Title
Lease of City-owned Property at the JW Clay Parking Deck
Action
Action:
A. Adopt a resolution to approve a lease agreement with Crazy Legs, LLC For a 63-month term for retail space at the JW Clay Parking Deck,
B. Authorize the City Manager to renew the lease for up to one, 60-month term, and
C. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the transaction.
Body
Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS
Explanation
* The JW Clay Parking Deck is on the LYNX Blue Line Extension in Council District 4 and incorporates approximately 15,470 square feet of leasable space for office and retail, per the Transit Oriented Development ordinance.
* The leasable spaces within the JW Clay Parking Deck provide opportunities for retail and businesses to offer goods and services to customers using the Blue Line, along with walk-up customers from surrounding areas.
* Crazy Legs, LLC proposes to operate a caf? and takeout restaurant.
* The terms of the lease agreement are as follows:
* Approximately 2,352 square feet of retail space in the JW Clay Parking Deck (Suite 222);
* A 63-month term, with one option to extend the lease term for an additional 60-months;
* Lease amount of $4,900 per month ($58,800 annually) for year one, escalating at a rate of three percent annually for each year thereafter. This rate is consistent with market rates;
* The tenant would pay a share of common area maintenance costs.
* Tenants are responsible for improvement costs related to upfit of the parking deck office and retail space.
* The city agrees to reimburse tenant improvement costs only if the city terminates the lease during the initial term for transit-related activity. The total amount of reimbursable expenses shall not exceed $40 per square foot or $94,080.
Fiscal Note
Funding: Revenues from the lease will be deposited in the CATS Operating Budget
Attachments
Attachment(s)
Resolut...
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