HomeMy WebLinkAbout4.a. Hold discussion on lease terms for AgLantis Lease renewal for CoCo San Sustainable Farm on Central San's Kiewit parcel Page 1 of 6
Item 4.a.
CENTRAL SAN
Y-109-ITMEN ME
August 23, 2022
TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE
FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: KENTON L. ALM, DISTRICT COUNSEL
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: HOLD DISCUSSION ON LEASE TERMS FOR AGLANTIS LEASE
RENEWAL FOR COCO SAN SUSTAINABLE FARM ON CENTRAL SAN'S
KIEWIT PARCEL
In late January 2022, Dr. Carolyn Phinney sent an email requesting the start of negotiations for an
extension to the AgLantis Lease Agreement (Attachment 1)for the CoCo San Sustainable Farm (Farm).
Currently AgLantis has a lease that extends until April 16, 2024, for 14.8 acres on the western side of the
Kiewit parcel with a 10-year term that expires on April 16, 2024. The lease amount is $1 per year and
includes recycled water, to help support Central San's mission to foster sustainable and renewable
practices, including recycled water. Dr. Phinney would like to extend the lease with the previous terms.
On June 16, 2022, the Board held a discussion related to the request to extend the lease for an additional
ten years and directed the Real Estate, Environmental & Planning Committee (RE EP) review the lease
terms and conditions, address any questions, and provide a recommendation for Board consideration at a
future Board meeting. All Board Members concurred.
Member Pilecki requested the following information to be included for the Board's consideration of a future
lease:
1. A market lease appraisal was performed by Dunn and Associates in July 2020 on the Kiewit parcel and
estimated that the 14.8-acre parcel is valued at$21,490 per month or an annual lease value of $257,880.
2. The farm started using recycled water in 2018 for farming. The annual value of the water is calculated
using the Recycled Water Class I I Rate for previous untreated water sources.
Year Volume (Gallons) Class II - Value of
Former Recycled Water
Untreated
Water (per
1000 gal)
2018 958,539 $ 1.71 $ 1,639
2019 591,368 $ 1.76 $ 1,041
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2020 11116,938 $ 1.81 $ 2,022
2021 2,421,297 $ 1.86 $ 4,504
2022 1,266,202 $ 1.92 $ 2,431
(through June)
TOTAL $ 11,637
Member Hockett requested that information to be included regarding the various and valuable
opportunities the Farm brings to build public and private partnerships throughout Contra Costa County.
3. AgLantis has partnered with Contra Costa/Solano Food Bank, Mount Diablo High School (Cindy
Gershen's Nutrition Program), Diablo Valley College, Contra Costa County Resource Conservation
District, Xerces Society, Eco Mulch, White Pony Express, Sustainable Contra Costa, Mount Diablo
Unified School District, County Quarry,AgraTech, and Milani Engineering to name a few.
4. Volunteers came from a number of organizations including California Conservation Corps, Walnut
Creek Boys Team Charity, De LaSalle High School, and a number of families and regular volunteers
throughout Contra Costa County and the Silicon Valley.
Central San's Buffer Property Management (Attachment 2) notes that comparable public benefit can be
considered as a Lease Criteria and that "Other Public Agencies, then non-profits needs shall be given priority
for temporary uses over private entities". AgLantis is a 501c(3)which meets this criteria and has demonstrated
the public benefits from its efforts.
Extending the Farm lease for any additional time will require a hearing to declare the property as unneeded
for a period up to ten years. The full 33-acre Kiewit site has typically been leased in the last ten-years for
transitional uses that can be vacated in a reasonable time should Central San find a need for the property.
Once lease terms are finalized and staff has a recommendation for the Board's consideration a hearing
will be scheduled to consider the future of the property.
Section 2.1 of the AgLantis Lease states "...the District will have the right to terminate this lease and
Agreement as to any or all portions of the Premises, if the District Board declares the same to be
required for public use. If such a determination of the need for public use of the Premises is made, this
Lease shall be subject to cancellation and termination by the District at any time thereafter by giving
Tenant notice in writing as soon as possible, but at least one year prior to the date such termination
shall become effective."
Staff confirmed with Dr. Phinney that this remains a consideration since the Kiewit site could be utilized in
Central San's initiative to provide direct potable reuse to augment the regional water supply. Dr. Phinney
noted that the concept of the Sustainable Farm is proof it is replicable and can be located on any public
lands to help the community if Central San needs the property.
There are several options that may be considered with respect to the lease renewal:
1. Extend for ten years on 14.8 acres with no change in terms.
2. Extend for five years on 14.8 acres and an option for an additional 5 years, with no change in terms.
3. Extend for ten years on 14.8 acres, with adjusted lease rate, such as $1 per year plus the cost of
recycled water.
4. Extend for ten years on some lesser acreage than 14.8 acres with no change in terms.
5. Do not extend lease.
6. Any other options not presented herein.
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ATTACHMENTS:
1.AgLantis Request for Lease Renewal dated January 30, 2022
2. Board Policy No. BP 043 - Buffer Property Management
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ATTACHMENT 1
Danea Gemmell
From: carolynphinney@comcast.net
Sent: Sunday, January 30, 2022 9:05 AM
To: Danea Gemmell
Subject: Lease Renewal
Dear Danea,
AgLantis would like to start the process of renewing our CoCo San Sustainable Farm lease. The next
few years will be very exciting and securing a renewal is important before we move forward.
We are now working with the NRCS/USDA on a federal grant to build 5 more hoop greenhouses to
grow our most vulnerable crops in greater protection. We hope to secure this funding this spring. We
are also applying for federal funding for hedgerows and trees that will protect the farm from wind and
bring more pollinators.
The USDA is also helping us plan our irrigation system extension to be sure we have enough
pressure for the whole design.
As you know, AgraTech in Pittsburg donated a 144' X 42' hydroponic greenhouse and we have finally
received approval from Contra Costa County Public Works and CoCoCo Fire. We still need approval
from the Building Department, but we are making progress! This is a HUGE project that involves
bringing PGE to the farm and so much more. We would like to have our lease renewal in place before
we make these investments.
Finally, we are exploring replicating the farm on another sanitary/sanitation district. CoCoCo has other
districts who have expressed a desire to replicate and contribute to our goals:
Food Equity, Education, Environmental Protection and Economic Development and Job Training
(Internships for disadvantaged youth).
Please let me know what I can do to facilitate this process. We had 35 volunteers, ages 3 to 70s, at
the farm this Saturday and we are so excited about how much momentum we have created for this
farm being a wonderful community builder and for our families. Volunteers came from John Muir
Health, a local builder, local high schools, California Conservation Service, Google, a local
architecture firm, Walnut Creek Boys Team Charity, Sustainable Contra Costa and more. It's
particularly great that everyone can work outdoors, during this public health crisis. Most of our
volunteers live in the Central San service district and are receiving unique benefits from their sanitary
district.
Thank you so much for all your help over the years!
Carolyn
Carolyn Phinney, Ph.D.
President,AgLantis (501 c-3)
www.Salads4Schools.org
925-788-7374
1
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Attachment 2
Number: BP 043
Authority: Board of Directors
Effective: April 15, 2021
Revised: A90k
Reviewed: R
ALSAN
Initiating Dept./Div.: Engineering/Planning & Development
BOARD POLICY
BUFFER PROPERTY MANAGEMENT
PURPOSE
To provide guidance for management of Central San's buffer properties for prospective and
existing tenants. This policy is for buffer properties that are located between the treatment
plant and the surrounding properties not owned by Central San. Leasing criteria and
prioritization will be utilized for any unneeded buffer property that is proposed for lease to
others.
POLICY
It is Central San's policy to obtain and manage buffer property around the treatment plant to
avoid incompatible land uses with Central San and surrounding properties, and minimize
disturbances such as noise and odor, to the community. In applying this policy, Central San
shall review all District-owned property, every five years at a minimum, to determine the need
and use thereof, including if the inventory is best served as a source of lease revenue.
Central San will maintain a priority for its own use to operate and maintain the sanitary sewer
system and wastewater treatment and disposal facilities. Central San will then prioritize
prospective projects interested in leasing a buffer property that enhances Central San's vision,
mission, and purpose over those projects that do not relate to wastewater. The Board of
Directors can modify this policy on a case-by-case basis.
LEASING CRITERIA
For leasing the unneeded real property, Central San will comply with Health and Safety Code
§6514.1. The following factors will be taken into consideration when evaluating new lease
proposals for buffer properties.
1. Land use must be compatible with Central San's and surrounding property owner's
land use. (All leases shall include clauses allowing Central San to request
termination, if the Board declares property is needed for public use.)
2. Adherence to all applicable laws, rules, regulations, and permits.
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Number: BP 043
BUFFER PROPERTY MANAGEMENT
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3. Market lease rates or a comparable public benefit shall be charged to provide
additional revenue to Central San and its ratepayers.
4. Other Public Agencies, then non-profits needs shall be given priority for temporary
uses over private entities.
5. Public and surrounding property owner's acceptability and aesthetics.
6. Avoid potential for adverse environmental impacts, such as hazardous material spills
or traffic congestion.
7. Financial stability to pay rent timely and address needed environmental cleanup,
infrastructure, or necessary improvements.
8. Housekeeping performance of existing tenants.
9. Lease terms shall be up to 10 years and all terms of Health and Safety Code §6514.1
shall be met.
10. References and background checks.
[Original retained by the Secretary of the District]
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