As demand for truck storage spiked, Commerce let company set up parking lots for next to nothing

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Experts suggest the city potentially missed out on hundreds of thousands — if not millions — of dollars in revenue over the duration of the leases.

truck parking should have “essential amenities such as a paved and striped parking area, restrooms, water, vending machines, lighting, green space and picnic tables.”“Felix undertook a significant clean-up effort of the properties in question, which placed my lease well within market range,” he wrote.

New leases, entered into in 2022, increased the total rent Fenix is paying for the two properties — with up to 26 acres available — to $15,000 per month. The rent is slated to increase again to $35,000 total per month in mid-2023, due in part to the demand for such properties, Cisneros said. “The City charges Jack-in-the-Box $8,000 a month for the property it leases and doesn’t base it on their revenues,” Cisneros wrote in a follow-up email. “The City doesn’t operate these businesses, it holds property that is bound by existing purchase and sale agreements with private parties or that is slated for future development for either public use or housing.

The map attached to the lease indicated Fenix had access to two-thirds of the site when FedEx wasn’t using it, but Cisneros alleges the space shown was inaccurate. Fenix was allowed to use only about 35,000 square feet, or roughly a third of the lot, he said. The agreements with Fenix also were during a period “when there was no other use or interest in the site” and allowed the city to end the lease with only 10 days’ notice, Cisneros said.

 

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