Title
Lease of City-Owned Property at JW Clay Parking Deck to Atrium Health
Action
Action:
Adopt a resolution authorizing the City Manager to execute a retail lease agreement with The Charlotte-Mecklenburg Hospital Authority Carolina Physicians Network, Inc., operating as Atrium Health, for the lease of approximately 2,325 square feet in the JW Clay Parking Deck for a 10-year term with extension options.
Body
Staff Resource(s):
Mike Davis, Engineering and Property Management
Tony Korolos, Engineering and Property Management
John Lewis, CATS
Explanation
§ On December 17, 2018, City Council approved the lease, without extension options. The action being requested allows for the inclusion of extension options.
§ The JW Clay Parking Deck on the LYNX Blue Line Extension (BLE), located in Council District 4, incorporates 15,470 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.
§ Atrium Health proposes to open an urgent care and related medical services facility.
§ The retail space will not be needed by the city for the term of the proposed lease.
§ The lease terms with Atrium Health are:
- Premises: 2,325 square feet of retail space in the JW Clay Parking Deck,
- Term: 10 years with three extension options for 60 months each, and
- Rent: $5,618.75 per month ($67,425 per year) with 2.5 percent annual increases. This rate is consistent with market rates.
§ Tenants are responsible for improvement costs related to up-fit of the parking deck office and retail space.
Fiscal Note
Funding: Revenue from the lease will be deposited in the CATS Operating Budget
Attachment(s)
Map
Resolution