when contract terms were not met. management's view appears to be reasonable given that the space is currently occupied by a named lessee, there is a 5 year rate renewal letter issued by the City, the lessee is paying rent in accordance with said letter and there is a month to month provision in the contract.
3.4 Assess if other proponents applied for space and were properly considered. The party alleging this complaint provided evidence that they approached the City with a plan and desire to rent the space which CHAA occupied.
Based on the contract wording, rate indication and rental payment it is management’s view that the 3rd and final extension is in force with the lessee and the City would not have been in a position to rent the space to another party until lease term completion. If the interpretation of the term extension was incorrect the lease terms would revert to a month to month basis and entering into alternative space use solutions would be at the discretion of the City (with terms and covenants appropriately met) which it did not exercise.

Conclusion: Based on the contract wording, City communication of rate for 5 years (2015-2019) and the lessee rental payment management is of the view that the 3rd and final extension is in force with the lessee and the City would not have been in a position to rent the space to another party until lease term completion. In the event the lease extension is not activated lease terms revert to a month to month basis and entering into alternative space use solutions would be at the discretion of the City (with terms and covenants appropriately met) which it did not exercise. In this analysis, we were not able to locate a copy of the lessee intent to extend the lease agreement as part of the City records. Given the above evidence it appears that an inforce lease is in place between the City and CHAA and the property was not available for other lessors to consider, or in a more conservative interpretation - that a lease was in force on a month to month basis and the City and lessee were not interested in changes to the existing arrangement.