Title
Lease of City-Owned Property in the JW Clay Parking Deck to IvyRehab
Action
Action:
A. Adopt a resolution authorizing the City Manager to execute a retail lease agreement with IVYREHAB University NC, LLC, operating as IvyRehab, for the lease of approximately 2,604 square feet in the JW Clay Parking Deck for a 10-year term with extension options, and
B. Authorize the City Manager to negotiate and execute all documents necessary to complete the transaction with IVYREHAB University NC, LLC, operating as IvyRehab, at the JW Clay Parking Deck.
Body
Staff Resource(s):
John Lewis, Jr., CATS
Allen C. Smith III, CATS
Explanation
§ The JW Clay Parking Deck on the LYNX Blue Line Extension (BLE) 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 and to walk-up customers from surrounding areas.
§ IvyRehab proposes to open a facility for providing physical, speech, and occupational therapy and other ancillary uses.
§ The lease terms are:
- Approximately 2,604 square feet of retail space in the JW Clay Parking Deck (Suite 224);
- 10-year term with two options to extend the lease term for an additional 60 months each;
- A base rent of $5,425 per month ($65,100 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.
§ The tenant is 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.
Attachments
Attachment(s)
Resolution