TO: Mayor and Members of City Council
THRU: Karen M. McDonald, City Attorney
FROM: Kecia Parker, NCCP, Real Estate Manager
DATE: June 26, 2023
RE:
Title
Approve Proposal Bid and Lease from DK Enterprise Inc. to Lease Parking Spaces in the Franklin Street Parking Deck and Downtown Area
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy
Executive Summary:
Council approved moving forward with the NCGS provided process to advertise an offer from DK Enterprise Inc. to lease 20 parking spaces for a 15-year term, with two 15 year options to renew at the April 24, 2023 City Council Meeting. Fifteen of the parking spaces were to be located in the Franklin Street Parking Deck, and five parking spaces would be located within a one block radius of the proposed Kress Lofts private development, to be located at 111 Maxwell Street. The proposed offer was advertised in the Fayetteville Observer on May 8, 2023 with bids being accepted until May 18, 2023. No upset bids were submitted.
Background:
DK Enterprise Inc. is the owner of 111 Maxwell Street and proposes to develop this property as residential lofts/condominiums. Related to this private development, DK Enterprise Inc. submitted a long-term offer to lease 20 parking spaces from the City. Fifteen of the parking spaces would be located in the Franklin Street Parking Deck, and five parking spaces would be located within a one block radius of 111 Maxwell Street. The term of the lease will be 15 years, with two 15 year options to renew. The offer included an "Automatic Extension of Term" clause that would automatically extend the lease for five years at the conclusion of the first three 15 year terms, unless either party notifies, in writing, the other of the party's intent to terminate no later than 60 days prior to the end of the third 15-year term.
The offer stated that DK Enterprise I...
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