TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Randy Hume, Transit Director
Tracey Broyles, Budget and Evaluation Director
DATE: February 26, 2018
RE:
Title
Amendment to Greyhound Lease Agreement and Adoption of Budget Ordinance Amendment 2018-19 and Capital Project Ordinance Amendments 2018-43 and 2018-44
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal IV: Fayetteville will be a highly desirable place to live, work and recreate with thriving neighborhoods and a high quality of life for all residents.
Objective D: To develop and maintain public transportation investments with high quality transit and airport services.
Executive Summary:
Council is asked to approve temporary lease terms with Greyhound Lines, Inc. and to adopt Budget Ordinance Amendment (BOA) 2018-19 and Capital Project Ordinance Amendments (CPOA's) 2018-43 and 2018-44 to provide an additional $132,046 for funding of tenant up-fit improvements. The appropriation actions are needed as the project budget for the tenant up-fit improvements is insufficient to award a construction contract to the low bidder.
Background:
City Council approved lease agreement terms with Greyhound Lines, Inc. on November 23, 2015, and the lease was executed on October 9, 2017. This lease enables Greyhound to relocate its Fayetteville terminal operations to the new FAST Transit center. The lease agreement provided for the City to construct improvements to the shell space already constructed, with reimbursement for those tenant up-fit improvements over five years at a 5% interest rate. The lease is for ten years and stipulates that Greyhound will pay the City $5,365 per month in rental fees, a share of operation and maintenance costs and the repayment for the improvements. The rental fees begin escalating annually starting in year five.
Since that time, Greyhound has sold its Person Street facility and must...
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