CC 2018-06-12_09j Lease Renewal for Car Corral Parking Lot
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF AGREEMENT OF LEASE RENEWAL FOR
PORTION OF CAR CORRAL PUBLIC PARKING LOT LOCATED
BETWEEN 103 AND 109 E. BRANCH STREET FOR AN ADDITIONAL
FIVE-YEAR TERM FROM AUGUST 1, 2018 TO JULY 31, 2023
DATE: JUNE 12, 2018
SUMMARY OF ACTION:
Approval of the Agreement of Lease ("lease") with The David Family Trust, Nancy T.
Loomis Revocable Living Trust, and the Matthews Children's 1997 Irrevocable Trust;
will allow the owner and City efficient access and use of the Car Corral parking lot for
public parking.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The lease provides that the City pay rent for the full lease term of $60 ($1 per month
for 60 months) upon acceptance, pay all applicable property taxes, and hold the
owners harmless from any claims during the lease term. The City is responsible for
parking lot repairs and maintenance.
RECOMMENDATION:
It is recommended the City Council: 1) approve the Agreement of Lease ("lease") with
The David Family Trust, Nancy T. Loomis Revocable Living Trust, and the Matthews
Children's 1997 Irrevocable Trust; and 2) authorize the Mayor to execute the lease on
behalf of the City.
BACKGROUND:
The City owns most of the public parking lot on the north side of East Branch Street
east of Nevada Street known as the Car Corral. However, a portion adjoining 103 and
109 East Branch Street, the Village Grill and Sports Card Shop, is owned by David,
Loomis and Matthews Trusts and is leased to the City for $1 per month. The current
five-year term expires on July 31, 2018 and the City requested renewal for another
five-year term.
Item 9.j. - Page 1
CITY COUNCIL
CONSIDERATION OF AGREEMENT OF LEASE RENEWAL FOR PORTION OF
CAR CORRAL PUBLIC PARKING LOT LOCATED BETWEEN 103 AND 109 E.
BRANCH STREET FOR AN ADDITIONAL FIVE-YEAR TERM FROM AUGUST 1,
2018 TO JULY 31, 2023
JUNE 12, 2018
PAGE 2
ANALYSIS OF ISSUES:
The Village Downtown core and a portion of the Village Mixed Use Districts between
Traffic Way, Le Point Street, Crown Hill and Arroyo Grande Creek are served by a
combination of on-street parking and public off-street parking lots, both owned and
leased by the City, and numerous private parking spaces. The City owns most of
Olohan Alley, the Car Corral and the Le Point Street lot behind the Council Chambers,
and leases some of the private properties adjoining the Car Corral.
The current and proposed lease has a straight five-year term with no cancellation
unless agreed to by both parties. The City is responsible for maintenance and
operation of the lots and payment of property taxes, liability insurance, and holds
harmless the owners from all claims.
ALTERNATIVES:
The following alternatives are presented for consideration:
1. Approve the agreement of lease with the David, Loomis, and Matthews Trusts
and authorize the Mayor to execute it on behalf of the City;
2. Direct staff to modify the terms of the lease;
3. Reject the lease, which would effectively make nine (9) existing spaces private
parking accessed from City owned driveways; or
4. Provide staff other direction.
ADVANTAGES:
The lease enables the City to continue to provide these parking spaces for public use.
DISADVANTAGES:
No disadvantages are identified with the recommended action,
ENVIRONMENTAL REVIEW:
Renewal of the lease is categorically exempt CEQA Guidelines section 15311.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.j. - Page 2
AGREEMENT OF LEASE
THIS AGREEMENT OF LEASE, made and entered into this ___ day of
_______ , 2018, by and between NANCY GADDIS, as Trustee of the
DAVID FAMILY TRUST, Est'd May 15, 1986; NANCY T. LOOMIS, as Trustee of
the NANCY T. LOOMIS REVOCABLE LIVING TRUST; and SARAH M. MATTHEWS,
Trustee of the MATTHEWS CHILDREN'S 1997 IRREVOCABLE TRUST dated
December 30, 1997 hereinafter for the purpose of convenience sometimes
collectively termed "Owner," and the City of Arroyo Grande, hereinafter for the purpose
of convenience sometimes termed "Tenant", that certain real property in the City of
Arroyo Grande, San Luis Obispo County, California, more particularly described in
Exhibit "A", a copy of which is attached hereto and made a part hereof by reference.
Lease: Owner hereby leases to Tenant that certain real property in the City of
Arroyo Grande, San Luis Obispo County, California, more particularly described
in Exhibit "A" a copy of which is attached hereto and made a part hereof by reference.
Term: The term of this lease shall be for a period of five (5) years, beginning on the
first day of August, 2018 and ending on the last day of July 2023.
Rent: Rent for the term of the lease is Sixty Dollars ($60.00), being the sum of One
Dollar ($1.00) per month, for each and every month of the term hereof, to be paid in
advance upon the signing of this lease by the parties hereto.
Taxes: Tenant shall pay not less than thirty (30) days before delinquency, all City and
County real property taxes assessed on the leased premises during the term of this
lease, or any extension thereof. The taxes shall be prorated as applicable for the
taxing fiscal year for any portion of the term. The leased premises are presently
assessed on the county tax records as a separate parcel and taxed as a separate
parcel. All parties to this agreement mutually agree to use their best efforts to have the
County continue to tax the property in the same manner.
Owners shall cooperate with Tenant in promptly delivering to Tenant all tax bills
received covering the leased property.
Termination Prior to July 31, 2023: If both Owner and Tenant agree in writing, this
lease may be terminated prior to July 31, 2023.
Hold Harmless and Insurance: Tenant shall hold Owner harmless from any claim for
loss or damage to person or property by reason of the occupancy and use of the
leased premises, or failure to keep the premises in good condition and repair.
Tenant shall keep said leased property insured for liability under its municipal
blanket insurance policy, which policy shall specifically name the parties hereto.
Item 9.j. - Page 3
Notices: All notices to be given to Owner or to Tenant shall be given by
personal delivery, or, registered mail (return receipt requested) deposited in the
United States post office in the City of Arroyo Grande, postage prepaid. The addresses
to be used for the parties to this agreement are:
Tenant:
Owner:
CITY OF ARROYO GRANDE
300 East Branch Street
Arroyo Grande CA 93420
Michael Zimmerman
P.O. Box 970
Arroyo Grande, CA 93421
Personal delivery to Owner may be made by personal delivery to Michael
Zimmerman. Personal delivery to Tenant may be made by personal delivery to
the City Manager, or the Director of Legislative and Information Services /City Clerk.
Change of address may be made in writing, delivered to Owner or to Tenant as herein
provided.
Sublease: Tenant may not assign, transfer in whole or in part, or sublet any
portion of the leased premises without the prior written consent of Owner.
Parking Meters: No parking meters shall be permitted on the leased premises without
the prior written consent of Owner.
Waste, Alterations, Additions: Tenant shall not commit or suffer to be committed
any waste of the said premises or permit any public or private nuisance. Tenant shall
not make or suffer to be made any alterations to the leased premises without
the prior written consent of Owner. Any additions or alterations, which may be
permitted on the leased premises, shall become a part of said premises. Tenant
shall keep all trees, bushes and shrubs on the property trimmed to a height not to
exceed one (1) foot below the top of the parapet of the portion of the building
situated at 101 -103 East Branch Street.
Use of Premises: The premises are being leased for the sole purpose of use for
off street parking, and Tenant shall not permit the premises to be used for any
other purpose without the prior written consent of Owner.
Owner Agent: Michael Zimmerman is appointed by the various Owners to serve
as their agent in all matters pertaining to this lease. This provision may be revoked
at any time by any of the individual owners giving written notice to Tenant.
Repairs and Maintenance: Tenant shall, at Tenant's sole cost and expense, keep
the premises in good condition and repair at all times during the term of this lease.
Item 9.j. - Page 4
Dated: -----------
OWNER:
By:-----------NANCY GADDIS, TRUSTEE
By: __________ _ NANCY T. LOOMIS, TRUSTEE
By:-----------SARAH M MATTHEWS, TRUSTEE
TENANT:
By:-----------JIM HILL, MAYOR
Attest:
KELLY WETMORE, CITY CLERK,
DIRECTOR OF LEGISLATIVE AND
INFORMATION SERVICES
Approved as to Form:
HEATHER K. WHITHAM,
CITY ATTORNEY
Item 9.j. - Page 5
EXHIBIT "A"
That certain real property in the City of Arroyo Grande, County of San Luis
Obispo, State of California, described as follows:
That certain portion of the "Hotel Lot" of the Buena Vista Tract in the City of
Arroyo Grande, County of San Luis Obispo, State of California, according to
map filed for record October 2, 1885. In Book A, Page 58 of Maps in the
Office of the County Recorder of said County; beginning at the most southerly
corner of said Hotel Lot and running thence north 57 ° 15' east, 97 .90 feet along the
southeasterly line of said lot to the true point of beginning; thence north 32 ° 43' 37"
west, 75 feet; thence south 57 ° 15' west and parallel with the southeasterly line of
said lot, 97. 90 feet to the southwesterly line of said Hotel Lot; thence south 32 °
43' 37" east (record south 32 ° 45' east) along the southwesterly line of said lot, a
distance of 20 feet; thence north 57° 15' east along the line parallel with the
southeasterly line of said lot, a distance of 55.90 feet to a point; thence south 32 ° 43'
37 east along a line parallel with a southwesterly line of said lot 55 feet to the
southeasterly line of said lot; thence north 57 ° 15' east 42 feet along the
southeasterly line of said lot to the true point of beginning.
Item 9.j. - Page 6