Good morning.

Today is what is today.

Today is Tuesday, September 15th.

We are calling to order the committee of development planning sustainability.

Oh, I'm sorry, please call the roll.

Good morning, Mr.

Chairman, members of the committee.

Or actually have them introduce themselves.

So this ordinance is a request by the department to enter into a lease with Playhouse Square Foundation, and also an option to purchase for the parking lot, uh City of Cleveland owned parking lot under CD jurisdiction at East 13th and Chester, adjacent to the former Greyhound bus station.

The request is to enter into a 10-year lease with Playhouse Square Foundation and then during the course of that time uh if they do choose to purchase the lot, the option agreement will would allow us to sell the lot to them.

Um just a little background on the uh parking lot itself as I uh pull up the uh first picture here.

The uh lot is adjacent to the former Greyhound uh station, those two parcels highlighted in red.

Uh the Greyhound station is to the right of that.

You can still see some of the buses pulled into the terminal there.

It's an old picture.

Um we previously uh leased the lot for the past nine years to another entity uh with the hopes of getting some type of development there.

The lease came to an end May 31st of this year.

So at that time we uh chose to change directions, the city did and and go with Playhouse Square Foundation uh as the new less C.

So uh the hopes at the time were to have this uh pass just before the summer, but it's you know kind of lingered, and so we're here today.

Uh as I go into the other the to the next two pictures, I do want you to take uh note here the the uh density of the parking parking in that area, excuse me.

Um this is an old picture and this is pre-COVID.

So uh as we uh move beyond COVID, uh you can see that uh as uh office patterns changed and and uh population downtown, uh there was uh fewer parking spaces taken in these parking lots around, even still uh this is post-COVID, but uh Greyhound was still operating at the time.

If you were to see the lot today, uh it averages uh usually anywhere between 10 and 25 cars uh in the lot.

Because we did not enter into this lease originally with Playhouse Square as we intended when when the uh prior lease expired on May 31st.

We have uh begun a license, excuse me, a license with Playhouse Square.

Uh so they're currently under license, but um the lease would allow us to uh enter into a longer term agreement with them.

It makes it a natural for us uh to enter into this with Playhouse Square because they have recently uh acquired the the uh former Greyhound station uh to the right of the parking lot and also some other real estate on the block.

So uh Playhouse Square as an entity has a history of uh development, uh particularly that which is uh complicated in nature and has um become a premier entertainment district throughout the country.

So it's uh you know, so the city is uh excited about partnering with them and leasing this lot to them.

So the lease would commence um once it is actually put together originally.

This was to be uh started on June 1st, but again, because this legislation uh has been out there for some time, the a license is in place and the lease would commence once uh completed uh and the um the option agreement would also have the same term 10 years as the lease.

Uh if Playhouse Square does exercise its right to purchase the lot, the the lot would be purchased with a fair market appraisal, uh which was done, and that uh cost is 1.6 million.

The parking lot itself would be leased for 25,000 a year, and uh uh see this here.

And so as far as um the type of services that Playhouse Square would provide on the lot, they would uh provide the security, maintenance, any removal of debris, snow removal, things of that nature, striping of the lots and uh things that that become necessary under the uh lease as well as insuring the lot.

I think I've gone through all this.

If uh we do uh if Playhouse Square does exercise this option to acquire the lot, uh they will have to uh adhere to all city policies and go through departmental procedures, uh planning, um permitting things of that nature, and enter into uh community benefits agreement as well.

So that brings us to the conclusion of this presentation.

I don't know if um you want to add anything.

No, yes, no?

Okay.

Um thank you.

I'm sorry, is a commissioner.

Um Director Green.

Uh well, just change.

And I I prefer uh uh Nate's uh uh the guy that gets things done.

Okay.

I just want to uh clarify one thing.

So um so the cost would be 1.6 million should they exercise the option to buy.

Um the uh lease itself is $25,000 a year, they will continue to pay property taxes on the undeveloped land.

Um they pay $10,000 for the lease option.

Um over the course of 10 years, that would bring a total of $1.85 million and some change uh to the city.

Um do you know what the current revenue from this parking lot is for the city under the previous lease with the parking lot operator?

Uh to the chair, yes.

Uh the the previous agreement was for um the uh the lessee to pay uh they paid $10,000 for an option agreement as far as the purchase the purchase price had they exercised that option, that would the lot would have to have been appraised.

So it probably would have brought us uh close to this amount, but it was a little less uh because this was uh a lease that that carried us over nine years.

Uh it was renewed during COVID and uh for another four years.

Um but uh they were paying a monthly fee and paying the taxes on the lot, roughly about uh uh twenty-one thousand a year, something like that.

So this is a slight increase uh with inflation and time um over the previous tenant?

To the chair, yes.

Okay.