Title
Authorization to Lease City-owned Property Within the 19th Avenue and Camelback Road Park-and-Ride to Crown Castle (Ordinance S-50946)
Description
Request to authorize the City Manager, or his designee, to lease City-owned property within the 19th Avenue and Camelback Road Park-and-Ride to Crown Castle for a two-year term plus three additional, one-year options to extend. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Crown Castle, successor-in-interest to Sprint Spectrum, LP, currently leases approximately 665 square feet of land within the 19th Avenue and Camelback Road Park-and-Ride through July 31, 2024. The City will enter into a new lease with Crown Castle (Lessee) to replace Lease Agreement 120554, entered into on Jan. 22, 2007. The existing lease was assumed as part of a settlement in which the cell tower equipment and related facilities were relocated and incorporated into the park-and-ride improvements.
The proposed term of the lease will be two years beginning Aug. 1, 2024, through July 31, 2026, with three additional, one-year options to extend upon mutual agreement of both parties. Base rent during the first year of the lease will be $3,000 per month, plus applicable taxes, and will be adjusted three percent annually, which is within the range of market rents as determined by the Real Estate Division. Lessee is responsible for all costs associated with operation and maintenance of the leased site, including but not limited to the fencing and enclosure, permits, utilities, and environmental compliance. Lessee will have non-exclusive rights for reasonable access to the leased site, not to interfere with the use and operation of the park-and-ride. Lessee shall provide insurance and indemnification acceptable to the City’s Risk Management Division and the Law Department.
The lease may be canceled pursuant to Arizona Revised Statute 38-511, or either party may cancel the lease upon 90-days prior written notice. The lease may contain other terms and conditions deemed necessary by the City.
Contract Term
The lease term will be two years with three additional, one-year options to extend.
Financial Impact
Revenue during the first year of the lease is $36,000 per year, plus applicable taxes, and will increase three percent annually.
Concurrence/Previous Council Action
City Council approved Lease Agreement 120554 (Ordinance S-33638) on Jan. 10, 2007.
Location
Southeast corner of 19th Avenue and Camelback Road, within Maricopa County Assessor parcel number 155-53-072.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.