SR - AGR-6145 - GROUND LEASE 2443 NORTH BATAVIA STREETAGENDA ITEM
September 9, 2014
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ReviewedNeri ed By:
TO: Honorable Mayor and
Members of the City Council City Manager
Finance Direct r
THRU: John W. Sibley, To Be Presente
Y. Joe DeFrancesco
City Manager X Cons Calendar _ City Mgr Rpts
Council Reports _ Legal Affairs
FROM: Joe DeFrancesco, Boards /Cmtes _ Public Hrgs
Public Works D' ector Admin Reports Plan/Environ
1. SUBJECT
A Lease Agreement with V & E Tree Service, Inc. to ground lease a portion of Water Well Site
#1, known as `Batavia ", located at 2443 N. Batavia Street.
2. SUMMARY
Lease Agreement between the City of Orange and V & E Tree Service, Inc. to ground lease a
portion of City owned water well site located at 2443 N. Batavia Street for the purpose of storing
business vehicles and equipment. The proposed lease will generate $165,000 in revenue during
the 10 year term of the lease.
13. RECOMMENDED ACTION I
1. Approve Lease Agreement between the City of Orange and V & E Tree Service, Inc.; and
2. Authorize the Mayor to execute and the City Clerk to attest to the Lease Agreement on
behalf of the City.
14. FISCAL IMPACT
The Proposed Lease provides for a monthly rent of $750 the first year, $1,000 a month the
second year, and $1,500 a month for years three through ten. The total revenue generated will be
$165,000.
The monthly rent will be deposited to the following account:
600.8011.48380.00000 Other Miscellaneous Revenue
15. STRATEGIC PLAN GOA I
2. Be a fiscally healthy community.
b. Analyze future fiscal needs and potential revenue opportunities.
d. Effectively manage and develop City assets.
ITEM 1 9/9/14
6. GENERAL PLAN IMPLEMENTATION
Economic Development Elements Goal 3.0 Strengthen the City's economic base and stimulate
employment through new commercial and industrial development and expansion.
Policy 3.2: Encourage public and private sector investments that promote commercial
development and expansion opportunities.
1 7. BACKGROUND and DISCUSSION
The owner of V & E Tree Service, Inc. (Victor Eggers) located at 2425 N. Batavia Street
contacted the City Water Division and inquired about leasing the rear portion of the adjacent
property, water well site #1, known as "Batavia ", located at 2443 N. Batavia Street. V & E Tree
Service has need of an additional area to store their business vehicles, grinders, etc.
The City Water Division is receptive to leasing out the rear portion of the water well site as the
water well and tank are currently out of use and not expected to be utilized for at least 10 years.
The access to the rear portion of the water well site will be through an opening in the chain link
fence that separates the water well site and V & E Tree Service, Inc. Upon termination of the
lease, V & E Tree Service, Inc. will be responsible to re- install the fence to pre -lease conditions.
By allowing V & E Tree Service, Inc. to lease a portion of unutilized City property, they will be
able to continue their business in the same location and not have to look to relocate to another
location. It is recommended that the City Council approve the Lease Agreement with V & E Tree
Service, Inc.
8. ATTACHMENTS
Lease Agreement between the City of Orange and V & E Tree Service, Inc.
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N:\ADMIN\ADMIN\LYoung \LYoung \Council Items \COUNCIL \Sept- 2014 \09- 09\Agenda - 2443 N Batavia Lease.doc
ITEM
9/9/14
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