Title
Lease of City-Owned Property at the Charlotte Transit Center to Mun Sung and Joyce Sung
Action
Action:
A. Adopt a resolution approving a five-year lease agreement with one five-year extension option between the City of Charlotte and Mun Sung and Joyce Sung, operating as Plaza Sundries, for a retail space located at 310 E. Trade Street (tax parcel number 125-011-14), and
B. Authorize the City Manager to negotiate and execute all documents necessary to complete the transaction with Mun Sung and Joyce Sung, operating as Plaza Sundries, at the Charlotte Transit Center.
Body
Staff Resource(s):
John Lewis, CATS
Allen C. Smith III, CATS
Explanation
§ The city uses the Charlotte Transit Center, located in Council District 1, as the main terminal and transfer point for Charlotte’s public transit system.
§ The leasable spaces provide opportunities for retail and business firms to offer goods and services to customers using the Charlotte Area Transit System.
§ Mun Sung and Joyce Sung own a sundries store that sells medications, newspapers, toiletries, snacks, and comparable items.
§ The lease terms with Mun Sung and Joyce Sung include:
- A five-year lease commencing September 1, 2020, and terminating August 31, 2025 with one option for a five-year extension, to extend the lease through August 31, 2030,
- 930 square feet of retail space,
- Rent:
§ $2,593.35 per month ($31,120.21 per year) for year one,
§ A two percent annual increase yearly, and
§ Tenants pay a share of common area maintenance costs.
§ The initial five-year lease value is estimated to be $161,951.
§ This transaction is consistent with the Council-adopted City-Owned Real Estate and Facilities Policy.
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