Title
Authorization to Amend Lease with Elite Metro AZ, LLC to Extend Term (Ordinance S-45934)
Description
Request to authorize the City Manager, or his designee, to amend Contract 137499 with Elite Metro AZ, LLC to extend the lease term for a one-year period with three additional one-year options. Revenue during the initial one-year extension will be $15,470 per year, plus applicable taxes.
Report
Summary
Elite Metro AZ, LLC (Tenant) leases approximately 1,105 square feet of retail space located at 1945 W. Dunlap Ave., Suite 6. The Tenant is in good standing and is currently occupying the space under the lease's holdover provision. The lease will be amended to extend the term for a one-year period with three additional one-year options to extend. Each option period will be exercised upon mutual written consent of the City and Tenant. The initial extended term will begin Oct. 1, 2019, and expire Sept. 30, 2020. Rent during the initial one-year extension will be $14.00 per square foot per year, or $15,470, plus applicable taxes, which is within the range of market rents as determined by the Finance Department's Real Estate Division. Rent will be escalated at a rate of three percent at the beginning of each option period. The Tenant pays a proportionate share of building operating costs and common area expenses.
Contract Term
The extended term is one year, with three one-year options. The initial extended term will begin Oct. 1, 2019, and expire Sept. 30, 2020.
Financial Impact
Revenue during the initial one-year extension will be $15,470 per year, plus applicable taxes.
Concurrence/Previous Council Action
This contract was authorized by Ordinance S-40382, adopted Nov. 20, 2013.
Location
1945 W. Dunlap Ave., Suite 6
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, and the Public Transit and Finance departments.