Title
Lease of City-Owned Property at University City Boulevard Parking Deck
Action
Action:
A. Adopt a resolution to approve a lease agreement with Greyhound Lines Inc. with a 63-month term for retail space in the University City Blvd Parking Deck and non-exclusive use of two bus bays,
B. Authorize the City Manager to renew the lease for up to two, 60-month terms, and
C. Authorize the City Manager to negotiate and execute all documents necessary to complete the transactions.
Body
Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS
Explanation
§ The University City Blvd. (UCB) Parking Deck on the LYNX Blue Line Extension (BLE) in Council District 4 incorporates approximately 11,495 square feet of leasable space for office and retail, per the Transit Oriented Development Ordinance.
§ The leasable spaces provide opportunities for retail and business firms to offer goods and services to customers using the BLE, along with walk-up customers from surrounding areas.
§ Greyhound Lines Inc. (Greyhound) proposes using this space to provide intercity bus service.
§ Greyhound is currently leasing city-owned property at 601 W. Trade St. but is required to vacate for future construction of the Charlotte Gateway Station. A new location is necessary for Greyhound to continue providing intercity bus service.
§ The provision of light rail, local bus, and intercity bus services at this location will enhance transportation options for the community and CATS riders.
§ The lease terms include:
- Premises: Approximately 2,472 square feet of retail space at UCB Parking Deck (Unit 215);
- Base Rent: $4,223 per month ($50,676 per year) for year one, escalating at a rate of 3 percent annually for each year thereafter. This rate is consistent with market rates; and
- Tenant would pay a share of common area maintenance costs.
§ Tenant is responsible for improvement costs related to upfit of the retail space, and costs related to capital improvements to the bus bays.
§ The city agrees to reimburse tenant for tenant improvement costs (upfit) only if the city terminates the lease during the initial term for transit-related activity. This does not include reimbursement for capital improvements to the bus bays. The total amount of reimbursable expenses shall not exceed $40 per square foot or $98,880.
Charlotte Business INClusion
This is a real estate leasing and acquisition contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business INClusion Policy).
Fiscal Note
Funding: Revenue from the lease will be deposited in the CATS Operating Budget.
Attachments
Attachment(s)
Resolution