| ITEM #: 6. DATE: 08/29/2022 AI #:1046 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | LEASE AGREEMENT FOR OPERATION OF BMX TRACK |
| STAFF PRESENTER(S): | Linda Beals, Real Estate Coordinator |
SUMMARY
Approve a new Lease Agreement with AZ Pro Trac, an Arizona corporation, for the continued operation of the BMX Track in the City of Goodyear.
Recommendation
Approve a Lease Agreement with AZ Pro Trac for the operation of the BMX Track. (Linda Beals, Real Estate Coordinator)
FISCAL IMPACT
There will be no direct fiscal impact on the City in the fiscal year 2023 or in future years related to the approval of this lease. The City receives its consideration through the public benefit of the facility’s operation as outlined in the lease and the operation’s costs that the City would otherwise incur if the property was not leased, and the City had to maintain the property.
BACKGROUND AND PREVIOUS ACTIONS
The City has leased an approximate 8-acre site southwest of MC85 and Estrella Parkway, adjacent to the Roscoe Dog Park, for the operation of a non-motorized bicycle BMX track since May of 2004. The current lessee has been leasing the site since 2011. The City’s current lease with AZ Pro Trac, an Arizona corporation is set to expire on December 31, 2022. The City has negotiated a new Lease Agreement with AZ Pro Trac to commence on January 1, 2023 through December 31, 2025 with the option to renew for up to two additional one-year terms, through December 31, 2027. These optional renewals must be requested by the Lessee, but the approval is at the sole discretion of the City. This new Lease Agreement provides language confirming the termination of the previous lease on December 31, 2022.
STAFF ANALYSIS
AZ Pro Trac has operated and managed the BMX track since December of 2011. The track is open to the public for events, regional and national competitions, practices, and other operations that benefit our community with discounts provided to Goodyear residents. The current lessee works closely with the City’s Parks and Recreation Department staff to help promote local public use of the facility and the facility continues to provide a recreational opportunity for local riders.
Although the current lease does not expire until December 31, 2022, AZ Pro Trac and the City would like to proactively enter into a new lease so it will be approved and in place when the existing lease expires. AZ Pro Trac understands the Lease Agreement allows the City to terminate the Agreement, for any reason, upon thirty (30) days written notice and is willing to lease the property under these terms. The Lessee’s obligations in the new Lease Agreement remain are generally consistent with the terms of the previous Lease Agreement.
It is in the best interests of the City to continue to allow the operation of the BMX track as it is beneficial to the residents of the City. Goodyear residents receive a discount on fees for services and facility use and the City is currently not able to provide this type of resource to our residents. Staff recommends the approval of the new Lease Agreement with AZ Pro Trac.
Although the current lease does not expire until December 31, 2022, AZ Pro Trac and the City would like to proactively enter into a new lease so it will be approved and in place when the existing lease expires. AZ Pro Trac understands the Lease Agreement allows the City to terminate the Agreement, for any reason, upon thirty (30) days written notice and is willing to lease the property under these terms. The Lessee’s obligations in the new Lease Agreement remain are generally consistent with the terms of the previous Lease Agreement.
It is in the best interests of the City to continue to allow the operation of the BMX track as it is beneficial to the residents of the City. Goodyear residents receive a discount on fees for services and facility use and the City is currently not able to provide this type of resource to our residents. Staff recommends the approval of the new Lease Agreement with AZ Pro Trac.
