HomeMy WebLinkAboutCC 2025-02-11_10b Supplemental Information
MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development
SUBJECT: Supplemental Information
Agenda Item 10.b – February 11, 2025 City Council Meeting
Authorization of a Lease Agreement for City Property and Finding this
Action Exempt from CEQA
DATE: February 11, 2025
Attached is a revised resolution that includes a minor technical clarification.
cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Clerk
City Website and Public Review Binder
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING THE CITY MANAGER
TO EXECUTE A NEW LEASE AGREEMENT BETWEEN
THE CITY OF ARROYO GRANDE AND GINA’S ITALIAN
RESTAURANT
WHEREAS, the City of Arroyo Grande (“City”) owns the right-of-way adjacent to 138 East
Branch Street, Arroyo Grande, California, 93420 (“The Property”). The property is
improved with an outdoor dining area and other improvements ; and
WHEREAS, the City and Gina’s Italian Restaurant have agreed to a new lease agreement
(“Lease”) to allow the continued use of a four-hundred twenty-five (425) square foot
outdoor dining area within a portion of City right-of-way; and
WHEREAS, the proposed lease agreement does not constitute a “disposition” under the
Surplus Lands Act, as the proposed lease agreement is: (A) for a term of 15 years or less;
and (B) there will be no development or demolition on the site over the three-year term.
(Government Code Section 54221(d)(2)); and
WHEREAS, pursuant to Government Code Section 37395, a city may lease land it owns
or controls for period not to exceed 55 years for commercial development for business
purposes, when the governing body determines by ordinance or resolution that the
property is not required for other city purposes; and
WHEREAS, the Property has been used as an outdoor dining area by Gina’s Italian
Restaurant, the City will receive lease payments in exchange for allowing Gina’s Italian
Restaurant to use the public right-of-way commercial property for business purposes, and
the Property is not required for other City purposes; and
WHEREAS, the City’s public purpose in receiving lease payments in exchange for the
use of the City property, as authorized by Government Code Section 37395, clearly
outweighs any private benefit; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo as
follows:
1. The foregoing recitals are true and correct and are incorporated herein.
2. The City Council authorizes the City Manager to execute a new lease agreement
(attached in substantially final form) between the City of Arroyo Grande and Gina’s
Italian Restaurant for the right-of-way adjacent to 138 East Branch Street, subject
to any minor, technical, or non-substantive changes as approved by the City
Manager in consultation with the City Attorney.
RESOLUTION NO.
PAGE 2
3. Adoption of this Resolution authorizing the City Manager to execute a new lease
agreement for the right-of-way adjacent to 138 East Branch Street, is not a project
subject to the California Environmental Quality Act (“CEQA”) because it has no
potential to result in either a direct, or reasonably foreseeable indirect, physical
change in the environment. (State CEQA Guidelines, § 15060, subd. (c)(2)-(3),
15378). The lease of the property, where no development or demolition is
proposed, constitute an administrative activity of the City. Alternatively, the
adoption of the resolution to enter a lease agreement is exempt from CEQA on the
basis that it can be seen with certainty that there is not possibility that the activity
in question may have a significant impact on the environment. (State CEQA
Guidelines, § 15061, subd. (b)(3).)
4. Once executed, the City Clerk is directed to record the lease in the office of the
Clerk-Recorder of San Luis Obispo County pursuant to Government Code Section
37393.
On motion of Council Member ______________, seconded by Council Member
___________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 11th day of February, 2025.
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO.
PAGE 4
EXHIBIT “A”
FORM OF LEASE AGREEMENT