Title
Authorization to Amend License Agreement 145223 for City-Owned Property with Royal Palm Neighborhood to Extend Term (Ordinance S-52551) - District 5
Description
Request to authorize the City Manager, or his designee, to amend License Agreement 145223 with Royal Palm Neighborhood, a nonprofit organization, to extend the term for five years, with two additional two-year options to further extend the term. Further request authorization for the City Treasurer to accept all necessary funds in accordance with the terms of the license.
Report
Summary
Royal Palm Neighborhood currently licenses approximately 19,266 square feet of City-owned property located along the east side of 19th Avenue between Las Palmaritas and El Caminito drives. This is a remnant site with limited development potential that was originally acquired by the Public Transit Department as part of the Northwest Extension of the Light Rail Project. Royal Palm Neighborhood operates a community garden for the benefit of the surrounding area by fostering community collaboration, enhancing green space, and providing residents with agricultural experiences.
Rent during the initial five-year term of the extension will be $110 per year, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division.
Royal Palm Neighborhood will provide insurance and indemnification acceptable to the City's Risk Management Division and the Law Department. The license agreement is subject to cancellation pursuant to Arizona Revised Statute 38-511 or upon 60-days prior written notice by either party.
All other terms and conditions will remain the same.
Contract Term
This amendment will extend the license agreement's term for a five-year period beginning on June 13, 2026, through June 12, 2031, with two additional two-year options to extend the term further.
Financial Impact
Annual revenue during the initial year of the extended term will be $110, plus applicable taxes.
Concurrence/Previous Council Action
Agreement 145223-01 and 145223-02, Ordinance S-42885 adopted September 21, 2016.
Agreement 145223-03, 145223-04, 145223-05, 145223-06, 145223-07, and 145223-08, Ordinance S-46827 adopted July 1, 2020.
Location
Along the east side of 19th Avenue between W. Las Palmaritas and W. El Caminito drives
Maricopa County Assessor Parcel Numbers: 158-08-071 and 158-08-009A
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Public Transit and Finance departments.