| ITEM #: 3. DATE: 06/27/2022 AI #:975 |
 |
CITY COUNCIL ACTION REPORT
| SUBJECT: | LEASE AGREEMENT FOR FIRE STATION 187 (MOBILE) |
| STAFF PRESENTER(S): | Linda Beals, Real Estate Coordinator |
SUMMARY
Approve a new Lease Agreement to the city with ARCUS Private Capital Solutions, LLC, an Arizona limited liability company, for Fire Station 187 (Mobile) located at the northwest corner of 99th Avenue and Maricopa Road.
Recommendation
Approve a Lease Agreement with ARCUS Private Capital Solutions, LLC for Fire Station 187. (Linda Beals, Real Estate Coordinator)
FISCAL IMPACT
Annual rent for the Fire Station 187 site, including the modular facilities and other site improvements is $10.00 per year. The Lease Agreement is for 5 years and the total rental amount due for the five-year period is $50.00. The cost of leasing and maintaining the facility is included as part of the Fire Department’s annual budget.
BACKGROUND AND PREVIOUS ACTIONS
In 2006-2007, the City entered into a Pre-Annexation Development Agreement with Sonoran Valley Management, LLC, a Delaware limited liability company (“SVN”) and annexed approximately 42,780 acres of property in an area that is known as Sonoran Valley, which includes the community of Mobile. In March, 2007, the City negotiated and entered into a Master Development Agreement for the Amaranth development with SVN. This Master Development Agreement, among other items, required the developer to provide a modular facility to be used to house city fire department employees. The fire station modular housing site was constructed shortly after the City and the developer entered into the development agreement.
In 2009 the Fire Station 187 site was sold at the Trustee’s sale. The City then entered into a lease with Amaranth Land, LLC who acquired the property at the Trustee’s sale. This initial lease term was for five years. The property was then purchased by ARCUS Private Capital Solutions, LLC in May, 2011. The lease has been extended several times, with the most recent extension expiring on June 30, 2022.
In 2009 the Fire Station 187 site was sold at the Trustee’s sale. The City then entered into a lease with Amaranth Land, LLC who acquired the property at the Trustee’s sale. This initial lease term was for five years. The property was then purchased by ARCUS Private Capital Solutions, LLC in May, 2011. The lease has been extended several times, with the most recent extension expiring on June 30, 2022.
STAFF ANALYSIS
City staff has negotiated a new five-year lease with ARCUS Private Capital Solutions. The lease terms are generally consistent with the terms of the prior lease. This lease is required in order for the City to continue to provide fire protection service to the Sonoran Valley/Mobile area. Therefore, the city staff is recommending the approval of the Lease Agreement for the Fire Station 187 site.