SR - AGR-6269 - GOUND LEASE ADJACENT TO COLLINS CHANNELAGENDA ITEM
4 October 13, 2015
° Onvri °
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Joe DeFrancesco,
Public Works D' ector
ReviewedNeri6
City Manager
Finance Direct r
To Be Presente :
Joe DeFrancesco
X Cons Calendar
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Plan/Environ
1. SUBJECT
Lease Agreement with Orange Meadows Apartments, LLC to ground lease a portion of
Unimproved City Property Adjacent to the Collins Channel, located east of Highland Street.
1 2. SUMMARY 77:1
The subject property is an unimproved dirt strip (approximately 7' x 290') located between an
alley and a chain link fence protecting the Collins Channel. The fee owner of the alley (Orange
Meadows Apartments, LLC) has requested to lease the unimproved dirt strip to use as parking
for the apartment complex. This item together with item 3.21 (Resolution No. 10887) on
tonight's agenda, will address the parking shortage in this area.
3. RECOMMENDED ACTION/MOTION
1. Approve Lease Agreement between the City of Orange and Orange Meadows Apartments,
LLC; and
2. Authorize the Mayor to execute and the City Clerk to attest to the Lease Agreement on behalf
of the City.
4. FISCAL IMPACT
The Proposed Lease provides for an annual rent of $1,000 per year for the first 10 years. At the
conclusion of the lease, it may be renegotiated if the need for parking still exists and both parties
are agreeable. The total revenue generated will be $10,000.
The annual rent will be deposited to the following account:
600.8011.48380.00000 Other Miscellaneous Revenue
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
ITEM - 6.'7 1 10/13/15
b. Analyze future fiscal needs and potential revenue opportunities.
d. Effectively manage and develop City assets.
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.
7. BACKGROUND and DISCUSSION
The subject property, an unimproved dirt strip (approximately 7' x 290'), is located between the
south side of an alley and a chain link fence protecting the Collins Channel. The alley is owned
in fee by Orange Meadows Apartments, LLC. The owner of the apartment complex has
requested to lease the unimproved dirt strip to use as parking for the apartment tenants. This
action along with the Resolution No. 10887 (item 3.21) on tonight's agenda, vacating the alley
easement, will help address the parking shortage in this area.
This lease will allow Orange Meadows Apartments the exclusive use for parking and thus they
will be able to tow unauthorized or abandoned vehicles. There is a City sewer line under the strip
of land. Should the City require access to maintain or repair it, or need access to the Collins
Channel, upon notice, the apartment manager will have any parked vehicles moved. Per the
lease, no other items or structures will be allowed on the dirt strip other than vehicles. During the
term of the lease, the lease may be cancelled by either party upon 30 days written notice to the
other party.
This strip of land is not needed for present or prospective City projects. As such, staff
recommends the approval of the lease agreement allowing Orange Meadows Apartments, LLC to
park vehicles there and at the same time generate income for the City.
8. ATTACHMENTS
• Lease Agreement between the City of Orange and Orange Meadows Apartments, LLC.
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N: \Public Works\ADMIN\LYoung \Council Items \COUNCIL \Oct - 2015 \10- 13- 15\Agenda -Lease -Alley at Highland St.doc
ITEM 2 10/13/15