Title
Authorization to Amend Lease Agreement with the Chinese Senior Citizens Association located at 734 and 735 E. Elm Street to Extend the Term (Ordinance S-52496) - District 4
Description
Request to authorize the City Manager, or his designee, to amend Lease Agreement 125301 with the Chinese Senior Citizens Association, to extend the term for a one-year period for the purpose of conducting a Facility Condition Assessment and ARC Flash (electrical) study for negotiating a longer term lease on building located at 734 and 735 E. Elm Street. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Human Services Department (HSD) is lessee for two parcels, one improved (155-36-043) with a 7,839 square-foot fraternal building, and a parking lot (155-63-038E) located at 734 and 735 E. Elm Street for the purpose of operating the Phoenix Chinese Senior Citizens Center and Nutrition Program. HSD desires to extend the lease for one year to continue the operation and to conduct a Facility Condition Assessment and a ARC Flash (electrical) study of the leased improvements. The current lease expires December 31, 2025, and will be extended for a one-year period beginning January 1, 2026, through, December 31, 2026, to allow time for the City and the Chinese Senior Citizens Association to assess the condition of the buildings for the support of future long term lease negotiations. Base rent during the one-year extension is $6,707.62 per month, plus applicable taxes, utility costs, and alarm fees.
Contract Term
The lease term will be for a one-year period, beginning January 1, 2026, and ending December 31, 2026.
Financial Impact
Base rent during the one-year extension is $6,707.62 per month, plus applicable taxes, utility costs, and alarm fees. The aggregate amount is estimated to be $99,151, including base rent, applicable taxes, utility costs, and alarm fees.
Concurrence/Previous Council Action
Lease Agreement 125301, Ordinance S-35715 adopted December 10, 2008.
Lease Agreement 125301-001, Ordinance S-36976 adopted April 21, 2010.
Lease Agreement 125301-002, Ordinance S-39240 adopted October 3, 2012.
Lease Agreement 125301-003 to 006, Ordinance S-40380 adopted November 20, 2013.
Lease Agreement 125301-007 to 010, Ordinance S-44109 adopted November 29, 2017.
Lease Agreement 125301-011, Ordinance S-51511 adopted December 18, 2024.
Location
734 and 735 E. Elm Street
APNs: 155-36-043 and 155-36-038E
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services and Finance departments.