Title
Lease of City-Owned Property at JW Clay Parking Deck
Action
Action:
A. Adopt a resolution to approve a lease agreement with Carolina Fit Foods, LLC, operating as Project Lean Nation, with a 63-month term for retail space in 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 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 serves the LYNX Blue Line in Council District 4 and incorporates approximately 15,470 square feet of leasable space for office and retail, in accordance with the Transit Oriented Development ordinance.
* The leasable spaces provide opportunities for retail and business firms to offer goods and services to customers using the Blue Line, along with walk-up customers from surrounding areas.
* Project Lean Nation proposes to open a facility for selling supplements; hygiene products and services; wellness and nutrition consumables; and prepackaged meals.
* The terms of the lease agreement are as follows:
* Approximately 1,711 square feet of retail space in the JW Clay Parking Deck (Suite 211);
* A 63-month term, with one option to extend the lease term for an additional 60 months;
* Rent in the amount of $3,564.58 per month ($42,774.96 per year) for year one, escalating at a rate of three percent annually for each year thereafter. This rate is consistent with market rates; and
* 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 the tenant for 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 $68,4...
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