Title
Lease of City-Owned Property at Charlotte Gateway Station to Flix North America Inc.
Action
Action:
A. Adopt a resolution to approve a ground lease with Flix North America, Inc. including its subsidiaries and affiliates, one of which is Greyhound Lines, Inc., to continue their temporary operations on city property at Charlotte Gateway Station for a term of 12 months,
B. Authorize the City Manager to renew the ground lease for up to four, six-month terms, and
C. Authorize the City Manager to negotiate, execute, and amend all documents necessary to complete the transaction.
Body
Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS
Explanation
§ In March 2018, City Council approved a ground lease agreement with Greyhound Lines, Inc. for city-owned property located at 120 South Graham Street in Council District 2.
§ This property is part of the site for the proposed Charlotte Gateway Station (CGS). The lease was for a maximum term of six years at a lease rate of $1 per year. The current lease was extended and is set to expire on August 31, 2025.
§ The original lease allowed Greyhound Lines, Inc., an intercity bus carrier, to relocate to this interim location so that construction of Phase I (tracks and passenger rail platform) of the CGS project could occur.
§ The Greyhound operation at this location is intended to continue until construction begins on Phase II of the CGS project. Phase II will include an Amtrak station and a bus facility, which is currently planned to accommodate both CATS and intercity buses.
§ The new lease will be with Flix North America Inc. Flix SE acquired Greyhound Lines, Inc. in October 2021 and launched Flix North America, Inc. to oversee Greyhound Lines, Inc. and FlixBus.
§ The new lease terms include:
- Lease rate will be the same as the current lease;
- Greyhound will be responsible for all insurance and utility costs and assume responsibility for damages from operations on the main block parcel; and
- The city shall have the ability to terminate the lease early if Greyhound is in default.
Attachments
Attachment(s)
Resolution