TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Randy Hume, Transit Director
DATE: October 9, 2017
RE:
Title
Approval of Greyhound Lease Agreement for the FAST Transit Center
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective D: To develop and maintain public transportation investments with high quality transit and airport services
Executive Summary:
In November 2015, City Council approved the terms of a lease with Greyhound Lines to lease portions of the new multimodal transit center being constructed at 505 Franklin Street. During the course of negotiating the actual lease agreement, Greyhound determined the need to revise the terms previously approved by City Council due to changes in their operations.
The final agreement has been signed by Greyhound and ready for the City to execute. The revisions include: 1) a reduction in the monthly rental from $5,655 to $5,365 per month; and 2) a reduction in Greyhound's share of common area maintenance, security and utility expenses from10.5% to 9.0%. Greyhound still will pay 100% of these expenses during late nights and on those days that FAST is not operating.
The monthly rent is based on a rate of $26.80 per square foot, plus a share of the costs to construct the customer waiting areas and bus bays. The expense share is based on the total number of bus trips entering the facility. In addition, Greyhound modified the design of their space so Greyhound can operate during late night hours without keeping the large waiting areas in the building open. Federal Transit Administration (FTA) has approved the lease as "incidental use" which is required since grant funds have been used to build the new center.
Background:
FAST is constructing a new multimodal transit center to replace a temporary transfer site it has been using since 2003. After initially dec...
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