Title
Substitute Ground Lease with American Greyhound Racing
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval to enter into a substitute ground lease with American Greyhound Racing, Inc. (Greyhound) at Phoenix Sky Harbor International Airport.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Greyhound leases the greyhound racetrack located at 3801 E. Washington St. Greyhound currently uses the location for a community swap meet market. Greyhound has requested a five-year lease extension for their current lease. The current lease has undergone numerous amendments resulting in changes to the original lease premises footprint. This substitute ground lease agreement will replace the current ground lease agreement and clarify the lease premises.
Contract Term
The term will be five years and will contain an option to extend the term on a month-to-month basis for up to two years. The option may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent for the first year of the lease will be approximately $954,240 ($0.78 per square foot), plus applicable taxes. Rent will be adjusted annually thereafter according to the Phoenix-Mesa-Scottsdale Consumer Price Index. Total anticipated revenue over the five-year term will be approximately $4,771,200.
Concurrence/Previous Council Action
This item will be recommended for approval by the Phoenix Aviation Advisory Board on Nov. 19, 2020, by a vote of 9-0.
Location
3801 E. Washington St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.