Title
Amend Lease with G-Farms Partnership (Ordinance S-45307)
Description
Request to authorize the City Manager, or his designee, to amend G-Farms Partnership’s (G-Farms) ground lease 126833 by removing approximately 3.5 acres from the leasehold and reducing the annual rent received from G-Farms from $124,351.97 to approximately $123,879.26.
Report
Summary
The Aviation Department (Aviation) owns approximately 900 acres of land located north of Luke Air Force Base. The majority of this land is being leased to G-Farms through August 2034, to be used as farm land. G-Farms and Aviation mutually desire to reduce the leasehold premises from 871.76 acres to approximately 868.23 acres. This reduction of leasehold will allow John F. Long Properties, LLLP to access and use the 3.5 acres of land to construct a railroad spur that will connect their property to an existing rail owned by BNSF.
Financial Impact
Annual rent received from G-Farms will be reduced from $124,351.97 to approximately $123,879.26.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board Business and Development Subcommittee on Dec. 6, 2018 by a vote of 3-0.
Location
Near Peoria Avenue and Litchfield Road.
Council District: Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.