Title
Amend Real Property Commercial Lease with Almond Brothers, L.L.C. (Ordinance S-53226) - District 8
Description
Request to authorize the City Manager, or his designee, to amend Real Property Commercial Lease No. 159321-0 with Almond Brothers, L.L.C. (Almond Brothers) to extend the term of the lease on a month to month basis not to exceed one year. The City Treasurer is authorized to accept all payments and revenues for purposes of this Ordinance.
Report
Summary
Almond Brothers is an almond roasting and seasoning company that produces a variety of gourmet snacks offered through retail stores like Sprouts and A.J.s Fine Foods and online with shipments worldwide. Its industrial kitchen is located at 4102 E. Air Lane in Phoenix (Property). In Oct. 2023, the Aviation Department voluntarily acquired title to the Property and leased it back to Almond Brothers in order to allow additional time for Almond Brothers to move out and relocate its business operations. The month to month term of the lease will expire on Oct. 10, 2026.
Almond Brothers' facility certifications for food production will not be renewed in March 2027 due to the building's age and condition. Almond Brothers has requested a short lease extension to allow for more time to finalize the negotiations on a new production facility and to execute an orderly move out of the equipment.
After the Property is vacated, the Aviation Department will immediately demolish the building in favor of improvements that support aeronautical development.
Contract Term
The term of the lease will expire on Oct. 10, 2026. The amendment will extend the term on Oct. 11, 2026 on a month to month basis not to exceed one year to allow Almond Brothers additional time needed to move out.
Financial Impact
Almond Brothers will pay a monthly market rent of $10,803.24 or an annual market rent of $129,638.88. Rent for October 2026 through March 2027 will be paid in advance. If Almond Brothers vacates before March 2027, the rent will be prorated and a refund will be provided, if appropriate.
Concurrence/Previous Council Action
The Real Property Commercial Lease No. 159321-0, which was authorized by Ordinance S-49938, was adopted June 28, 2023.
Location
4102 E. Air Lane
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.