HomeMy WebLinkAbout~Master - Three-year Lease Agreement for the Welch Parking Lot T RESOLUTION NO. 19-303
RESOLUTION APPROVING A THREE-YEAR LEASE AGREEMENT FOR THE
WELCH PARKING LOT T
FOR THE CITY OF AMES,IOWA
WHEREAS, on May 22, 2018, City Council approved a one-year extension to the lease of
the lot located at 209 Welch Avenue (known as the Welch Avenue Campustown Lot T), which is
owned by Green Book LLC (Pizza Pit); and,
WHEREAS, Welch Lot T contains 29 spaces, including ten rented and 19 metered spaces;
and,
WHEREAS,the City receives revenue from this lot through the leasing of the rental spaces
and from the revenue from the meters; and,
WHEREAS, the current lease expired at the end of May 2019, but has voluntarily been
extended by the lessor; and,
WHEREAS, the owner of the property has agreed to a new three-year lease, keeping the
majority of terms the same, only asking that the previous annual lease amount be increased by 5%
(the prior amount was $15,142.05, and the new rate would be $15,900 per year and would remain
the same for all three years of the lease); and,
WHEREAS, the lease rate that the Pizza Pit pays for their four reserved stalls will also
increase by 5%to $36.75/stall/month equalling $1,764 annually; and,
WHEREAS, the Lease Agreement also includes an option for an additional three-year
extension,and ifthe City chooses to enter into this extension,the new rate would increase to$16,950
for each of the additional three years; and,
WHEREAS, the City will pay 63% of the taxes on the value of the land only, which based
on the most current tax information (2017), equates to approximately 40.3% of the total annual
property taxes that are estimated to be $7,455 in the first year of the lease; and,
WHEREAS, the provision has been included in all previous lease agreements but has been
updated to more accurately reflect current conditions as compared to 1994 when the lease originated;
and,
WHEREAS,the expense for the City's portion of the taxes and annual lease rate is budgeted
from the Parking Fund; and,
WHEREAS,the Agreement allows either party to cancel this agreement with 90-day notice.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the three-year Lease Agreement for the Welch Parking Lot T at the rate of$15,900 per year,for
three years, and paying 63% of the annual property taxes, is hereby approved.
ADOPTED THIS 25t''day of June, 2019.
Diane . Voss, City Clerk John A. Haila, Mayor
Introduced by: Corrieri
Seconded by: Gartin
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 25t' day of June, 2019.