TITLE
The Mayor and City Council shall discuss and take action to approve an Amendment to and Restatement of the Development, Operating and Maintenance Lease Agreement (CON 21-10) between the City of Maricopa, an Arizona municipal corporation, and PHX Surf, LLC, an Arizona limited liability company, for approximately 4.19 acres, generally located at the southwest corner of SR 238 and N. Loma Road. Discussion and Action.
AGENDA ITEM DESCRIPTION
The City and PHX Surf, LLC originally entered into a lease agreement on May 18, 2021, related to 12 acres of real property described therein and also known at that time as Pinal County Assessor 510-17-003. The City and PHX Surf, LLC now desire to change the location and amount of Leased Property as is legally described in Exhibit “A”, attached hereto, and amend, supersede and replace in their entirety the terms of the Original Lease as set forth in this Lease.
The City Council had found that the public interest would be benefited by leasing the Leased Property to PHX Surf, LLC for the construction, operation and maintenance of a First-Class surfing facility along with play pools and related amenities to offer food, beverage, retail and outdoor recreational elements. It is the intent of PHX Surf, LLC to develop a First-Class facility as described herein on the Leased Property.
The term of this Lease shall be for fifty (50) years, commencing on the Effective Date, and ending fifty (50) years therefrom. Provided that PHX Surf, LLC is not then in default of this Lease, PHX Surf, LLC may extend the term of the Lease for up to five (5) separate additional ten (10) year terms (each an “Extended Term”). Any Extended Term shall be jointly referred to herein as the “Lease Term” or “Term.” If PHX Surf, LLC desires to extend the Lease Term, it shall give City written notice at least sixty (60) days, but not more than one (1) year, prior to the expiration of the then-current Term. Each Extended Term shall be upon the same terms and conditions as this Lease. The payment of Base Rent shall commence on the Effective Date and shall be $1,427.98 per month. On each anniversary of the Effective Date beginning in 2031, the Base Rent shall be increased by the percentage increase in the Consumer Price Index (CPI-U) for the City of Phoenix, as published by the Bureau of Labor Statistics over the 12-month period immediately preceding the anniversary date.
PRESENTER
This item will be presented by Josh Bowman, Chief Strategy Officer.
STAFF RECOMMENDATION
Staff recommends approval of the Amendment to and Restatement of the Development, Operating and Maintenance Lease Agreement.