Title
Authorization to Enter into Land Lease and Operating Agreement with Renew Phoenix at City of Phoenix Resource Innovation Campus (Ordinance S-47549)
Description
Request to authorize the City Manager, or his designee, to enter into a lease and operating agreement with Renew Phoenix at the City of Phoenix's Resource Innovation Campus located at 27th Avenue and Lower Buckeye Road for one year, with a one-year option to extend. Further request to authorize the City Treasurer to accept all funds related to this item. Revenue from the land lease is $2,800 per year.
Report
Summary
Ordinance S-45501 authorized an agreement for processing plastics and a land lease with Renew Phoenix. As part of the program, Renew Phoenix will lease approximately 30,000 square feet at the Resource Innovation Campus (RIC) for 10 years at $8,400 per year.
The Public Works Department and Renew Phoenix have agreed to a smaller-scale pilot program prior to entering into the 10-year contract. The leased site for the pilot program will be 10,000 square feet for a one-year term with a one-year option to extend. The lease rate will be $2,800 per year, plus applicable taxes, which is within the range of market rents as determined by the Finance Department Real Estate Division. The term of operating agreement will be one year and run concurrently with the lease. All other terms and conditions will remain the same as approved in the original Request for Proposal.
Contract Term
The lease term and operating agreement for the pilot program will be one year beginning on or about July 1, 2021, with a one-year option to extend.
Financial Impact
Revenue from the land lease is $2,800 per year. There is no negative financial impact to the City.
Concurrence/Previous Council Action
- The Water, Wastewater, Infrastructure and Sustainability Subcommittee recommended approval of a 10-year agreement for processing plastics and land lease on March 6, 2019, by a vote of 3-0.
- The City Council approved entering into a 10-year agreement for processing plastics and land lease (Ordinance S-45501) on April 3, 2019.
Location
27th Avenue Transfer Station - 3060 S. 27th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Finance departments.