Sec. 122.428. - Leasing of City-owned Real Property.

(a) Lease. "Lease" means an interest in land designated by a contract creating a landlord-tenant relationship between the City and the lessee granting lessee exclusive use, possession, and control of specified property. (b) Real Estate Division authority; exceptions. Unless otherwise specifically provided for in this Ordinance Code, including but not limited to those provisions specifically provided for the Downtown Investment Authority in Chapter 55 , and with the exception of subsurface interests, which may only be conveyed on approval of the City Council, the Real Estate Division is authorized to pursue, negotiate, and execute leases of City-owned real property for a term of one year or less with no more than one one-year renewal, for residential, recreational, commercial, industrial, educational, retail, or other uses. The allocation of space in public buildings for use by City agencies and the independent authorities is provided in Chapter 108 , Ordinance Code, and is not among the delegations granted here. Leases for communication antennas and towers on City Property are addressed in Subpart E, and site leases for small cell antennas on City improvements are addressed in Part 4A, Chapter 711 , Ordinance Code, and are not governed by the lease provisions in this Subpart. (c) Renewal. All leases may be renewed by the Real Estate Division on the terms and conditions provided for renewal in the lease. (d) Due diligence. Prior to executing an agreement for the lease of City-owned real property the Real Estate Division shall investigate whether the property to be leased is encumbered by a bond indenture. If the property is subject to a bond indenture, the Real Estate Division shall seek guidance from the Office of General Counsel and the Division of Finance to determine whether a lease of the property for the intended uses would violate the indenture. The Real Estate Division shall take no action that would cause the interest on the bonds to become taxable. (e) Value received. The rental for the lease of City-owned real property shall be a value determined to be in the public interest taking into account market rental rates. Any lease for less than fair market value shall be approved by the City Council. (f) Required terms. Lease provisions for leases by the Real Estate Division shall provide for lease fees, maintenance, termination and such other provisions necessary or appropriate to protect the City's interests. Each lease shall contain the indemnity and insurance provisions required by the City's Risk Management Division. (g) Reservation of rights. Each lease shall reserve to City the right to terminate the lease under circumstances that threaten the public health or safety, of if the lease creates an adverse impact on the City's tax-exempt bond status. (h) No warranties. No lease shall warrant the feasibility of the tenant's use or the current or ongoing quality or conditions of the improvements or their suitability for lessee's purposes, the competence or qualifications of any third party furnishing services, labor or materials whether or not City has approved the contract for the third party activities, or any other form of warranty or indemnity, including an indemnity for attorney fees. The lessee shall acknowledge that the lessee has not relied and will not rely upon any experience, awareness or expertise of the City, or the City's employees, agents or contractors and shall acknowledge that the City's only responsibility under the provisions of the lease is to provide quiet enjoyment. The City shall not be liable to lessee for any damages arising from lessee's use of the City improvements, whether economic or noneconomic, general or special, incidental or consequential, statutory, or otherwise, arising out of the presence or operation of lessee's activities on City-owned real property. (Ord. 2018-871-E , § 2)