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File #: 15-20240    Version: 1 Name:
Type: Business Item Status: Agenda Ready
File created: 4/24/2023 In control: City Council Business Meeting
On agenda: 5/22/2023 Final action:
Title: Lease of City-Owned Property at JW Clay Parking Deck
Attachments: 1. Resolution - JW CLAY_ArKay
Lease of City-Owned Property at JW Clay Parking Deck

A. Adopt a resolution to approve a lease agreement with ArKay Beauty Supply LLC, with a 61-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.

Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS

* The JW Clay Parking Deck is on the LYNX Blue Line Extension in Council District 4 and incorporates approximately 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 Blue Line Extension, along with walk-up customers from surrounding areas.
* ArKay Beauty Supply proposes using the space to sell beauty supplies.
* The lease terms are:
* Premises: Approximately 2,352 square feet of retail space in the JW Clay Parking Deck (Suite 222);
* Term: 61-months, with one option to extend the lease term for an additional sixty (60) months;
* Base Rent: $4,900 per month ($58,800 per year) for year one, escalating at a rate of 3 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 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 $94,080.

Charlotte Business INClusion
This is a Real Estate Leasing and Acquisition Contract and is exempt (Part A: Appendix 1.27 of the Charlotte Business I...

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