TITLE
The Mayor and City Council shall discuss and possibly take action on approval of amending the existing lease agreement with Revilo, L.L.C. and of a budgetary transfer in the amount of $12,094.84 from General Fund, General Government, Contingency (10010000-99000) to General Fund, Public Works Facilities, Rental of Land and Buildings (10055158-54441). Discussion and Action.
AGENDA ITEM DESCRIPTION
On March 20, 2012, the Maricopa City Council approved a Lease Agreement with Revilo, L.L.C. for the leasing of approximately 5.43 acres of vacant property located at 45145 W. Madison Avenue. Pursuant to Section 21 of the Lease, the Lease may be modified by written agreement signed by both parties. Additionally, Section 8.0 of the lease states "If during the period of this Lease, the Premises are reclassified for tax purposes, the Tenant and Landlord agree to renegotiate the terms of this Lease." Earlier this year Pinal County reclassified the property causing an increase in rent of $12,094.08 per year. The parties now desire to modify the Lease to account for this increased cost. The agreement will increase the monthly payment to from $4,000 to $5,007.84.
The modification is necessary, due to the Public Works facility and Police Volunteer building still remaining on the property. Both operations are expected to remain on the property until the Public Works/City and Fire Department Fleet building is constructed.
This item will be presented by Public Works Director William P. Fay.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council approve amending the existing lease agreement with Revilo, L.L.C. and of a budgetary transfer in the amount of $12,094.84 from General Fund, General Government, Contingency (10010000-99000) to General Fund, Public Works Facilities, Rental of Land and Buildings (10055158-54441).