Title
Lease of City-Owned Property at University City Blvd Parking Deck
Action
Action:
A. Adopt a resolution to approve a lease agreement with Prime Time Aesthetics LLC, d.b.a Ship Wreck Athletics and Performance Center, with an 87-month term for retail space in the University City Blvd Parking Deck,
B. Adopt a resolution to approve a lease agreement with The FitFat Coach, LLC, d.b.a TFC Barbell Club, with an 87-month term for retail space in the University City Blvd Parking Deck,
C. Authorize the City Manager to renew each lease for up to one, 60-month term, and
D. Authorize the City Manager to negotiate and execute all documents necessary to complete the transactions.
Body
Staff Resource(s):
Brent Cagle, CATS
Kelly Goforth, CATS
Lori Lencheski, CATS
Explanation
§ The University City Blvd. (UCB) Parking Deck on the LYNX Blue Line Extension (BLE) in Council District 4 incorporates approximately 11,495 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.
Action A:
§ Ship Wreck Athletics and Performance Center proposes using the space as a gym.
§ The lease include:
- Premises: Approximately 2,687 square feet of retail space in the UCB Parking Deck (Suite 208);
- Base Rent: $4,590.29 per month ($55,083.48 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 $107,480.
Action B:
§ TFC Barbell Club proposes using the space as a gym.
§ The lease terms include:
- Premises: Approximately 4,640 square feet of retail space in the UCB Parking Deck (Suite 212 and 213); and
- Base Rent: $7,926.67 per month ($95,120.04 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 $185,600.
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 leases will be deposited in the CATS Operating Budget.
Attachments
Attachment(s)
Ship Wreck Athletics and Performance Center Resolution
TFC Barbell Club Resolution