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Home My WebLink About05.a. Public Hearing re lease of property adjacent to 1975 Diamond Blvd., Concord5.a . PUBLIC HEARING TO CONSIDER DECLARING CERTAIN DISTRICT LAND UNNEEDED AND AUTHORIZE STAFF TO EXECUTE A LEASE FOR CENTRAL CONTRA COSTA SANITARY DISTRICT PROPERTY SUGGESTED AGENDA NOVEMBER 6, 2014 1. Request Staff Report from Environmental Services Division Manager, Danea Gemmell 2. Hearing a. Open Public Hearing b. Receive Public Comments c. Close Public Hearing 3. Board Deliberations 4. Recommended Actions (Motion Required) a. Adopt a resolution authorizing the General Manager, or his designee, to execute a lease agreement with Willows Center Concord, LLC, for a term of up to 10 years for a portion of the property (APN 126- 440 -003) adjacent to 1975 Diamond Boulevard, Concord; and declaring the property as currently unneeded. Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 6, 2014 Subject: CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE AGREEMENT WITH WILLOWS CENTER CONCORD, LLC, FOR A PORTION OF DISTRICT PROPERTY (APN 126- 440 -003) ADJACENT TO 1975 DIAMOND BOULEVARD, CONCORD, FOR A PERIOD NOT TO EXCEED 10 YEARS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED Submitted By: Initiating Dept. /Div.: Lisa Hiddleson, Prov. Sr. Right of Way Agent Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer ` 1� D. Gemmell — Environmental Services Division Manager K. Alm Roger S. Bailey J. Petit — Director of Engineering Counsel for the Distric General Manager ISSUE: Prior to entering into any lease of real property owned by the District, the Board must conduct a public hearing at which the lease proposal shall be considered. Leased property must be deemed unneeded for District purposes during the term of the lease. RECOMMENDATION: Adopt a resolution authorizing the General Manager, or his designee, to execute a lease agreement with Willows Center Concord, LLC, for a term of up to 10 years for a portion of the property (APN 126- 440 -003) adjacent to 1975 Diamond Boulevard, Concord; and declaring the property as currently unneeded. FINANCIAL IMPACTS: The District will receive additional rental income. The proposed rent is $15,256 per year with annual increases at the lesser of 4% or San Francisco Region Consumer Price Index. ALTERNATIVES /CONSIDERATIONS: The alternative to this action is to abandon lease income. BACKGROUND: The proposed lease is for a portion of the 53,579- square foot strip of land that the District owns in fee and through which the District's existing 72 -inch diameter A -Line Interceptor passes. The fee strip is located between the Willows Shopping Center in Concord and Interstate 680. Willows Center Concord, LLC, Lessee, has been in continuous possession of the property since January 1983. The District and the Lessee entered into a property lease agreement for the subject property on January 20, 1983. The lease had an initial term of 20 years, and was to automatically extend for an additional 20 years at the end of the initial term unless cancelled by either party. California Health & Safety Code Section 6514.1(d), which became effective after the date of the original lease, required that leases for periods longer than 10 years be awarded through a competitive bid process. In light of the new regulation, the District and Lessee mutually agreed to terminate the original lease on May 9, 2005 and entered C: \Users \danderson \Desktop \PP to Conduct PH for Willows Center 11 -6 -14 (TB Rev2).docx Page 1 of 2 POSITION PAPER Board Meeting Date: November 6, 2014 subject: CONDUCT A PUBLIC HEARING TO CONSIDER APPROVING A LEASE AGREEMENT WITH WILLOWS CENTER CONCORD, LLC, FOR A PORTION OF DISTRICT PROPERTY (APN 126- 440 -003) ADJACENT TO 1975 DIAMOND BOULEVARD, CONCORD, FOR A PERIOD NOT TO EXCEED 10 YEARS, AND DECLARE THE PROPERTY AS CURRENTLY UNNEEDED into the current lease for a term of 10 years, expiring May 9, 2015. The lease use is compatible with District use and the proposed lease will be of public benefit. COMMITTEE RECOMMENDATION: The Real Estate, Environmental and Planning Committee reviewed this matter at the October 7, 2014 meeting and recommended approval. RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the General Manager, or his designee, to execute a lease agreement with Willows Center Concord, LLC, for a term of up to 10 years for a portion of the property (APN 126- 440 -003) adjacent to 1975 Diamond Boulevard, Concord ; and declaring the property as currently unneeded. Attached Supportinq Document: 1. Map of Lease Area — Diamond Blvd. 2. Proposed Resolution C: \Users \danderson \Desktop \PP to Conduct PH for Willows Center 11 -6 -14 (TB Rev2).docx Page 2 of 2 A 'l4V ,O AIL �' 7 AREA r� BLVD LO WILLOWS CENTER CONCORD 1961 AND 1975 DIAMOND BLVD CCCSD PROPERTY J APN: 126- 440 -003 (20) le 2 �IPA )�A 60 O LEGEND: ® LEASE AREA Y 'Central Contra Costa Sanitary DlstridDlstrid 55 QP ATTACHMENT 1 �P �Q zx / \ �z v� N 0 300 600 "mmmi-mm- MOM FEET DIAMOND BLVD LEASE AREA I I! ►e1 RESOLUTION NO. 2014 - A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF DISTRICT LAND AS CURRENTLY UNNEEDED AND AUTHORIZING THE GENERAL MANAGER, OR HIS DESIGNEE, TO EXECUTE A LEASE FOR A PORTION OF THE PROPERTY (APN 126- 440 -003) LOCATED ADJACENT TO 1975 DIAMOND BOULEVARD, CONCORD WHEREAS, the District owns the property located adjacent to 1975 Diamond Boulevard, Concord, as shown in Exhibit A - Map (Property), a portion of which is currently leased by Willows Center Concord, LLC (Willows); and WHEREAS, the Property is more specifically identified as a portion of APN 126 -440- 003; and WHEREAS, a portion of the Property has been leased to Willows for ten years; and WHEREAS, the Board of Directors held a noticed public hearing on November 6, 2014, to determine whether the proposed lease of the Property would be compatible with District activities and functions, and would provide a public benefit. THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: 1. That, after holding a noticed public hearing, the Board of Directors finds that the Property is currently unneeded for the performance of the District's purposes, functions, and duties. Furthermore, the Board of Directors finds that the proposed lease for the Property is compatible with the District's activities and functions. 2. That, after holding a noticed public hearing, the Board of Directors finds that the lease of the Property would provide a public benefit by generating funds for the District's duties and functions. 3. That the General Manager is authorized to execute a lease or lease amendment with Willows for a term not to exceed ten years. 4. That the proposed lease is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301, since it involves leasing an existing public facility of use. 5. That each portion of this resolution is severable. Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect. Resolution No. 2014- Page 2 of 2 Central Contra Costa Sanitary District 6. THAT staff is authorized to record the documents in the office of the Recorder of Contra Costa County. PASSED AND ADOPTED this 6th day of November, 2014, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members ABSENT: Members: David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District Resolution No. 2014 - Page 3 of 3 EXHIBIT A Central Contra Costa Sanitary District