Discussion and possible action to authorize (a) the City to enter into a 90-day short-term lease agreement with the current tenants residing at 8344 West Washington Street, in Apartments #2 and #3 (APN 142-41-017A), and (b) a budget amendment in the amount of $2,220 from Contingency to the Half Cent Sales Tax Fund for short-term utility costs.

February 10, 2026, Council approved the acquisition of the 6,749 square-foot property located at 8344 West Washington Street in Downtown Peoria.  Two of the three apartments on the property are currently still occupied by tenants who have been unable to find replacement housing in the time provided by the seller.  Staff recommend entering into a 90-day short-term lease agreement with the two remaining tenants to finalize their relocation.

The proposed lease terms include:

• A 90-day lease term
• Rent due to the City at the beginning of each month
• Continuation of existing terms and conditions are outlined in the attached Lease Agreements (Exhibits A and B)

This short-term lease provides clear occupancy terms, ensures accountability, and allows the City flexibility as future plans for the property are determined.

Staff recommend that the Mayor and City Council authorize (a) the City to enter into a 90-day short-term lease agreement with the two remaining tenants and authorize the City Manager to execute all documents necessary to implement the lease, and (b) authorize a budget amendment in the amount of $2,220 from Contingency to the Half Cent Sales Tax Fund for short-term utility costs.

Lease payments up to $2,220 received during the 90-day term will be deposited reimbursing the ½-cent sales tax fund used to acquire the property. Utility expenses up to $2,220 will be expensed from the Half Cent Sales Tax Fund for short-term utility costs.