3/25/2014 10:50:00 AM Williams council approves Route 66 Zipline contract
Williams Mayor John Moore tests out the zipline last year. Zip Adventures will pay the city of Williams a $50,000 rent payment this year to keep the ride at its current downtown location. Ryan Williams/WGCN
WILLIAMS, Ariz. - The Route 66 Zipline will give the city of Williams double the rent payment this year under a new lease agreement the City Council approved at its March 6 meeting.
In the original lease agreement, Zip Adventures paid the city $25,000 upfront plus 18 percent of gross revenue after that amount was reached. In the new lease agreement, Zip Adventures will pay the city $25,000 prior to March 15 and an additional $25,000 before July 15, plus 18 percent of gross revenue after that amount is reached.
The term of the lease is one year, with the possibility of a one-year extension. The first one-year term ends Dec. 31, 2014.
The new agreement stipulates that if Zip Adventures abandons the equipment, the city will take ownership of it for removal and cost recovery.
The lease agreement also includes the requirement for a $5,000 performance bond or escrow account to cover repairs in the parking lot where the zipline is located.
"It has the same effect," City Manager Brandon Buchanan said. "Either way there's $5,000 there if we need it."
At the meeting, councilman Don Dent said he would like to see an engineer's report for the zipline's lightning protection.
The council approved a special use permit for no more than two years for the zipline to continue operating at Grand Canyon Boulevard and Route 66 at its Feb. 27 meeting.
The Route 66 zipline opened for business two weekends ago. Zipline owner Logan Checketts said in an email that he was "glad to have the agreement completed and excited for the season upon us."
The council also approved a bid for bleacher covers for the Rodeo Grounds at its March 6 meeting. The previous covers, which were temporary, were damaged in a storm last fall. With half of the bleachers exposed, several event organizers were uncertain if they would schedule their events at the Rodeo Grounds, according to Buchanan's staff report.
With the council's approval, a new permanent steel structure will be installed prior to the Harley Owners Group (HOG) Rally that starts June 7. The structure and installation will cost about $85,213. When other costs like the foundations are included, the total cost of the project comes to $110,000.
While the cost for the bleacher covers was not included in the budget, city staff has found funding sources to pay for them. The $50,000 in Bed, Board and Booze tax revenue intended for a ball field at Cureton Park will not be used for that purpose now because of the current level four water restrictions. In addition, the city has a $23,000 insurance payment from the collapse of the previous bleacher covers. Finally, the city will use $37,000 from the guaranteed zipline payments to round out the cost of the project.