Title
Palmisano Brothers Produce, Inc., dba Peddler’s Son Produce Co. Ground Lease (Ordinance S-45979)
Description
Request to authorize the City Manager, or his designee, to enter a ground lease with Palmisano Brothers Produce, Inc., dba Peddler’s Son Produce, Co. (Peddler’s Son) for Aviation Department (AVN) property located at 3238 E. Jackson St. The total anticipated revenue over the term, if all options are exercised, will be approximately $265,071.
Report
Summary
Peddler’s Son has requested to lease approximately 30,122 square feet of undeveloped AVN property located at 3238 E. Jackson Street. to park their fleet of delivery trucks near its produce distribution business also located on Jackson St. Peddler’s Son will invest approximately $100,000 to improve the premises which will include paving, security lighting, and fencing. Other uses permitted under current applicable zoning ordinances and regulations may be considered.
Contract Term
The term will be five years with five one-year options to renew at the sole discretion of the Aviation Director. The lease may be terminated for any reason, by either party, upon 120 days notice.
Financial Impact
Rent will be approximately $21,085 per year for years one through three. The rent will increase thereafter by the following amounts:
- Beginning the fourth year, rent will increase to $24,097 per year.
- Beginning the fifth year, rent will increase to $27,109 per year.
- For option years six through 10, rent will be $30,122 per year.
The total anticipated revenue over the term, if all options are exercised, will be approximately $265,071.
Concurrence/Previous Council Action
This item was recommended for approval by the Phoenix Aviation Advisory Board on Aug. 15, 2019, by a vote of 6-0.
Location
3238 E. Jackson St.
Council District: 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Aviation Department.