COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Kelly Garry, City Attorney
SUBJECT:Title
Action: Landscaping Agreement and Ground Lease for the Display of Vehicles with Bradley Chevrolet, Inc. (Kelly Garry)
Body
FUNDING SOURCE:
N/A
PURPOSE:
To consider approval of a Landscaping Agreement and Ground Lease with Bradley Chevrolet for the display of vehicles.
BACKGROUND:
Lake Havasu City owns small parcels of property located in front of the Bradley Chevrolet business, more specifically described as a 10,120 square foot planter strip (506’x 20’), a 19,600 square foot Industrial Drain (70’ x 280’), and a 1,400 square foot plant strip (70’ x 20’).
Bradley Chevrolet has leased these parcels for several years for landscaping and display of vehicles. Some changes were requested to the current agreement to better account for rising costs of the landscaping maintenance.
Under the current agreement and the proposed Agreement, Bradley Chevrolet may use the leased property for the display of vehicles and agrees to maintain the enhanced landscaping and improvements on the leased parcels resulting in the beautification of the Highway 95 corridor.
Under the current agreement the cost to maintain the leased parcels is offset from the lease rate. The rent is adjusted by CPI, but there is no mechanism to adjust the maintenance costs for the landscaping. After analysis, it was determined that the current maintenance costs exceed the offset established in the current agreement. To remedy this discrepancy, it is proposed to have a fixed lease rate and fixed maintenance offset.
The proposed Agreement has a term of twenty (20) years with an option to renew for an additional ten (10) years. Bradley Chevrolet performs all maintenance of the leased parcels. The proposed monthly rental amount is $514.77, which takes into consideration the maintenance costs mentioned above.
COMMUNITY IMPACT:
Supporting the beneficial use of City property and the beautification of the Highway 95 corridor.
FISCAL IMPACT:
Monthly rent in the amount of $514.77.
ATTACHMENTS:
Landscaping Agreement and Ground Lease
POSSIBLE MOTION:Recommended Action
I move to approve the Landscaping Agreement and Ground Lease with Bradley Chevrolet, Inc.
I move to not approve the Landscaping Agreement and Ground Lease with Bradley Chevrolet, Inc.