Title
Authorization to Lease Real Property Located at 20 West Jackson Street from Sunrise Equities, LLC. (Ordinance S-52627) - District 7
Description
Request to authorize the City Manager, or his designee, to enter into a lease with Sunrise Equities, LLC., for use of improved property located at 20 West Jackson Street to provide a heat respite site for the Office of Homeless Solutions. Further request authorization for the City Controller to disburse all funds related to this item.
Request the City Council to grant an exception Pursuant to Phoenix City Code § 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise would be prohibited by Phoenix City Code § 42-18, which is a necessary condition of the lease.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
The Office of Homeless Solutions requests authorization to lease a 21,048 square-foot building located at 20 West Jackson Street for the purpose of operating a 24/7 heat respite site during the 2026 summer season. The structure will provide individuals and families a cool, indoor space for relief from the heat. The rental rate is $40,000 per month, plus applicable taxes, which is in the range of market rents as determined by the Real Estate Division. Lessee is responsible for utilities and common area maintenance.
Contract Term
The term of the lease is five months beginning April 24, 2026, through September 30, 2026, with an automatic option to continue thereafter on a month-to-month basis, until terminated with 30 days written notice by either Party. The lease may be canceled Pursuant to Arizona Revised Statute 38-511 and may contain other terms and conditions deemed necessary by the City.
Financial Impact
Rent during the term of the lease will be $40,000 per month, plus applicable taxes. Funding is available in the Human Services Department's operating budget and via existing federal, state, and county grant funding.
Concurrence/Previous Council Action
Agreement 162845-0, authorized by Ordinance S-51722, adopted March 25, 2025.
Location
20 West Jackson Street
Assessor's Parcel Number: 112-22-103
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Office of Homeless Solutions and the Finance Department.