Title
Authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease with Citizens Bank of Pennsylvania, to lease from Citizens Bank of Pennsylvania, certain parcels of ground located at 2208 West Indiana avenue, 2933-53 Croskey street and a portion of 2942-50 North Twenty-second street all in Philadelphia, Pennsylvania, under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. The Commissioner of Public Property, on behalf of the City of Philadelphia, is hereby authorized to enter into a lease with Citizens Bank of Pennsylvania a Pennsylvania chartered bank to lease from Citizens Bank of Pennsylvania, for a period of up to ten (10) years for nominal consideration, certain parcels of ground located at 2208 West Indiana avenue, 2933-53 Croskey street and a portion of 2942-50 North Twenty-second street all in Philadelphia, Pennsylvania, under certain terms and conditions, being more fully set forth in Exhibit "A" to this Ordinance.
SECTION 2. The City Solicitor is hereby authorized to review and to approve the lease and other documents necessary to effectuate this Ordinance, which lease and other documents shall contain such terms and conditions as the City Solicitor shall deem necessary and proper to protect the interest of the City and to carry out the purposes of this Ordinance.
EXHIBIT A
TERMS AND CONDITIONS
22nd & Indiana Parking Lot
Lease Purpose and Background
The City will lease and sublease from Citizens Bank property located on N. 22nd Street in the Allegheny West neighborhood of North Philadelphia to construct a self-service parking lot for the exclusive use of the members, employees and invitees of the North 22nd Street Merchants' Association. After construction is completed, the North 22nd Street Merchants' Association will sublease the entire lot from the City of Philadelphia and pay for its operations, including insurance and maintenance costs. The use of the approximately 58 spaces in the lot at 22nd & Indiana will free-up critical metered street parking for customers of the retail establishments on the corridor. This project is therefore a key to the future success of 22nd Street as a thriving neighborhood commercial corridor. While the Commerce Department will provide capital funding for lot construction, the North 22nd Street Merchants' Association will manage and provide for ongoing operating costs.
Lease/Sub-lease
The City of Philadelphia will lease 2208 W. Indiana Ave from Citizens Bank, which owns this parcel. At the close of construction, the City of Philadelphia will then sublease these properties to the North 22nd Street Merchants' Association.
The City will sub-lease from Citizens Bank a portion of the properties at 2942 N. 22nd St., 2944-2950 N. 22nd St. and 2933-53 Croskey Street, which Citizens Bank leases on a long-term basis. The sub-lease covers only of a portion of the area leased by the bank area because the Citizens Bank building is located on those premises, and will be excluded from the parking lot and sub-lease. At the close of construction, the City of Philadelphia will then sublease these properties to the North 22nd Street Merchants' Association.
Other Terms and Conditions for Lease/Sublease
Term: 5 years, possibly with 1 option to renew for 10 years total
Consideration: $1
Operations
Under a separate agreement, the North 22nd Street Merchants' Association will sublease the entire lot from the City of Philadelphia and pay for its operations, including insurance and maintenance costs, and will agree to fully indemnify the City for any claim arising in connection with the parking lot. The Association will be able to defer these costs by selling monthly parking passes to its members for use of the lot.