Scottsdale City Council OKs SkySong lease amendment, again

Scottsdale City Council adopted resolution No. 10492 authorizing the seventh amendment to the ground lease with Arizona State University Foundation Scottsdale, LLC, regarding the location and configuration of the city’s remaining 1.5-acre parcel in the SkySong development during a regular meeting July 6.

ASUF is requesting the city identify a specific location and configuration for its 1.5-acre parcel that is excluded from the ground lease and depicted as a generalized 1.5-acre bubble in an “approximate location subject to change” near the southwest corner of the SkySong property.

The catalyst to ASUF’s request to identify the precise location of the city’s excluded parcel, is ASUF’s intent to pursue a transaction with a hotel developer for a pad located at the southwest corner of the SkySong parcel with Scottsdale Road frontage.

The precise location would be at the northeast corner of Scottsdale Road and Enterprise Drive, according to a July 6 city council report.

ASUF intends to complete a transaction by April 15, 2017 that would bring a 120-room branded hotel to this location. Such a project phase, if constructed, would be governed by payment obligations to the city contained in the current ground lease provisions.

During the council meeting, councilman David Smith made a motion to continue the item. Vice Mayor Kathy Littlefield seconded the motion. No vote was taken.

Councilwoman Linda Milhaven made an alternative motion to adopt the resolution, with additional amendments presented at the meeting. Councilwoman Virginia Korte seconded the motion, which carried 6-1, with councilman David Smith dissenting.

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