Title
Authorization to Amend Lease to Extend Term for Transit Center and Park-and-Ride at Metrocenter Mall (Ordinance S-46122)
Description
Request to authorize the City Manager, or his designee, 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. Further request authorization for the City Controller to disburse funds related to this item. Base rent will be $60,000 per year (plus applicable taxes) over the five-year extension period.
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, passenger waiting areas, and related improvements; and (2) a park-and-ride with 200 non-exclusive parking spaces. The City is in the final year of its final option period for the lease. The current lease 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 construction of the Northwest Extension Phase II Project and subsequent light rail operations, 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 cancelation provision. The extension will allow sufficient time for the City to demolish and remove the current transit infrastructure on this site and return it to its original condition in coordination with the planned Northwest Extension Phase II light rail project. 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 canceled 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. Funds are available in the Public Transit Department's operating budget under the Transportation 2050 Fund.
Concurrence/Previous Council Action
- The current contract was authorized by Ordinance S-29487, adopted Oct. 16, 2002.
- This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Oct. 2, 2019, by a vote of 4-0.
Location
Metro Parkway West, across from Mission Lane, within a portion of property identified by the Maricopa County Assessor as Parcel 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.