ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve a LEASE AGREEMENT with ADAMS OUTDOOR ADVERTISING for 6500 N. KNOXVILLE AVE and to Authorize the City Manager to Execute the Necessary Documents (4th District).
Body
BACKGROUND: Adams Outdoor Advertising (Adams) has leased parcels for billboards from the City since 1989. The arrangement started as a lawsuit settlement with four parcels being leased to Adams. Attached is a table and below is a narrative of the City's lease history with Adams. Adams is seeking to lease (see attached) a parcel at 6500 N. Knoxville for an additional five (5) years starting at $5,031.47 with annual increases based on the Consumer Price Index. The prior lease at 6500 N. Knoxville expired on 7/31/2014 and Adams made a payment of $4,884.92 back in July 2014 that extended their lease to 7/31/2015.
On August 24, 1989, a legal settlement was reached granting Adams a ten-year lease at four locations at no cost. A rider was included in the settlement allowing Adams to renew their leases for an additional five years at fair market value. On August 10, 1999, Adams invoked the rider and renewed their leases for an additional five years. On August 6, 2004 the initial ten-year lease and additional five-year rider expired thereby ending the City's obligation under the settlement agreement.
On November 2, 2004, Council approved a five year lease with Adams for three leases on Knoxville and the termination of 502 SW Jefferson since ownership of that property was transferred to another party. On July 14, 2009, Council approved another five year lease with Adams for the same three leases on Knoxville. On June 14, 2011 several leases were renegotiated and a new, two-sided, digital sign was installed by Adams at 6000 N. Knoxville. The lease for 6000 N. Knoxville expires 12/31/2021. This resulted in the removal of five static signs by terminating the lease at 5750 N. Knoxville, and the terminatio...
Click here for full text