Committee approves five-year lease under Superior Viaduct to John G. Johnson Construction for parking

The Municipal Services and Properties Committee on Jan. 6 approved an emergency ordinance authorizing the director of capital projects to lease land under Superior Viaduct Arch No. 6 to John G. Johnson Construction Company for five years with a five‑year renewal option.

The lease rate will be $1,165 per year, Suzanne Degenero, Commissioner of Real Estate, told the committee, a figure she said reflects a recent appraisal. "The lease rate will be $1,165 per year which is fair market value," Degenero said.

The nut graf: The parcel—7,265 square feet directly under the arch—is effectively landlocked and only accessible to the adjacent business, the administration said. Committee members questioned the low dollar amount per square foot, prior appraisals and how the appraisal was obtained before approving the renewal.

City staff said the original lease began in 2015 for five years with a five-year option exercised at the director’s discretion and will expire in March 2025. The lease allows parking (about 15 spaces in current use) and material storage but explicitly prohibits "noxious, volatile or hazardous material," Degenero said, and preserves the city's right of access for bridge maintenance.

Trish Turska, an administrator with John G. Johnson Construction Company, told the committee the site currently provides parking for the business: "We utilize it for about 15 parking places, and at this time, there is no storage to speak of." Degenero said there is an adjacent building owned by the company that uses the land.

Council members pressed staff on valuation and appraisal procedures. Councilman Casey noted the $97-a-month figure for 15 spaces and asked whether the city or tenant commissioned the appraisal. Degenero said the tenant hired the appraiser from a preapproved city list and bore the appraisal cost. "That appraisal firm is one of the approved appraisal firms on our list," she said, adding that the city provides an approved list and requires tenants to pay the appraisal fee so the city is not left covering appraisal costs if a transaction falls through.

Officials said the prior lease rate was $860 per year and that rents for other arches (ARCH 3 and ARCH 4) are "pretty similar," reflecting limited access and the landlocked nature of the parcels.

The committee approved the ordinance and the chair asked that the measure be signed.

Ending: The lease renewal will proceed under the terms described; the director of capital projects will exercise the renewal option per the ordinance language and retain maintenance access rights.