CC 2018-07-24_09p Lease Agreement_Car Corral Public Parking LotMEMORANDUM
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: JULY 24, 2018
SUMMARY OF ACTION:
Approval of the Agreement of Lease ("lease") 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 also responsible
for parking lot repairs and maintenance.
RECOMMENDATION:
It is recommended the City Council: 1) approve the Agreement of Lease ("lease") with
Diane D. Pfarr Family Trust, the Gaddis Family Trust, the Nancy T. Loomis Revocable
Living Trust; and Oliver V. Loomis Matthews, Lucky K. Matthews, Sandy Matthews, and
Eddie S. Matthews; 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 101 and
103 East Branch Street, the Village Grill and Sports Dugout, is privately owned and is
leased to the City for $1 per month. The current five-year term expires on July 31,
2018. The City Council approved a lease renewal for another five-year term at its
June 12, 2018 City Council meeting, however, the City was subsequently informed of
a revision in ownership information and an additional request from the owners
regarding the removal of a decorative tree in the parking lot due to maintenance
concerns.
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
Item 9.p. - 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
JULY 24, 2018
PAGE 2
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.
The revised lease includes updated ownership trustee information provided by the owner.
Additionally, the owners requested to add a provision that the bottle brush tree at the
southwest corner of the property be removed as it sheds it’s flower needles and continually
clogs a drain located beneath the tree. The bottle brush in question is not a City Street
tree. It is located in a planter immediately adjacent to the building that currently houses
the Sports Dugout retail store. The tree is a flowering tree native to Australia. The lease
provides that the City is responsible for maintenance and rather than remove the tree, the
lease outlines that the drain is to be maintained by the City on a regular maintenance
schedule. The owners have agreed to the compromise, with the understanding that
should drainage issues continue, the item will be revisited.
ALTERNATIVES:
The following alternatives are presented for consideration:
1. Approve the agreement of lease with the owners 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:
The City is responsible for the maintenance of the parking lot.
ENVIRONMENTAL REVIEW:
Renewal of the lease is categorically exempt per Section 15311 of the California
Environmental Quality Act Guidelines.
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.p. - Page 2
AGREEMENT OF LEASE
THIS AGREEMENT OF LEASE, made and entered into this day of
, 2018, by and between DIANE D. ULIBARRI, aka DIANE. D. PFARR, as Trustee of the DIANE D. PFARR FAMILY TRUST, Est'd August 12, 1991; THOMAS ARLIN GADDIS AND SUSAN GADDIS, Trustees of the GADDIS FAMILY TRUST established March 9, 1995; NANCY T. LOOMIS, Trustee of the NANCY T. LOOMIS REVOCABLE LIVING TRUST; OLIVER V. LOOMIS MATHEWS, LUCY K. MATTHEWS, SANDY MATTHEWS, and EDDIE S. MATTHEWS 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.
Te rmination 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.
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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
DIANE D. ULIBARRI
PO Box 208,
Arroyo Grande, CA 93421
Personal delivery to Owner may be made by personal delivery to Diane D. Ulibarri. 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 allow water in adjacent gutters and drains to flow freely as well as to prevent impacts to the building foundation. Tenant shall place the under-sidewalk drain at the southwesterly corner of the leased premises on a regular annual maintenance schedule to be cleaned out not less than three (3) times a year. Tenant shall modify the drain line in the planter area at the southwesterly corner of the leased premises to drain to the center of the planter and shall trim the bottle brush tree located inside the planter so that it does not overhang the drainage facility adjacent to the building. Additionally, 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: Diane D. Ulibarri 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.p. - Page 4
Dated:-----------
OWNER:
By:‐‐‐‐‐‐‐‐‐‐‐‐
DIANE D. ULIBARRI, TRUSTEE
By:
SUSAN GADDIS, TRUSTEE
By:
THOMAS ARLIN GADDIS,
TRUSTEE
By:
NANCY T. LOOMIS, TRUSTEE
By:
OLIVER V. LOOMIS MATTHEWS
By:
LUCY K. MATTHEWS
By:
SANDY MATTHEWS
By:
EDDIE S. MATTHEWS
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.p. - 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.
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