Title
Authorization to License Vacant City-owned Land Located at 314 and 318 N. 5th Ave. to T.B. Penick and Sons, Inc. (Ordinance S-50157)
Description
Request to authorize the City Manager, or his designee, to enter into a construction staging license with T.B. Penick and Sons, Inc. (T.B. Penick), across a portion of vacant City-owned parcels located at 314 and 318 N. 5th Ave. for temporary construction staging needs. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
T.B. Penick will license approximately 13,900 square feet of vacant City-owned land at 314 and 318 N. 5th Ave., for construction staging purposes for the construction of a nearby apartment building by a private developer. The license fee is $174,000, plus applicable taxes, for a one-year term which is within the range of market rents as determined by the Real Estate Division.
T.B. Penick is responsible for all costs related to use of the land under the license, including restoration of the site upon expiration. The license will include insurance and indemnity provisions acceptable to the City's Risk Management Division and City Attorney. The license may be canceled pursuant to Arizona Revised Statutes section 38-511. The license may contain other terms and conditions deemed necessary by the City.
Contract Term
The license term is one year. The license may be extended on a month-to-month basis, not to exceed twelve months.
Financial Impact
Revenue during the one-year term will be $174,000, plus applicable taxes. Revenue during any extension will be $14,500 per month, plus applicable taxes.
Location
314 and 318 N. 5th Ave., identified by Maricopa County Assessor parcel numbers 111-41-082 and 111-41-084.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing and Finance departments.