Discussion and possible action to approve a Commercial Ground Lease for RV and Boat Storage at the 111th Ave Alignment (“Lease”); and authorize the Mayor, City Attorney and City Clerk to sign and record the Memorandum of Lease Agreement with the Maricopa County Recorder’s Office.

The owner of the parcel just north of Beardsley Road and situated between 112^th and 111^th Avenues (parcel 200-13-002J) is currently processing an application with the Development & Engineering Department to develop an RV and Boat Storage facility.

Given the unusually long and narrow geometry of the parcel, the facility developer, Beardsley Storage, LLC, has requested to use a portion of the 111^th Avenue right-of-way (ROW) for landscaping that would have otherwise been required within the parcel itself and to accommodate access driveways to the property from the 111^th Avenue ROW. Although 111^th Avenue currently contains some existing underground utilities, it is not currently used nor anticipated to be used for vehicular traffic.

The purpose of the Lease is to document the terms and requirements to allow for (1) a portion of the developer's landscaping in the 111th Avenue right-of-way; and (2) construction of a main entrance at Beardsley Road; and (3) construction of an emergency access at Rose Garden Lane; and (3) construction of a wrought iron fence within the 111th Ave right-of-way.

The critical Lease terms are as follows:

1.  The Lease will have a twenty-five (25) year Term with two options to automatically extend the Term for an additional twenty-five (25) years each.

2.  The Lease will automatically terminate when the Base Parcel is no longer used for RV and/or boat storage or upon any change in the approved PAD.

3.  The Lessee will pay Basic Rent in the amount of $15,000.00 over the term of the Lease with 1/75th of the Basic Rent due within ten (10) days of the Commencement Date of the Lease.

4.  Lessee is responsible construction and maintenance of the landscaping, access driveways and fence.

5.         Lessee shall maintain insurance and a Waiver of Subrogation during the term of the Lease.

6.         A Memorandum of Lease Agreement will be executed by the parties and recorded with the Maricopa County Recorder's Office.

Per Zoning case Z19-08, Ordinance 2020-13 was approved by City Council on October 20, 2020, approving the rezoning of this parcel from Suburban Ranch (SR-43) to the Arrowhead RV and Boat Storage Planned Area Development Zoning District.

Subsequently, a Site Plan for the proposed development (SP21-08) was processed through the Planning Department and approved on October 26, 2021.

A.         Approve the Lease to allow this parcel to be developed by allowing the construction of landscaping, access driveways and wrought iron fence within the 111th Avenue right-of-way.

B.         Do not approve the Lease, whereby construction permits would not be issued so that the developer could not construct improvements as planned which would delay the project and make the current layout infeasible.

Staff recommends approval of the Lease and subsequent execution and recordation of the Memorandum of Lease Agreement.

The lease payments will result in $15,000 in lease revenue to the City over the Term of the Lease.