Title
Authorization to Amend Farming Lease with Accomazzo Company to Extend the Term (Ordinance S-46896)
Description
Request to authorize the City Manager, or his designee, to amend Lease 141179 between the City of Phoenix and Accomazzo Company to extend the term for two years with three, one-year options. Rent during the first year of the extended term will be $27,846 per year, plus applicable taxes. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Accomazzo Company currently farms approximately 142.8 acres of City-owned land located at 9502 W. Lower Buckeye Road and is a long-term tenant in good standing. The leased land is a portion of a larger property purchased in 2002 with impact fees for a police precinct, which has been constructed, and a future district park, to be developed upon availability of funding. It is anticipated that funding will not be available to develop the park during the term of the lease. In the event that funding for park development becomes available or the proposed use of the property changes prior to the end of the lease, the City may cancel the lease at any time by providing a 60-day written notification.
Rent during the first year of the extended term will be $195.00 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.
Tenant will provide insurance and indemnification acceptable to the City's Risk Management Division and the Law Department. The lease is subject to cancellation pursuant to Arizona Revised Statute 38-511 or upon 60-days prior written notice by either party.
Contract Term
Two years with three, one-year options to extend.
Financial Impact
Revenue during the first year of the extended term will be $27,846, plus applicable taxes. The property was acquired using impact fees.
Concurrence/Previous Council Action
Lease 141179 was authorized by Ordinance S-41825, adopted by City Council on June 17, 2015.
Location
9502 W. Lower Buckeye Road, identified by Maricopa County Assessor parcel numbers 101-14-005G and 101-14-003D.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation and Finance departments.