Title
Orange Communications, Inc. Lease Renewal at the Charlotte Transportation Center
Action
Action:
A. Adopt a resolution approving a five-year lease renewal agreement with Orange Communications, Inc. for retail space at the Charlotte Transportation Center, and
B. Authorize the City Manager or his designee to negotiate and execute all necessary agreements and other documents to complete this transaction.
Body
Staff Resource(s):
John Lewis, Jr., CATS
Allen C. Smith III, CATS
Explanation
§ Orange Communications, Inc. entered into a lease agreement for kiosk space in the Charlotte Transportation Center (CTC) located at 310 E. Trade Street in Council District 1 on May 1, 2018.
§ The lease agreement is currently set to expire on August 31, 2022.
§ The renewal lease term will begin on September 1, 2022, and end on August 31, 2027.
§ The terms of the lease renewal agreement are as follows:
- Approximately 126 square feet of retail kiosk space located in the CTC,
- A five-year term,
- Base rent to be $968.32 per month ($11,619.85 per year) for year one, escalating at a rate of three percent annually for each year thereafter. This rate is consistent with market rates,
- Tenant agrees and understands that future transit-related development may result in the early termination of the lease, and
- All other terms of the lease agreement remain unchanged.
§ The five-year lease value is estimated to be approximately $59,155.
§ 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