Title
AUTHORIZATION TO ENTER INTO AN AMENDMENT TO THE GLENDALE WESTGATE LODGING INVESTORS II, LLC GROUND LEASE AGREEMENT
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the Acting City Manager to enter into an amendment to a ground lease agreement with Glendale Westgate Lodging Investors II, LLC (GWLI) for the lease of property located directly east of the Hampton Inn & Suites Phoenix Glendale-Westgate in order to meet the city's contractual obligations...body
Background
The city is required to provide parking spaces at Westgate City Center through its agreements with the Arizona Sports and Tourism Authority (AZSTA) and the Arizona Cardinals. Until full build-out of this Planned Area Development, it has always been the understanding of the parties involved that the city's parking allocation may be relocated as necessary to accommodate construction while maintaining the minimum number of parking spaces required.
Since June 2012, the city has been leasing 516 parking spaces on six acres of property from GWLI to help fulfill the city's parking requirements as it relates to the stadium uses. GWLI intends to develop a portion of the property currently used for parking by the city, leaving approximately 257 spaces available for lease under the same conditions included in the June 2012 agreement. However, should timing for the development be delayed, GWLI agrees to continue to allow the city to use the entire six-acre property for parking under the same terms of the agreement.
Analysis
As a condition of using the property, the city is required to pay rent in an amount equal to the proportional amount of the property tax assessment for the useable space paid by GWLI each tax period from the effective date until either the expiration of the lease or termination of the lease. The property tax valuation is currently estimated at $35,000. Th...
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