Title
Authorization to Amend Farming Lease with Hart Farms, LLC to Extend Term (Ordinance S-49085)
Description
Request to authorize the City Manager, or his designee, to amend Lease 127914 with Hart Farms, LLC to extend the term for one year beginning Jan. 1, 2023 and to add three additional one-year options to extend. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Hart Farms currently leases approximately 12.59 acres of vacant City-owned property located at 79th and Virginia avenues and is a long-term tenant in good standing. Extending the existing lease as an interim farm use will generate revenue to the City while reducing maintenance and liability costs. The lease allows the City to cancel without cause upon 90-day written notification, allowing reasonable time for harvesting crops.
The lease will be extended for one year beginning Jan. 1, 2023, through Dec. 31, 2023, and will include three additional one-year options to extend through Dec. 31, 2026. Rent during the first year of the extended term will be $210 per acre, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division. Rent will be adjusted to market rent, not to exceed five percent, at the beginning of each option period.
All other terms and conditions will remain the same.
Contract Term
One-year extension from Jan. 1, 2023, through Dec. 31, 2023, plus three additional one-year options to extend through Dec. 31, 2026.
Financial Impact
Revenue during the first year of the extended term will be $2,643.90, plus applicable taxes.
Concurrence/Previous Council Action
Lease Agreement 127914, authorized by Ordinance S-36765 on Dec. 16, 2009.
Lease Agreement Amendments 127914-001, 002 and 003, authorized by Ordinance S-39316 on Oct. 26, 2012.
Lease Agreement Amendments 127914-004 through 009, authorized by Ordinance S-43088 on Dec. 14, 2016.
Location
West of 79th Avenue, along the south side of Virginia Avenue, identified by Maricopa County Assessor parcel number 102-38-005L.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation and Finance departments.