Title
Amend City Contract 154383 with Sacred Heart Roman Catholic Parish Phoenix (Ordinance S-50020)
Description
Request to authorize the City Manager, or his designee, to amend Unsubordinated Ground Lease 154383 (Lease) with Sacred Heart Roman Catholic Parish Phoenix, an Arizona non-profit corporation, or its City-approved designee (Tenant), to extend the term of the Lease.
Report
Summary
At the direction of the Phoenix City Council, staff from the Aviation and Community and Economic Development Departments negotiated with Tenant and Chicanos Por La Causa for the use of approximately 35 acres of land in Sky Harbor Center. The site, which includes the historic Sacred Heart Church (Building), was purchased by the Aviation Department in the 1980s as part of the West Approach Land Acquisition program.
On June 20, 2018, the Phoenix City Council approved business terms with the Tenant to lease the 5,200 square foot Building and approximately three acres of land for the establishment and use of a consecrated Catholic church and other potential development consistent with the uses in the Lease. The Lease was executed on May 11, 2021 (Effective Date) and the Tenant began its plans to rehabilitate the Building. Due to the COVID pandemic, inflation, and other economic impacts, the Tenant is seeking an additional two-years to renovate and activate the Building as required by Article 10.1(A) of the Lease. The current requirement is 36 months from the Effective Date and this amendment would change that requirement to 60 months from the Effective Date.
No other terms or conditions of the Lease will be amended.
Contract Term
The Lease Term is 50 years. This amendment would not change the term.
Financial Impact
This action will have no impact on the General Fund.
Concurrence/Previous Council Action
City Council authorized this Lease on the June 20, 2018 (Ordinance S-44586).
Location
The site is generally located on the northeast corner of 16th Street and Buckeye Road and the northwest corner of Sky Harbor Circle North and Buckeye Road in Sky Harbor Center at Phoenix Sky Harbor International Airport.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, Interim Deputy City Manager John Chan, and the Aviation and Community and Economic Development Departments.