Title
Lease of City-Owned Property to AIA Arizona, American Institute of Architects - Amendment 3 (Ordinance S-47467)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 130769 with AIA Arizona, American Institute of Architects, a non-profit corporation (AIA) to extend the lease term for a three-year period plus two additional one-year options. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
AIA currently leases approximately 4,425 square feet of interior office space on the 2nd floor of the J.W. Walker building located at 30 N. 3rd Ave. The current contract term expires April 30, 2021. The agreement will be amended to extend the term for a three-year period plus two additional one-year options. Base rent during the first year of the three-year extension period will be $5,065.28 per month, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division. Base rent will increase annually thereafter based on the Consumer Price Index (CPI). Each option period will be exercised upon mutual agreement of the City and AIA. AIA has occupied this space since 2001 and is in good standing.
Financial Impact
Revenue during the first year of the three-year extension period will be $60,783.36 per year, plus applicable taxes.
Concurrence/Previous Council Action
The City Council approved:
- Lease of City-Owned Property to AIA Arizona Agreement 130769 (Ordinance S-37723) on March 16, 2011;
- Lease of City-Owned Property to AIA Arizona Agreement 130769 - Amendment 1 (Ordinance S-37998) on June 15, 2011; and
- Lease of City-Owned Property to AIA Arizona Agreement 130769 - Amendment 2 (Ordinance S-42192) on Dec. 16, 2015.
Location
30 N. 3rd Ave., 2nd Floor
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Finance departments.