Title
Authorization to Amend Lease with Bio-Medical Applications of Arizona, LLC, to Extend Term (Ordinance S-50237)
Description
Request to authorize the City Manager, or his designee, to amend Lease 130171 with Bio-Medical Applications of Arizona, LLC, to extend lease term for one year, with two additional, one-year options to extend. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Bio-Medical Applications of Arizona, LLC (Bio-Medical), leases approximately 10,350 square feet of City-owned space located at 1957 W. Dunlap Ave., Suite 6. The space is utilized as an outpatient dialysis facility and general office. The term of the lease expires Nov. 30, 2023. The lease will be amended to extend the term for one year beginning Dec. 1, 2023, through Nov. 30, 2024, and provide for two additional, one-year options to extend. Base rent during the one-year extension is $12,506.25 per month, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division. Base rent will be adjusted three percent at the beginning of each option period.
All other terms and conditions will remain the same. Bio-Medical is a long-term tenant in good standing.
Contract Term
The term of the lease will be extended for one year, with two additional, one-year options to extend.
Financial Impact
Revenue during the first year of the extended term will be $150,075, plus applicable taxes.
Concurrence/Previous Council Action
Lease 130171-001 through 130171-006, authorized by Ordinance S-37261 on July 7, 2010.
Location
1957 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.