Title
RESOLUTION NO. R17-54
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF AN AGREEMENT ENTITLED “GROUND LEASE” WITH GLENDALE WESTGATE LODGING INVESTORS II, LLC FOR CERTAIN PARKING RIGHTS.
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into a ground lease agreement with Glendale Westgate Lodging Investors II, LLC (GWLI) for the lease of property located directly east of the Home 2 Suites by Hilton Phoenix Glendale - Westgate (northwest corner of 95th and Maryland Avenues) in order to meet the city’s contractual obligation for parking during stadium events. The term of the agreement is effective through June 30, 2018.
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Background
On November 14, 2016, the city signed a settlement agreement with the Arizona Sports and Tourism Authority (AZSTA) and the Arizona Cardinals, which included requirements for parking for stadium events. Until new parking spaces are completed south of Bethany Home Road between 91st and 95th Avenues, the city agreed to provide parking spaces in the same numbers and in the same locations as were provided during the 2016 NFL season.
Since June 2012, the city has been leasing parking spaces on all or a portion of six acres of property from GWLI to help fulfill the city’s parking requirements as it relates to the stadium uses. In 2016-17, approximately 257 spaces were leased from GWLI to fulfill the city’s contractual obligations for 15 events.
Analysis
As a condition of using the property, the city will pay rent in an amount of $20,000, paid in two equal installments, for access to the property for up to 15 events. The rental amount translates to approximately $5.19 per space per event, and is lower than other options that have been used in the past on an individual event basis.
Continued use of this property is necessary to meet the parking obligations required of the city. Additionally, this parking location is included in the city’s current traffic management plan for large stadium events and its use will allow for seamless implementation of traffic control and guidance for guests for the 2017 football season and other events.
Previous Related Council Action
On November 14, 2016, City Council authorized entering into a settlement agreement with the AZSTA and the Arizona Cardinals to define parking locations and improvements as well as other transportation related improvements for events at the University of Phoenix Stadium starting in the fall of 2018.
On April 14, 2015, City Council authorized entering into a parking license agreement with GWLI for use of up to 516 parking spaces on six acres of property pending potential future development. A minimum of 257 spaces would be available for city use regardless of development conditions.
On June 12, 2012, City Council authorized entering into a ground lease agreement with GWLI for the use of approximately six acres of property with 516 improved parking spaces to be used for parking at up to 15 events.
On September 28, 2004, City Council adopted a resolution authorizing the entering into of a Memorandum of Agreement with the Arizona Cardinals and the AZSTA for a multiuse stadium and related improvements.
On August 15, 2005, City Council authorized entering into an amendment to the Parking License and Agreement with Covenants, Conditions and Restrictions with the AZSTA and the Arizona Cardinals to reflect changes in parking ownership.
On May 27, 2003, City Council authorized entering into the Parking License and Agreement with Covenants, Conditions and Restrictions with the AZSTA and the Arizona Cardinals. That agreement was amended on August 15, 2005.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2017-18 Stadium - Transportation Ops. account. Expenditures with GWLI are not to exceed $20,000 annually contingent upon Council budget approval.
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Cost |
Fund-Department-Account |
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$20,000 |
1000-11890-518200, Stadium - Transportation Ops. |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?