ACTION REQUESTED:
Title
Communication from the City Manager and Director of Public Works with a Request to Authorize the City Manager to Sign a Two-Year Lease ADDENDUM AGREEMENT Effective February 28, 2017, for a Two-Year Term and with the Provision for Three (3), One-Year Extensions to February 28, 2022, between the City of Peoria and SOUTHWIND RAS, LLC for Use of a Portion of the City-Owned Property on DARST STREET for the Operation of an ASPHALT SHINGLE RECYCLING FACILITY (Amends 11-068). (Council District 1)
Body
BACKGROUND: The City entered into a Commercial Lease Agreement with Southwind RAS, LLC in 2011 (Council Item No. 11-068) to allow Southwind to utilize a portion of the city’s Darst Street property for the operation of an asphalt shingle recycling facility. The Southwind operation removes the objectionable materials (nails, wood, etc.) from the shingles, pulverizes them, and prepares them for reuse in hot mix asphalt. The city’s Darst Street facility is excess property that is currently underutilized.
Under the original lease, Southwind utilized 4.6 acres of the property at $500/month plus $2/ton for every ton sold out of the facility. Southwind generated approximately 9,000 tons of shingle product over the past 6 years. The attached lease Addendum renews the same terms and conditions of the original Lease Agreement and includes allowing Southwind an additional 4.4 acres to expand their operation for a fee of an additional $500/month beginning March 15, 2017.
The attached Lease Addendum Agreement has an initial Lease term of two (2) years beginning February 28, 2017, with three (3) one (1) year renewals, which renewal term expires on February 28, 2022.
Attachments to this Communication include the Lease Addendum Agreement, original Commercial Lease Agreement #11-068, and a drawing of the proposed operation expansion at Darst Street.
FINANCIAL IMPACT: There will be no costs to the City. Annual revenue of $12,000+ to February 28, 2022.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: Southwind RAS, LLC would commence additional improvements to allow for their expansion of operations at the Darst Street facility, at an annual income to the City of Peoria of $12,000+.
IMPACT IF DENIED: Southwind RAS, LLC would not expand operations at this location.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
2. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Support sustainability.
2. Grow employers and jobs.
3. Have an efficient government.
DEPARTMENT: Public Works