File #: 17-057    Version: 1 Name: Addendum Lease Agreement with SouthwindRAS for Darst Str Property
Type: Agreement Status: Approved
File created: 2/21/2017 In control: City Council
On agenda: 2/28/2017 Final action: 2/28/2017
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)
Indexes: Goal 1 - Financially Sound City , Goal 2 - Safe Peoria, Grow employers and jobs., Have an efficient government., Support sustainability
Attachments: 1. AGMT NO 17-057 Southwind RAS, 2. Addendum to Lease Agreement, 3. Southwind Lease, 4. Darst Str Expansion Exhibit-Southwind RAS
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, 20...

Click here for full text