To

Mayor and Council

Subject

Land Lease Bay Avenue Property

Initiator

David Arrington, Deputy City Manager

Recommendation

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

Approval

Pending

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, dba

Whitewater LLC has expressed an interest in developing a Zip-Line attraction

which will extend over the Chattahoochee River terminating in Phenix City.

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 three quarters 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 the

Zip-Line attraction is expected to require a capital investment of

approximately $400,000. 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 Columbus, Inc, dba Whitewater LLC. UCI shall insure that all

activities are in accordance with generally accepted standards for zip-line

operations.

Uptown Columbus, Inc. dba Whitewater LLC and the operator of the zip-line

attraction will be required 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.

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.

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 $200,000 in each calendar year.

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 fee schedule.

Anticipated revenues for the initial calendar year are $40,000.

Projected Annual Fiscal Impact Statement

The lease agreement will provide a positive revenue stream for the City.

Legal Considerations

Council must approve all real estate transactions.

Recommendations/ Actions

Authorize the City Manager to execute a land lease agreement with UpTown

Columbus, Inc., dba Whitewater LLC for property located at the intersection of

Bay Avenue and 11th Street for the purpose of developing and operating a

recreational venue.

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