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8.B.
City Council Meeting - FINAL
Meeting Date:
06/19/2018
From:
Charity Lee, Real Estate Manager

Information

TITLE:

Consideration and Approval of Contract: Third Amendment to Commercial Lease by and between the City of Flagstaff and the Southside Community Association Inc., an Arizona non-profit corporation.

STAFF RECOMMENDED ACTION:

Approve the Third Amendment to Commercial Lease by and between the City of Flagstaff (Lessor) and the Southside Community Association Inc., an Arizona non-profit corporation (Lessee) for the use of the Murdoch Building at 203 E. Brannen Avenue, City of Flagstaff, Arizona.

Executive Summary:

The Murdoch Building is in an area of downtown Flagstaff known as the Southside. City is in the process of developing a Southside Neighborhood Plan (Plan). The City is asking the local community for their ideas and thoughts on potential future uses of the Murdoch Building.  City staff will present potential future uses to the Murdoch Building to Council for consideration once the Plan has been completed. Staff is recommending an extension of the existing lease for two years with an option to extend for an additional year to allow the Southside Neighborhood Plan to be completed.  This will help the City make sure any future long term use of the property will be consistent with the Plan.

Financial Impact:

The Base Rent will be reduced from $599.32 per month to $1.00 per year. In exchange for the reduction in rent,  Lessee will serve as the Property Manager for the building and coordinate activities at the building.  The City will be allowed to use the building for community meetings and events at no charge to the City.  Lessee will pay for all utilities and general maintenance of the building.  Also the reduced rent takes into consideration that the City will reserve the right to terminate the Lease upon at least 180 days written notice.

Policy Impact:

 None

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

Team Flagstaff Strategic Plan: Work in Partnership to Enhance a Safe and Livable Community
  • Community Partnerships Through Civic Engagement and Participation

Has There Been Previous Council Decision on This:

 No

Options and Alternatives:

1. Approve the Third Amendment as drafted.
2. Suggest changes to the Amendment.
3. Do not approve the Amendment and cancel the existing lease.

Background and History:

The City of Flagstaff acquired the “Murdoch Building” in 1967 from the Southern Union Gas Company.  Prior to its use by the gas company, this site was the Dunbar Elementary School—Flagstaff’s segregated school for African Americans from 1926 to 1954.

In 1986 the original school building was removed as part of the realignment of Butler and Clay Avenue. The City rebuilt the facility and designated it the Murdoch Center after Dunbar school principal, Cleo Murdoch. 

The City of Flagstaff and the Southside Community Association entered into a Commercial Lease on July 25, 2007 for the use of the Murdoch Building located at 203 E. Brannen Avenue, Flagstaff, Arizona 86001 as a community center for the City of Flagstaff residence and the southside neighborhood.

The Lease term was extended by a First Amendment dated June 11, 2012 for five years, and then extended by a Second Amendment dated August 21, 2017 for an additional year expiring July 31, 2018.

The City and Southside Community Association desire to extend the lease agreement for two years with an option for an additional year to allow for the Southside Neighborhood Plan to be completed which will guide Council on what the future uses of the Murdoch Building.
 

Key Considerations:

The Murdoch Center is the current home to the Southside Community Association. The Southside Community Association and The Murdoch Center serve the Southside neighborhood in Flagstaff, AZ. The Murdoch Center offers a large meeting hall for clubs, organizations, city/neighborhood meetings, as well as private parties. The Murdoch Center is an inter-generational and multicultural center reflecting the different cultures represented in the southside. The center's mission is to maintain the legacy and diverse cultural history of the southside neighborhood, through activities and events that build a sense of community.

 

Community Benefits and Considerations:

 None

Community Involvement:

Community center for the southside neighborhood and meeting space for the City of Flagstaff and additional organizations.

Expanded Options and Alternatives:

Staff will be holding community meetings during the Southside Neighborhood Plan to get feedback from the neighborhood on the Murdoch Building to present to Council for future considerations on uses for the facility.

 

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