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HomeMy WebLinkAbout03.a. Draft Position Paper to conduct a Public Hearing on October 3, 2024 2:30 p.m. to declare a portion of 1961 and 1975 Diamond Blvd. Concord (The Willows Center APN 126-440-003) as un-needed and authorize lease agreementPage 1 of 5 Item 3.a. DCENTRALSAN MEETING DATE: SEPTEMBER 12, 2024 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO CONDUCTA PUBLIC HEARING ON OCTOBER 3, 2024 AT 2:30 P.M. TO CONSIDER DECLARI NG A PORTION OF CENTRAL SAN LAND LOCATED AT 1961 AND 1975 DIAMOND BLVD., CONCORD (COMMONLY REFERRED TO AS THE WILLOWS CENTER CONCORD LLC, APN 126-440-003) AS CURRENTLY UN -NEEDED AND AUTHORIZE THE GENERAL MANAGER, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT FOR A PERIOD NOT TO EXCEED TEN YEARS SUBMITTED BY: INITIATING DEPARTMENT: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER Lam9305111 REVIEWED BY: GREG NORBY, DEPUTY GM - OPERATIONS & ENGINEERING ROGER S. BAILEY, GENERAL MANAGER ISSUE The Board of Directors (Board) must conduct a public hearing to declare the land as unneeded and authorize staff to execute a lease agreement on this land. BACKGROUND Central San owns in fee a 20-foot wide strip of land that extends for approximately 1,464 feet through which the District'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 Assessor's Parcel No. 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. September 12, 2024 Special REEP Committee Meeting Agenda Packet - Page 3 of 26 Page 2 of 5 ALTERNATIVES/CONSIDERATIONS Agreements to lease land owned by Central San typically include provisions to terminate leases if the land is ever needed for Central San's operations. The Board may decline to establish the recommended public hearing date or may elect to choose a different date; however, if the property is to be leased, then a public hearing must be held to declare the property as "currently unneeded." FINANCIAL IMPACTS A ground lease rental survey was conducted by a real estate appraiser, Dunn & Associates on June 7, 2024, showing the annual market rent value as $33,000. This is an increase of just over 61 percent from the current rate of $20,433.15. The lease will also reflect an annual escalation clause of four percent. COMMITTEE RECOMMENDATION The Real Estate, Environmental, and Planning Committee reviewed this matter at its meeting on September 12, 2024, and RECOMMENDED BOARD ACTION Adopt the proposed Resolution declaring a portion of Central San land located at 1961 and 1975 Diamond Blvd., Concord (commonly referred to as the Willows Center Concord LLC, APN 126-440-003) as currently un-needed and authorize the General Manager, or Designee, to execute a Lease Agreement for a period not to exceed ten years. 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 2. Resolution September 12, 2024 Special REEP Committee Meeting Agenda Packet - Page 4 of 26 CENTRALSADiamond Blvd Lease Area N Deta i I Area �� Concord �\\O Pleasant Hill 04' � � a► �� `cif � � � � o Willows Center Cocord; LLC n 1961 and 1975 Diamond Blvd - Central San Property A Portion of \ APN 126-440-003 (20' Wide) Page 3 of 5 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 12, 2024 Special REEP Committee Meeting Agenda Packet - Page 5 of 26 Page 4 of 5 Attachment 2 RESOLUTION NO. 2024-XXX A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF DISTRICT LAND UNNEEDED AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE A LEASE OF THE PROPERTY LOCATED AT 1961 AND 1975 DIAMOND BLVD., CONCORD, COMMONLY KNOWN AS WILLOWS CENTER CONCORD WHEREAS, the Central Contra Costa Sanitary District ("District") owns the property located at 1961 and 1975 Diamond Blvd., Concord, as shown in Exhibit A - Map ("Property"), which is currently leased by Willows Center Concord, LLC ("Willows Center"); and WHEREAS, the Property is more specifically identified as a portion of APN 126-440- 003; and WHEREAS, the Property has been leased to Willows Center pursuant to a lease that expires on , 2024; and WHEREAS, Willows Center, is interested in entering into a new lease with District for the Property for a term of ten (10) years; and WHEREAS, the Board of Directors held a noticed public hearing on September 5, 2024, to determine whether the proposed lease of the Property would, among other things, be compatible with District activities and functions, and provide a public benefit. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of District as follows: 1. After holding a noticed public hearing, the Board of Directors finds that, as described in Health and Safety Code Section 6514.1, the leasing of the Property (a) is compatible with District's activities and functions, (b) will provide a public benefit by generating funds for District's duties and functions, and (c) is currently unneeded for the performance of District's purposes, functions and duties for a period not to exceed ten (10) years, 2. Pursuant to California Government Code Section 54221(d)(2)(A), the entering into a lease for surplus property for a term of fifteen (15) years or less (including extensions and renewal options) does not constitute a disposition of land governed by the Surplus Land Act. 3. The General Manager, or designee, is authorized to execute a lease for a term not to exceed ten (10) years. 4. The proposed lease of the Property is exempt from the requirements of the California Environmental Quality Act (CEQA) under District CEQA Guidelines §15301, since it involves leasing an existing public facility use. September 12, 2024 Special REEP Committee Meeting Agenda Packet - Page 6 of 26 Page 5 of 5 5. 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. PASSED AND ADOPTED this 3rd day of October, 2024, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members ABSENT: Members: Mariah N. Lauritzen President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: J. Leah Castella, Esq. Counsel for the District September 12, 2024 Special REEP Committee Meeting Agenda Packet - Page 7 of 26