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HomeMy WebLinkAbout07. Set Public Hearing for October 3, 2024 at 2:30 p.m. to authorize General Manager to execute a lease agreement for 1961 and 1975 Diamond Blvd., Concord (The Willows Center) assessor's parcel No. 126-440-003 for ten yearsPage 1 of 3 Item 7. DCENTRALSAN MEETING DATE: SEPTEMBER 5, 2024 BOARD OF DIRECTORS POSITION PAPER SUBJECT: SET PUBLIC HEARING FOR OCTOBER 3, 2024AT2:30 P.M. TO RECEIVE COMMENTS AND CONSIDER AUTHORIZING THE GENERAL MANAGER, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT FOR A PORTION OF THE PROPERTY LOCATED AT 1961 AND 1975 DIAMOND BLVD., CONCORD (COMMONLY REFERRED TO AS THE WILLOWS CENTER CONCORD, LLC)ASSESSOR'S PARCEL NO. (APN) 126-440-003 FORA PERIOD NOT TO EXCEED TEN YEARS AND DECLARE THE PROPERTY AS UNNEEDED FOR THE TERM OF THE LEASE AGREEMENT SUBMITTED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER INITIATING DEPARTMENT: ENG-PDS-DIVISION MANAGER REVIEWED BY: GREG NORBY, DEPUTY GM - OPERATIONS AND ENGINEERING Roger S. Bailey Leah Castella General Manager District Counsel ISSUE The Board of Directors (Board) must conduct a public hearing to declare the land as unneeded per Health and Safety Code Section 6514.1(e) and authorize staff to execute a lease agreement on this land. The Board should include in its Resolution authorizing the lease agreement a finding that pursuant to Senate Bill 747 and Assembly Bill 480, the Surplus Land Act does not apply to leases of 15 years or less (including any renewal options). September 5, 2024 Regular Board Meeting Agenda Packet - Page 24 of 66 Page 2 of 3 BACKGROUND Central San owns in fee a 20-foot wide strip of land that extends for approximately 1,464 feet through which Central San's existing 72-inch diameter A -Line Interceptor passes. This fee strip is located between the Willows Shopping Center in Concord and Interstate 680, located at 1961 and 1975 Diamond Blvd., Concord, on AP 126-440-003 (map attached) and is comprised of approximately 29,280 square feet. The property has been leased to Willows Center Concord, LLC since January 1983 for the use of a parking and landscaping area at the current annual rental rate of $20,433.15. Central San declared the property unneeded for ten years on November 4, 2014. To enter into a new lease agreement with a term not to exceed ten years, the Board must declare the land currently unneeded for Central San's purposes, functions, and duties. ALTERNATIVES/CONSIDERATIONS The Board may decline to establish the recommended public hearing date or may elect to choose a different date; however, a public hearing must be held, and the property must be declared as "currently unneeded" if the property is to be leased. FINANCIAL IMPACTS Leasing Criteria Item No. 3 of Board Policy BP 043 — Buffer Property Management states that "Market lease rates or a comparable public benefit shall be charged to provide additional revenue to Central San and its ratepayers." A ground lease rental survey was recently completed, and an annual lease rate established. COMMITTEE RECOMMENDATION The setting of the public hearing date was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Set a public hearing for October 3, 2024 at 2:30 p.m. to consider authorizing the General Manager, or designee, to execute a lease agreement for the property commonly known as Willows Center Concord, LLC (APN 126-440-003) for a period not to exceed ten years, and declare the property as unneeded for the term of the lease agreement. Strategic Plan re -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Location Map September 5, 2024 Regular Board Meeting Agenda Packet - Page 25 of 66 CENTRALSADiamond Blvd Lease Area N Deta i I Area �� Concord �\\O Pleasant Hill 04' � � a► �� `cif � � � � o Willows Center Concord; LLC 1961 and 1975 Diamond Blvd - Central San Property A Portion of \ APN 126-440-003 (20' Wide) Page 3 of 3 ATTACHMENT 1 Map Date: 8/16/2024 a' 1 WIN :Lease Area Note: * 0 300 600 Map Displayed in North American Datum of 1983 Attachment Central San data as of August 2024. © Feet California State Plane, Zone III FIPS O403, US Feet MAP September 5, 2024 Regular Board Meeting Agenda Packet - Page 26 of 66