Cedar City Council approved a long-term lease for city-owned property at approximately 62 North 900 East after extended discussion about lease length, rent structure and allowable residential uses.

The council voted to approve the lease with negotiated changes that require the tenant to obtain a building permit within eight years and complete construction within two years after permit issuance; the council also agreed to permit residential units only as short-term rentals above the main (ground) floor. The motion passed in a voice vote with one council member opposed, according to the transcript.

The lease retains a 99-year term and continues a rent structure that combines a fixed minimum base rent with a percentage rent clause: the tenant pays 2% of gross sales once an annual breakpoint is exceeded. City staff said the reduced leaseable acreage is now 1.39 acres; staff also said the lease includes a schedule of modest minimum rent escalations (approximately 1% increases over five-year periods as drafted).

Why it matters: The site sits near planned roadway work and is large enough to support a multi-tenant retail building or a mixed-use project. Council members and public commenters warned a very long lease could limit the city's flexibility if the use or operator proves unsatisfactory; supporters argued the term helps make a large project financially viable.

What council and staff said
- Tom Jett, the applicant present for the discussion, asked the council to clarify that percentage rent and base rent operate so the higher of the two applies and said he adjusted rent numbers to reflect the slightly smaller leased tract. "So it is slightly less on the acreage. So I adjusted all numbers, the base fee as well as this according to that same percentage on the leaseable square footage tract," Jett said.

- Randall (city staff) explained the percentage-rent mechanism and confirmed the legal description shows 1.39 acres. He told the council the percentage rent is paid annually under the current draft but that quarterly reporting could be arranged if the council preferred.

- A member of the public, Rick Coleman, urged the council to reconsider a 99-year term and to demand a specific development plan before approving such a long lease. "A hundred year lease in the best interest of the community for property that has great potential... my question is, is a hundred year lease in the best interest of the community?" Coleman asked.

Key changes the council approved
- Permit and build timeline: tenant must obtain the building permit within eight years of the lease and complete construction within two years after permit issuance (the council characterized this as a total ten-year period tied to permit/finish milestones).
- Residential use: the council struck a broad ban on dwelling units but restricted residential occupancy to short-term rentals (30 days or less) and limited those units to floors above the main commercial floor.
- Rent structure: the lease retains a base minimum rent plus a percentage rent of 2% of gross sales above the annual breakpoint; staff noted returned items are excluded from gross sales in the definition.
- Term: the underlying term remains 99 years (the council did not reduce the overall maximum term in the motion).

Concerns and context
Council members repeatedly described the 99-year length as a potential long-term risk, noting the city would have limited leverage if the tenant met only minimum contractual obligations. Supporters said the long term can make large private investment feasible. Rick Coleman and several council members urged reconsideration of minimum rent escalators and of whether a specific, professionally prepared development plan should accompany a lease of this length.

The property and market details
City staff and the applicant said the leased parcel is 1.39 acres after a road alignment reduced the originally contemplated tract by roughly one-third of an acre. Staff stated the lease draft was modeled on an earlier 2009 agreement with like terms, updated to reflect the smaller parcel and current negotiated provisions.

Next steps and implementation
The approved changes will be incorporated into a final lease for signature. Staff said they will return the final, written agreement reflecting the permit/build timelines, the clarified rent language and the short-term rental restriction for council or mayoral signature as required by city policy.

Speakers
Tom Jett — Applicant/developer (business)
Randall — City staff (government)
Rick Coleman — Citizen (citizen)
Mayor — Mayor of Cedar City (government)
Councilmember — Council members who participated in the motion and vote (government)

Actions
- Motion: Approve long-term lease for city property at approximately 62 North 900 East with changes requiring permit issuance within eight years and construction finished within two years after permit issuance; allow residential units only as short-term rentals above the main floor; retain existing rent structure and 99-year maximum term.
- Mover/Second: Not specified in the transcript.
- Outcome: Approved (voice vote; one council member opposed). Notes: Transcript shows council adopted the motion with one nay; individual vote names not specified in meeting record provided.

Clarifying details
- Parcel size: 1.39 acres (legal description in draft lease).
- Rent: Fixed minimum plus 2% of gross sales once the annual breakpoint is exceeded; draft defines gross sales and allows subtraction of returned items.
- Proposed alternative timelines discussed: staff described the agreed scheme as permit issued within eight years, two years to build, giving an effective ten-year window to complete construction milestones.

Community relevance
Geographies: Cedar City (site is near the future 100 East alignment).
Impact groups: nearby businesses and taxpayers; potential visitors/guests if short-term rentals or hotel rooms are built.

Provenance
- topicintro: {"block_id":"1984.33","local_start":0,"local_end":120,"evidence_excerpt":"Item number 9, consider a long term lease for city property at approximately 62 North 900 East." ,"reason_code":"topicintro"}
- topicfinish: {"block_id":"3799.125","local_start":0,"local_end":80,"evidence_excerpt":"All in favor? Aye. Aye. Opposed? 1. Nay." ,"reason_code":"topicfinish"}

proper_names:[{"name":"Cedar City","type":"location"},{"name":"Marriott at Cedar Ridge","type":"business"},{"name":"MCO","type":"organization"}],

searchable_tags:["lease","city property","short-term rentals","retail","Cedar City"]