SR - AGR-6496 - LEASE AGREEMENT FOR 180 SOUTH WATER STREET1. SUBJECT
Lease Agreement with Selman Chevrolet Company for 180 South Water Street, Assessor Parcel
Number (APN) 390 - 452 -05.
1 2. SUMMARY
The property at 180 S. Water Street is vacant real property owned by the City and is located at
the southeast corner of Water Street and Almond Avenue. Selman Chevrolet will be using this
parcel to store new car inventory.
3. RECOMMENDED ACTION
1. Approve Lease Agreement between the City of Orange and Selman Chevrolet; and
2. Authorize the City Manager to execute to the Lease Agreement on behalf of the City.
4. FISCAL IMPACT 771
The Proposed Lease provides for a rent of $10,000 per month. The monthly rent will be
deposited to the following account: 100.0000.44210.20366 Rents & Leases — Water Street
Property
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
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.
7. BACKGROUND and DISCUSSION
The property at 180 S. Water St. is an unimproved parcel of land owned by the City with no
immediate identified use. The Property, located on the west side of S. Water Street is across the
street from the Water Division Facilities. The property is fenced. Selman Chevrolet approached
the City with an interest in leasing the property for the purpose of storing new vehicle inventory.
To facilitate the request, the City Manager executed a short-term lease that allowed Selman to
begin storing vehicles on June 15, 2017. In addition, Selman Chevrolet as the lessee, applied for
and obtained a Temporary Use Permit, which was reviewed by the SRC /SMART Committee.
The TUP conditions focused on limiting adverse impacts by this use to the surrounding
neighborhood. The TUP conditions were incorporated into the short-term agreement, as well as
the proposed agreement (Exhibit B). The following are a list of some of the major conditions that
are included as part of the TUP to ensure a minimum impact on the surrounding neighborhood:
1. The property shall maintain the existing chain link fence around the vehicle storage area
for the duration of the use. The existing gate shall be locked with a duel -keyed Knox
padlock accessible to both police and fire staff.
2. Gates are to be closed and secured with lock unless it is necessary to move a vehicle.
3. Vehicles transferred to the site shall occur individually and not via a semi -truck and
vehicle hauling trailer.
4. Vehicle washing, cleaning, maintenance or, repair shall not occur on -site.
5. Vehicles stored shall be limited to sales inventory vehicles. Employee and service
vehicles shall not be stored on -site.
6. All entrances and exits must utilize the Water Street gated entrance.
7. Entry into the lot must occur after 7 am; exits after 9 pm are not permitted.
8. Lighting or any structures cannot be added to the area without permission from the City.
9. Fire lanes must remain clear at all times.
10. Access vehicles may not be parked on Water Street or in surrounding neighborhood.
Note: The TUP expires after 12 months, but can be renewed for an additional 12 months.
The term of the agreement is month to month at a rate of $10,000 a month. During the term of
the lease, the lease may be cancelled by either party upon 10 days written notice to the other
party. The property at 180 S. Water Street is not currently needed for present City projects. As
such, staff recommends the approval of the lease agreement allowing Selman Chevrolet to use
this lot for storage of vehicles to help a local business while generating income for the City.
8. ATTACHMENTS
• Lease Agreement between the City of Orange and Selman Chevrolet Company.
ITEM 2 7/11/17