Title
Authorization to Amend Lease to Extend Term for the Transit Center and Park-and-Ride at Metrocenter Mall
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval to amend Contract 104427 with Carlyle ER Metro, LLC to extend the lease term by one five-year period for the transit center and park-and-ride at Metrocenter Mall. The aggregate contract value, including all option years, will not exceed $300,000 (excluding taxes).
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
In 2003, the City of Phoenix leased approximately 113,163 square feet of land located at the southwest corner of the Metrocenter Mall property for public transit purposes. The leased premises contain two functional areas: (1) a transit center with a bus shelter and related improvements and passenger waiting areas, and (2) a park-and-ride with 200 non-exclusive parking spaces. The City is in the final year of the final option period for the lease. The current lease contract expires Dec. 31, 2019. The Public Transit Department desires to continue operating the transit center and park-and-ride at this location to coincide with the construction and future operations of the Northwest Extension Phase II light rail project, which will serve the Metrocenter Mall area.
The lease will be amended to extend the term for one five-year period. Base rent during the extended term will remain at $60,000 per year (plus applicable taxes), which is deemed reasonable by the Finance Department's Real Estate Division. The lease will also be amended to include a mutual cancellation provision. The extension allows for sufficient time to coincide with future light rail operations as well as the requirement for the City to demolish and remove the currently constructed transit improvements and return the site to its original condition. All other terms and conditions of the current lease will remain in effect.
Contract Term
The extended contract term is one five-year period, expiring Dec. 31, 2024. The contract may be cancelled by either party with 360 days written notice.
Financial Impact
Base rent will be $60,000 per year, plus applicable taxes, over the five-year extension period.
Concurrence/Previous Council Action
The current contract was authorized by Ordinance S-29487, adopted Oct. 16, 2002.
Location
Along N. Metro Parkway West, across from W. Mission Lane, within a portion of property identified by Maricopa County Assessor parcel number 149-16-005A
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.