Created on 12/05/2013

Agenda Item # 2

Columbus Consolidated Government

Council Meeting

12/10/2013

Agenda Report # 56

TO: Mayor and Council

SUBJECT: Land Lease Bay Avenue Property

INITIATED BY: David Arrington, Deputy City Manager

Recommendation: Authorize the City Manager to execute a land lease agreement with UpTown Whitewater Management, LLC for property located at the intersection of Bay Avenue and 11th Street for the purpose of developing and operating a recreational venue.

Background: With the development of the Chattahoochee River Park there is interest in providing additional recreational activities on the riverfront. Currently there are plans by private parties to develop the Soldier Memorial Walk and the Childrens Water Fountain Plaza in Woodruff Park. UpTown Columbus has expressed an interest in developing a zip-line attraction which will extend over the Chattahoochee River terminating in Phenix City. The attraction will also include an aerial course on the Alabama side along with a short zip line. This attraction is very popular in other cities and the river crossing has the potential to be an extremely exciting attraction for visitors to Columbus. River front property on the Georgia side of the river near the last rapids of the Chattahoochee River Park is limited due to underground utilities and commercial developments.

Analysis: The proposed land lease would be for an area on the southwest corner of 11th St. and Bay Avenue. The location is approximately one quarter of an acre and is not suitable for most other developments due to underground utility conflicts and the dimensions of the property. Installation of the zip-line attraction is expected to require a capital investment of approximately $400,000. The initial estimates for the first year of operation is 5,000 participants but the numbers could be higher. The initial projections for Whitewater were for 6,000-10,000 the first year and the attraction finished the season with over 16,000. The proposed lease payments will be structured in a revenue sharing agreement with an escalator approach. This type of agreement will provide for the maximum return for the taxpayer based on the success of the business. The same agreement will be considered by the Phenix City Council in the near future and will contain the same terms and conditions as the Columbus agreement. Listed below are the relevant terms to be included in the lease agreement.

Procurement and oversight of the zip-line operation will be the responsibility of UpTown Whitewater Management LLC. UPM shall insure that all activities are in accordance with generally accepted standards for zip-line operations.
Uptown Whitewater Management LLC shall require any operator, sub-leasee, contractor, or vendor operating on the property to provide general public liability insurance coverage in an amount not less than $1,000,000 and the City shall be named as an additional insured in all such policies. In the absence of such coverage the leasee will be responsible for providing the same insurance coverage or indemnifying Columbus, Georgia for any and all claims for injury or death which may arise from activities on the property.
Hours of Operation - Will be determined by the operator.
Permitting - UCI will be responsible for insuring all necessary permits are obtained to construct and operate the attraction across the Chattahoochee River.
Terms - The initial lease period will be for 10 years with the option to renew if agreed upon by both parties for an additional 10 year period. The lease fee arrangement will be renegotiated after the first five (5) years of operations.
Share Revenue Agreement - The City shall receive a lease fee in the amount of 2% of all zip-line revenues. The lease will increase to 3% after gross revenues exceed $400,000 in a calendar year and 4% after gross revenues exceed $600,000 in a calendar year. An annual review of the operators fiscal year audited financial statements will be conducted by the City Finance Department.
UCI will be responsible for maintaining the grounds and facilities in a business like appearance as determined by the City of Columbus.
UCI will coordinate with Columbus Fire and EMS Department on safety and rescue procedures for the attraction and will provide access to the facilities for training at a minimum of two times per year.

Financial Considerations: The lease agreement will provide for a shared revenue lease fee schedule. The City will not incur a cost as a result of the land lease.

Projected Annual Fiscal Impact Statement: The lease agreement will provide a positive revenue stream for the City. Anticipated revenues for the initial calendar year are $4,000.

Legal Considerations: Council must approve all real estate transactions.

Recommendations/ Actions: Authorize the City Manager to execute a land lease agreement with UpTown Whitewater Management LLC for property located at the intersection of Bay Avenue and 11th Street for the purpose of developing and operating a recreational venue.

Bay Avenue Land Lease.pdf

A RESOLUTION

NO. _____

A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LAND LEASE WITH UPTOWN WHITEWATER MANAGEMENT LLC, FOR PROPERTY LOCATED ON BAY AVENUE.

WHEREAS,

the City owns property on Bay Avenue that is uniquely positioned to serve as a site to operate a zip-line recreational facility; and,

WHEREAS, the property has limited capacity for most other commercial activities due to utility conflicts and dimensions of the property; and,

WHEREAS, the development of a zip-line business on the riverfront would be a popular attraction for visitors to the riverfront and would compliment the Whitewater venue; and,

WHEREAS, UpTown Whitewater Management LLC has expressed an interest in developing this project and soliciting the capital investment necessary to bring the recreational venue to reality; and,

WHEREAS, the City considers it advantageous to promote further development on the riverfront and the use of City property for this purpose is in the public good; and,

WHEREAS, the City desires to enter into a revenue sharing lease agreement with Uptown Whitewater Management LLC for a period of 10 years with an option to renew upon agreement of both parties and for the shared revenue lease fee schedule to be renegotiated after the first five years of operation.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to enter into a land lease agreement with UpTown Whitewater Management LLC for property on Bay Avenue for the purpose of developing a recreational venue.

___________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________ 2013, and adopted at said meeting by the affirmative vote of
_____________ members of said Council.

Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.

______________________________ ________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor