Consideration and Approval of a Consent, Assignment and Assumption of Obligations of Ground Lease:  No. 130132 - City property located at 4 South San Francisco Street. (Assignment from Thomas William Moffitt III Revocable Trust to Thomas William Moffitt IV Revocable Trust)

Thomas William Moffitt III Revocable Trust entered into the lease agreement with The Atchison, Topeka and Santa Fe Railway Company in 1983, contract number 130132 for a ground lease located at 4 South San Francisco St.  Thomas William Moffitt III Revocable Trust owned the improvements on the land, recently the improvements have transferred ownership to Thomas William Moffitt IV Revocable Trust.  Recommend approving the assignment of the lease to Thomas William Moffitt IV Revocable Trust.

The City currently receives $18,357.38 annual for the ground lease.  The lease is adjusted annually based on the Consumer Price Index.  The lease terms are not being amended at this time.  The assignment is the only change to the lease.

No

Option 1: Approve the assignment of the lease to Thomas Moffitt IV Revocable Trust.  The improvements on the land are currently vested in Thomas Moffitt IV Revocable Trust. 
Option 2: Deny the assignment of the lease and continue the lease "AS IS". This option is not preferable since the ownership interest of the improvements vests with Thomas Moffitt IV Revocable Trust.  The current lessee Thomas Moffitt III Trust no longer has ownership interest in the buildings.

The original lease was dated May 20th 1968 between The Atchison, Topeka and Santa Fe Railway Company a Kansas corporation and Lee Hutchison and Edith Crozier. Contract No. 130132.  August 29, 1983 Thomas William Moffitt III purchased the leasehold interest and improvements from Lee Hutchision and Edith Crozier and the ground lease was assigned to Thomas William Moffitt III Trustee of the Thomas William Moffitt III Revocable Trust. The City of Flagstaff purchased the land  located at 4 S. San Francisco St. in 2001 for the Rio De Flag Flood Control Project. In 2015 the ownership interest of the improvements transferred from Thomas William Moffitt III Revocable Trust to Thomas William Moffitt IV Revocable Trust. The assignment transfers the leasehold interest to Thomas William Moffitt IV Revocable Trust, the vested owner of the improvements on the land.

Inform