Title
Lease of City-Owned Property at 705 West Fourth Street
Action
Action:
A. Adopt a resolution to approve a ground lease of city-owned property at 705 West Fourth Street (parcel identification number 073-161-11) with PS Marks LLC for a 60-month term for construction laydown, parking, and related purposes,
B. Authorize the City Manager to negotiate, execute, and amend all documents necessary to complete the transaction, and
C. Adopt a budget ordinance appropriating $1,107,824 from PS Marks LLC to the CATS Operating Fund.
Body
Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS
Explanation
§ On September 23, 2019, City Council approved CATS’ purchase of the property at 705 West Fourth Street (located in Council District 2) from Norfolk Southern for future transit needs and for short-term use such as construction laydown area before the property is needed for transit development.
§ On June 24, 2024, City Council approved the Bank of America Stadium Improvements Project, which stipulated that Tepper Sports and Entertainment (TSE) would enter into an agreement for the use of the CATS lot.
§ This ground lease will allow PS Marks LLC to use the property for a period of five years until it is needed for CATS transit projects. This lease, lease is contingent upon TSE’s agreement to accommodate future CATS right-of-way needs on the site adjacent to the CATS lot.
§ On August 4, 2025, CATS entered into a Temporary Construction Easement agreement with Panthers Stadium LLC for the purposes of construction laydown, parking, and access in connection with renovation or construction at the stadium and practice facility.
§ The Temporary Construction Easement consideration was $490,000, which will be credited to the first year’s payment under this new lease.
§ The ground lease terms are:
- Use: Construction laydown, construction parking, truck turnaround and shake-out, access and other related purposes in connection with renovation or construction project at and adjacent to the stadium and practice facility including temporary relocation of team operational needs, TSE employee parking, and operating and selling parking to third parties and the general public.
- Term: 60-months, with an option to extend lease for additional five months, if mutually agreed upon.
- Lease rate: $1,107,824 per year, which is market rate based on an appraisal conducted by the city.
§ The city/CATS will retain access to the site to allow for environmental, soils, structural, and survey investigations related to future CATS projects. If such access causes areas to be unavailable for TSE use, then rent abatement will be provided based on the time period and square footage of the area made unavailable.
Fiscal Note
Funding: Proceeds from the lease will be deposited in the CATS Operating Budget
Attachments
Attachment(s)
Map
Resolution
Budget Ordinance