TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Kecia N. Parker, NCCP, Real Estate Manager
DATE: August 25, 2025
RE:Title
Adopt Resolution Authorizing the City Manager to Lease Space at 472 Hay Street to Subway Real Estate, LLCTitle
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COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal IV - Desirable Place to Live, Work and Recreate
Executive Summary:
The City currently leases a portion of its property located at 472 Hay Street to Subway Real Estate Corp. Subway Real Estate Corp. began leasing the property on September 1, 2000, and has utilized the property as a restaurant space since that time. The original lease has been amended several times but is expiring August 31, 2025. Subway Real Estate, LLC would like to continue leasing this property from the City and would like to enter into a new 3-year Commercial Lease Agreement with the option to renew for 5 additional 1-year periods.
Background:
North Carolina General Statute ?160A-272 authorizes the City to enter leases of up to 10 years upon resolution of the City Council. Subway Real Estate Corp. began leasing approximately 2,200 square feet within the City owned property located at 472 Hay Street on September 1, 2000. The original Commercial Lease Agreement was for 5 years and was amended on September 11, 2002, to allow the assessment of a 4% late fee for all payments received more than 15 days after the due date. Said lease agreement was further amended on August 31, 2005, to extend the term for 5 years and included an option to extend for another 5-year term provided proper notice was given. On July 17, 2015, the lease was further amended to extend the term to August 31, 2018, and provided for two 3-year renewal options with a potential to increase the fixed monthly rent by the property tax values according to City Policy 155.6. In September 2024, the term of the lease was extended for 1 year to all...
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