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AGENDA ITEM REVIEW FORM |
7.B.
Special City Council Meeting
- Meeting Date:
- 05/24/2023
- Department Head:
- Sonia Cornelio
- Submitted By:
- Sonia Cornelio, City Clerk, City Clerk's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding proposed changes from the May 3, 2023, version of the Lease Agreement with Gemini Property Holdings, Inc. for a temporary Police Station located in East San Luis. (Miguel Alvarez, Interim Chief of Police)
SUMMARY:
Background
Because completion of the second police station at the city's community park on County 24th Street is two or three years away, Mayor Riedel negotiated a lease with Gemini Property Holdings, Inc. (a non-profit housed at Comité De Bien Estar) for their building and the two (2) lots it sits on, at 293 North Rachel Dodge Avenue. Avenue F is to the back of the property. It will be in close proximity to Fire Station 2.
The version of the lease presented and approved by the Council was for $1.00 per square foot of the 2,500-square-foot building ($2,500 per month), with no deposit. The rent includes the two 6,000-square-foot lots the building sits on, for a total of 12,000 square feet. The lease starts June 1, 2023, for three years, with the option to extend another three years. The June start date will allow time for Comité De Bien Estar to vacate and for the city to inspect before move-in. The city may modify the building for its purposes without permission from the owner.
The Basic Changes
The rent is the same as described above; however, the owner asked that the rent increase from $2,500 to $3,000 per month but only at the June 2026 mark and only if the city wishes to exercise the option for another three (3) years. The owner also requested that the city's use be limited to a temporary second police station.
Because completion of the second police station at the city's community park on County 24th Street is two or three years away, Mayor Riedel negotiated a lease with Gemini Property Holdings, Inc. (a non-profit housed at Comité De Bien Estar) for their building and the two (2) lots it sits on, at 293 North Rachel Dodge Avenue. Avenue F is to the back of the property. It will be in close proximity to Fire Station 2.
The version of the lease presented and approved by the Council was for $1.00 per square foot of the 2,500-square-foot building ($2,500 per month), with no deposit. The rent includes the two 6,000-square-foot lots the building sits on, for a total of 12,000 square feet. The lease starts June 1, 2023, for three years, with the option to extend another three years. The June start date will allow time for Comité De Bien Estar to vacate and for the city to inspect before move-in. The city may modify the building for its purposes without permission from the owner.
The Basic Changes
The rent is the same as described above; however, the owner asked that the rent increase from $2,500 to $3,000 per month but only at the June 2026 mark and only if the city wishes to exercise the option for another three (3) years. The owner also requested that the city's use be limited to a temporary second police station.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE LEASE AGREEMENT WITH GEMINI PROPERTY HOLDINGS, AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $90,000 for 3 Years or $30,000 per year
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We did not budget for this item. The fiscal impact for FY 2023 is $2,500. We have the budget capacity to cover the fiscal impact through June 30th, 2023 due to the delay of projects. For Year 2024 and the following years, we will budget accordingly for this item if approved by the Council.
If the city exercises the option to extend the lease another three years starting June 1, 2026, the rent will be $3,000 per month for $36,000 per year.
If the city exercises the option to extend the lease another three years starting June 1, 2026, the rent will be $3,000 per month for $36,000 per year.