CC 2024-10-08_09g RE/MAX Lease Agreement_214 East Branch Street_PPApproval of a Six-Month Lease Agreement Between the City of Arroyo Grande and RE/MAX Success for Property Located at 214 East Branch Street (Old City Hall)
10/08/2024
10.a.
1
4/11/2023
Olohan Alley elevation
Branch St. elevation
Built in 1920
3,200 square feet
Recent commercial building inspection resulted in several issues.
Main issues/focused building inspection areas:
Electrical System
Foundation settling
HVAC operations
2
10/08/2024
New Tenant - Old City Hall Building
New tenant: RE/MAX Success would utilize the Old City Hall space during a six-month lease period.
- RE/MAX Success has been in the space with the original tenant for approx. 3 years.
- There are currently office-use subleases in part of the space.
- Current rent is proposed to remain unchanged during this short-term evaluation period.
10.a.
3
10/08/2024
Old City Hall – next steps
Focused building inspections will occur.
Design and repair costs will be estimated.
The scope and costs of repairs would be presented to the Council for consideration and options.
Potential long-term lease negotiations could begin after Council consideration
10.a.
4
10/08/2024
Recommendation
1) Adopt a Resolution authorizing the City Manager to execute a six-month lease agreement, in substantially final form, between the City of Arroyo Grande and RE/MAX Success for the City-owned
property at 214 East Branch Street, also known as Old City Hall, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the
City Attorney; and
2) Determine that the approval of a short-term lease agreement for 214 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 resolution to enter a lease agreement
is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State
CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment
10.a.
5