Dec. 28, 2017, with no remaining options. Annual base rent during the five-year extension period will be $1,488 per year plus applicable taxes, beginning Dec. 29, 2017. Annual base rent during the five-year option period will be at the then prevailing market rent plus applicable taxes.
Financial Impact
Revenue during the initial five-year contract term will be $7,440, or $1,488 annually.
Concurrence/Previous Council Action
Contract 120324 was approved by Ordinance S-32019, adopted June 1, 2005.
Location
The leased site is approximately 640 feet west of S. 35th Avenue and approximately 960 feet south of W. Lower Buckeye Road, identified by assessor parcel numbers 105-43-004 (portion) and 105-49-010C (portion), located at 3045 S. 35th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Finance departments.