Title
Lease with M3 Partners, LLC - PCC16-01 - Amendment (Ordinance S-52242) - Districts 7 & 8
Description
Request to authorize the City Manager, or his designee, to execute amendment to Contract 152835 with M3 Partners, LLC (M3) to extend the contract term and continued use of Ordinance S-41926. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The contract is estimated to produce $353,705.68 in revenue to the City over the 10-year aggregate term.
Report
Summary
This lease is for two UPS Stores that provide necessary services for downtown Phoenix businesses and Phoenix Convention Center Department (PCCD) clients and attendees. M3 (Tenant) currently leases approximately 879 square feet of retail space in the PCCD North Building and 1,627 square feet of retail plus storage space in the West Building. These UPS stores are an essential resource for PCCD clients, offering 125 mailboxes and a wide range of business and guest services. Having an on-site UPS store ensures that event organizers, exhibitors, attendees have immediate access to shipping, receiving, printing, and other logistical services that directly support PCCD operations and enhance the customer experience. Additionally, it provides logistical services, support, and amenities to other downtown businesses and residents. Over the life of the current contract, the store has expanded its amenities to meet evolving client needs, including copier rental services, mobility scooter rentals, Health Insurance Portability and Accountability Act-compliant shredding, luggage check service, and pay-per-use computer rentals. The UPS Store consistently receives positive feedback from PCCD clients and the downtown community.
Contract Term
Upon approval, the lease will be extended from September 1, 2025, through August 31, 2030, for a five-year term with one, five-year option to extend.
Financial Impact
The Tenant will pay approximately $353,705.68 in revenue to the City, over the aggregate 10-year extension.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
- Authorization to enter into contract with The UPS Store for retail lease at Phoenix Convention Center Department Contract 152835 (Ordinance S-41926) on July 1, 2015.
Location
Phoenix Convention Center, 100 N. 3rd Street
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.