Client: City of Tempe (AZ)
The City of Tempe received a proposal to extend and recast the ground lease underlying the Tempe Buttes, an approximately 345 room resort hotel with 40,000 square feet of meeting space. Based on review of a voluminous set of documents, GG+A prepared a base case forecast of the value of the rental payments ground lease and residual value of the property to the City under the terms of the ground lease. GG+A has estimated the value of proposals made by the ground lessee and identified risks and issues posed by the various proposals. GG+A has also critically reviewed a report provided by consultants to the ground lease and provided memorandum reports on this report and other issues and questions that have arisen throughout the negotiation process. GG+A principals have participated in in-person and conference calls with City staff and the ground lessee’s representatives, including consultants and attorneys. As a result, the City has not accepted proposals that would have put the City in a worse position than the terms of the ground lease provide under the base case and holds available the potential for the City to benefit from an extension and recasting of the ground lease.