The City entered into a Land Lease with Tenenbaum, Inc. in 2019 for use of a 22-acre site located next to the new Arena. The City is developing this leasehold interest with a 2,000 space surface parking lot. The original lease term was for 10 years and commenced in 2020. The City and Tenenbaum, Inc. have negotiated a lease extension of up to twenty-years (option for a ten-year lease and then two, five-year lease extensions) that can extend the lease until the year 2050. The lease extensions will provide time for the City to recapture its investment in the parking lot construction. The lease rate will increase 3% per year, except every ten years, it will increase at a rate of 5% beginning at the end of this year. The parties have agreed on the basic business terms and are finalizing the lease document. 

Approval