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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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Administration |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Lease: Elevate Southwest
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SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize a two-year lease with an additional three-year option to Yuma Multiversity Campus Corporation, DBA Elevate Southwest, for City-owned property located at 2450 South Madison Avenue. (Administration) (Jay Simonton).
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STRATEGIC OUTCOME:
This lease supports local economic development objectives by fostering entrepreneurship, small business growth, and workforce development which furthers the City Council’s strategic outcome of Connected and Engaged. Additionally, the interim use of the vacant facility activates a City-owned property while advancing the long-term vision for a regional Innovation Hub.
REPORT:
Elevate Southwest (Tenant) has requested to lease City-owned property located at 2450 South Madison Avenue for an initial term of two years with an option to extend the lease for an additional three years. Elevate Southwest intends for this lease to serve as an interim location for operations while plans advance for a future Innovation Hub complex that will provide a permanent facility.
The South Madison Avenue property formerly housed Fire Station No. 3 until 2006, when the new facility was completed at 508 E. 25th Street. YRCS subsequently occupied the property for several years for their radio maintenance operations until 2022. The property has remained vacant since 2022.
Under the proposed lease, the Tenant will pay the City a total of $12,000.00 dollars in rent, $500 per month, over the initial two-year term. If the Tenant exercises its option to extend the lease for an additional three years, the Tenant will pay an additional $36,000.00 dollars in rent, $1,000 per month, over the extension period. In addition, the Tenant agrees to invest a minimum of $25,000.00 dollars in improvements to the property at its own expense. All improvements made to the property shall belong to the City at the termination of the Lease without reimbursement or credit to the Tenant.
Elevate Southwest intends to use the facility primarily for office use and to provide space for entrepreneurial, incubator, and educational programming supporting innovation and business development within the Yuma community.
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: |
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TOTAL |
$ 0.00 |
N/A |
FISCAL IMPACT STATEMENT:
The new lease agreement will bring new rental revenues to the City and increase the value and future potential of the Property for the City.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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Jennifer Reichelt for John D. Simonton |
10/27/2025 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
10/26/2025 |