Title
Authorization to Amend Lease with Felipe Perez Farms, Inc. to Extend the Term (Ordinance S-44241)
Description
Request authorization for the City Manager, or his designee, to amend Lease 128202 between the City of Phoenix and Felipe Perez Farms, Inc. for approximately 39 acres of City-owned land in the vicinity of 59th Avenue and Dobbins Road to extend the term for one year with one additional one-year option. Rent during the contract will be $7,166.25 per year, plus applicable taxes.
Report
Summary
The 39-acre City-owned parcel is surrounded by private farm land occupied by Felipe Perez Farms, Inc., who is a long-term tenant in good standing. The property is listed on the excess land list with the farm lease considered an interim use to generate revenue and reduce maintenance. The City may cancel the lease upon 90-day written notification in the event that the property is to be listed for sale or developed. Rent during the one-year extended term and the option period will be $183.75 per acre per year which is within the range of market rents as determined by the Real Estate Division.
Contract Term
One year with one additional one-year option to extend.
Financial Impact
Annual revenue will be $7,166.25, plus applicable taxes. The property was acquired using Impact Fees.
Concurrence/Previous Council Action
This contract was approved by Ordinance S-36851, adopted Feb. 3, 2010 and Ordinance S-40311, adopted Oct. 30, 2013.
Location
Along the east side of south 59th Avenue, approximately 1,300 square feet south of Dobbins Road, identified by assessor parcel number 300-02-060.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Parks and Recreation and Finance departments.