Title
Authorization to Lease Real Property Located at 20 West Jackson Street from Sunrise Equities, LLC. (Ordinance S-51722) - District 7
Description
Request to authorize the City Manager, or his designee, to enter into a lease with Sunrise Equities, LLC. for use of improved property located at 20 W. Jackson Street to provide a heat respite site for the Office of Homeless Solutions. Further request authorization for the City Controller to disburse all funds related to this item.
Additionally, request the City Council to grant an exception pursuant to Phoenix City Code § 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnifications and assumption of liability provisions that otherwise would be prohibited by Phoenix City Code § 42-18, as tenancy agreements include such provisions.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
20 W. Jackson Street has approximately 21,048 square feet and will be used as a 24/7 heat respite site during the summer of 2025 for individuals and families in need of cooled, indoor space.
The term of the lease will begin April 14, 2025, through September 30, 2025, with an automatic option continue thereafter on a month to month basis until terminated upon 30 day notification by either Party. The rental rate is $40,000 per month, plus applicable taxes, which is in the range of market rents as determined by the Real Estate Division. The City is responsible for utilities and maintenance. The lease may be canceled pursuant to Arizona Revised Statute 38-511. The lease may contain other terms and conditions deemed necessary by the City.
Contract Term
The term of the lease is five months, beginning April 14, 2025, through September 30, 2025, with an automatic option to continue thereafter on a month to month basis.
Financial Impact
Rent during the term of the lease will be $40,000 per month, plus applicable taxes. Funding is available through Office of Homeless Solution's American Rescue Plan Act and County grant funds.
Location
20 W. Jackson Street
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes, the Office of Homeless Solutions and Finance Department.