Title
Lease of 19000 Rialto, Melvindale, MI
Body
Agenda of: February 24, 2021
Item No.: 2021-049
Amount: $2,671,737
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: January 25, 2021
RE: Lease of 19000 Rialto, Melvindale, MI
MOTION
Upon recommendation and opinion of Randal M. Brown, General Counsel, the Board of Directors (Board) for the Great Lakes Water Authority (GLWA):
(1) approves the lease of 19000 Rialto, Melvindale, MI (the Rialto Facility) from Family Associates LLC; and
(2) authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote, including the execution of the Lease Agreement.
JUSTIFICATION
With the anticipated sale of 235 McKinstry, GLWA needs to acquire near storage space for large equipment, which primarily supports the Water Resource Recovery Facility (WRRF). GLWA considered storage locations in the City of Detroit, however, lease rates have increased with auto suppliers and logistics companies locating in Detroit to $7-8 psf and higher. Working with GLWA's broker, JLL, the Administration has identified the Rialto Facility, which meets GLWA's storage needs for the WRRF.
Although it is further away from the WRRF than 235 South McKinstry (~5.5 miles versus 2.1 miles), the travel time difference is negligible. The Rialto site may become a quicker trip when the Gordie Howe Bridge and the second span of the Ambassador Bridge are completed and in operation.
Currently, the United States Postal Services is occupying the Rialto Facility. The landlord has offered 4 months free rent to GLWA s...
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