Title
Amend City Contract No. 111 a Lease of City-owned Property at 723 W. Polk St with the American Legion Post No. 1 (Ordinance S-48654)
Description
Request to authorize the City Manager, or his designee, to amend City Contract No. 111, and any other agreements as necessary (Amendment), with the American Legion Post No. 1, a nonprofit service organization for military veterans (Legion), to extend the lease term for the Legion's use of City-owned property located at 723 W. Polk Street, also known as 364 N. 7th Avenue (Site). Further request authorization for the City Treasurer to accept funds related to this item. There is no expense impact to the General Fund as a result of this action. The lease extension will generate $100 in annual revenue to the General Fund.
Report
Summary
On Feb. 20, 1920, the City and Legion entered into a 99-year lease of the 1.7 acre Site for the purpose of creating a location and facility for the Frank Luke Jr. Post No. 1 of the American Legion. The lease agreement terminated on Feb. 20, 2019, pursuant to the terms of the contract. On Sept. 5, 2018, the City Council authorized an extension to the lease which terminated on Aug. 1, 2020; however, the amendment was never executed. On July 1, 2021 the City Council authorized an amendment to the lease to retroactively extend the Legion's term from Feb. 20, 2019 until August 1, 2022. Concurrently, the Community and Economic Development Department is negotiating the terms of a disposition and redevelopment agreement for the Site, pursuant to a Request for Proposal authorized by City Council on June 26, 2019.
This amendment will allow for month-to-month extensions of the lease on an as needed basis until the developer is prepared to act on the property and allows the Legion to remain undisturbed in their current location for as long as possible.
Contract Term
This Amendment will extend the lease term on a month-to-month basis, as needed, beginning Aug. 1, 2022, unless earlier terminated by the City.
Financial Impact
There is no expense impact to the General Fund as a result of this action. The Amendment will create a pro-rated annual lease payment of $100 which will be deposited into the General Fund.
Concurrence/Previous Council Action
Resolution 524, authorizing this contract, was passed by the Commission of the City of Phoenix on March 3, 1920. Ordinance S-44976, authorizing the first amendment, was passed by the City Council on Sept. 5, 2018, but the amendment was never executed. Ordinance S-47830, authorizing the retroactive amendment, was passed by the City Council on July 1, 2021.
Location
723 W. Polk Street (also known as 364 N. 7th Ave.)
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.