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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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City Administration |
☐ Active & Appealing |
☒ Resolution |
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☐ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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N/A |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Lease Agreement: 1610 South Maple Avenue
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SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize the City of Yuma to enter into a 3-year lease agreement with a new tenant at 1610 South Maple Avenue. (City Administration/Attorney) (Jay Simonton/Richard Files)
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STRATEGIC OUTCOME:
This item furthers City Council’s strategic outcome of Safe and Prosperous.
REPORT:
The City of Yuma (“City”) owns real property at 1610 South Maple Avenue (“Premises”) that it leases to First Choice Wireless, LLC (“First Choice Wireless”) for the retail sale of cellular telephones and related equipment. The City has leased the Premises to First Choice Wireless since 2017. On September 7, 2022, City Council adopted Ordinance No. O2022-039 approving the current lease agreement (“Current Lease”) with First Choice Wireless for up to five years. Although not addressed in the Current Lease, the City has permitted First Choice Wireless to host qualified mobile food vendors (“Food Vendors”), one Food Vendor at a time, on the Premises for the past year or so.
First Choice Wireless has an affiliated entity, TAL PHX Holdings, LLC, that wants to lease the Premises for the retail sale of cellular telephones under the same terms as the Current Lease. First Choice Wireless wants to terminate the Current Lease as soon as the City executes a new lease agreement with TAL PHX Holdings, LLC.
The draft lease agreement between the City of Yuma and TAL PHX Holdings, LLC contains substantially identical terms as the Current Lease except it is for a single three-year term and it expressly allows Food Vendors to use the Property under the following conditions:
“Lessee may allow mobile food vendors (“Food Vendors”) to use the Premises provided that each Food Vendor obtains a business license from the City and only one Food Vendor occupies the Premises at a time. Lessee further agrees to indemnify, hold harmless and insure the City against all claims arising from the use of the Premises by Food Vendors under Sections 16 and 28 below. Throughout the term of the Lease, Lessor may at its discretion forbid Food Vendors from using the Premises, limit their hours of operation, or limit seasons of approved use by providing notice of such restrictions to the Lessee, which shall take effect immediately.”
Approval of the attached resolution authorizes the City Administrator to sign the proposed lease on behalf of the City and terminate the existing lease with First Choice Wireless.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
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- |
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
The new lease agreement will maintain existing rental revenues to the City and ensure the productive use of City property.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
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Acting City Administrator: |
Date: |
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John D. Simonton |
04/28/2025 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
04/25/2025 |