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.
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
Attachments