Title
Sublease of City-Leased Property at 8115 Eastland Yards Boulevard, Suite 105
Action
Action:
A. Adopt a resolution approving a sublease of city-leased property located at 8115 Eastland Yards Boulevard, Suite 105 with Rumbao Latin Dance Company LLC, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the lease of the property.
Body
Staff Resource(s):
Shahid Rana, Economic Development
Todd DeLong, Economic Development
Explanation
§ Rumbao Latin Dance Company LLC desires to lease 3,245 rentable square feet in Suite 105 of the mixed-use development located at 8115 Eastland Yards Boulevard for the purposes of operating a Latin dance studio, including the offering of classes, performances and recitals, and associated business operations of a dance studio.
§ The city has authority to enter into this lease agreement under its Charter and NC General Statute Section 160A-272.
§ The lease terms include:
- A five-year initial term;
- One, four-year renewal option; and
- An annual lease rate of $12 per square foot to be increased annually at a rate of three percent and 15 percent of gross sales exceeding an artificial breakpoint of $325,000 in any year.
Background
§ While updating City Council and the Jobs and Economic Development Committee over the past several years, staff highlighted the city’s commitment to building an equitable economy in East Charlotte. To advance this goal, the city executed a master lease of approximately 16,175 square feet of ground floor commercial space in the two mixed use buildings development by Crosland Southeast (CSE).
- Small business support as part of the Eastland Yards redevelopment has been an integral component of the small business support strategy since November 2020.
§ Recognizing that access to affordable commercial space is a major barrier for small business growth, the city has partnered with CSE over the past year to ensure a diverse tenant mix that:
- Activates the ground floor and complements the redevelopment;
- Strengthens the retail/commercial balance;
- Increases pedestrian activity throughout the day; and
- Creates a unique sense of place.
§ On August 28, 2023, City Council authorized the City Manager to negotiate and execute a master lease agreement with CSE for the Eastland Yards site. Key terms include:
- 10-year lease term with at least one, five-year extension option;
- Base triple-net rent of $39.70 per rentable square foot; and
- An average tenant allowance of $35 per square foot from CSE.
§ The Master Lease agreement was executed in December 2023.
Attachments
Attachment(s)
Resolution