Title
Authorization to Amend Lease with Phoenix Newspapers, Inc. to Extend Term and Modify Parking Provision (Ordinance S-44234)
Description
Request to authorize the City Manager, or his designee, to amend Contract 135425 with Phoenix Newspapers, Inc., doing business as The Arizona Republic, to extend the term for a one-year period with four additional one-year options, and to modify the parking provision. Further request authorization for the City Treasurer to accept all funds related to this item. Rent during the initial one-year extension will be $1,846 per year, plus applicable taxes.
Report
Summary
Phoenix Newspapers, Inc. currently leases approximately 71 square feet of office space on the 11th floor of Phoenix City Hall located at 200 W. Washington St., in addition to two non-reserved parking spaces at 305 W. Washington St. The current contract term expires Jan. 31, 2018. The contract will be amended to extend the term for a one-year period and add four additional one-year options to extend, to be exercised upon approval by the City. Rent during the initial one-year extension is $26 per square foot per year, plus applicable taxes, which is within the range of market rents as determined by the Finance Department's Real Estate Division. Rent will be adjusted based on the consumer price index (CPI) at the beginning of each option period. The contract will be amended to require the tenant to independently procure two parking spaces through the City's contracted parking services management for the 305 and Adams Street garages.
Financial Impact
Revenue during the initial extension period will be $1,846 per year, plus applicable taxes.
Concurrence/Previous Council Action
This contract was approved by Ordinance S-39522, adopted Jan. 16, 2013.
Location
200 W. Washington St., 11th Floor
Council District: 7
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher, Deputy City Manager Karen Peters, and the Public Works and Finance departments.