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HomeMy WebLinkAbout09. Hold public hearing to consider adopting Resolution No. 2024-039 declaring Central San property located at 1961 and 1975 Diamond Blvd., Concord (the Willows Center APN 126-440-003) as unneeded and authorize the General Manager to execute a leaseO��ENTRAL S. MEETING DATE: OCTOBER 3, 2024 BOARD OF DIRECTORS POSITION PAPER Page 1 of 5 Item 9. SUBJECT: HOLD PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION NO. 2024-039 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 UNNEEDED AND AUTHORIZE THE GENERAL MANAGER, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT FOR A PERIOD NOT TO EXCEED TEN YEARS SUBMITTED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER INITIATING DEPARTMENT: Lam[ ' ■ X930511 •y[�7���/_\�/_�e7 7 REVIEWED BY: GREG NORBY, DEPUTY GM - OPERATIONS & ENGINEERING y 14 W - 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 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 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 ("Property"), on Assessor's Parcel No. 126-440-003 (map attached) and is comprised of October 3, 2024 Regular Board Meeting Agenda Packet - Page 79 of 108 Page 2 of 5 approximately 29,280 square feet. The Property is currently leased to Willows Center Concord, LLC, for the use of a parking and landscaping area at the current annual rate of $20,433.15, and the unneeded declaration expires on November 3, 2024. To enter into a new lease agreement with a term not to exceed ten years, the Board must declare the surface land rights as currently unneeded for Central San's purposes, functions, and duties. CEQA 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. 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 approval. RECOMMENDED BOARD ACTION Hold public hearing; adopt Resolution No. 2024-039 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 unneeded and authorize the General Manager, or designee, to execute a lease agreement for a period not to exceed ten years. Strategic Plan Tie -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Location Map 2. Resolution October 3, 2024 Regular Board Meeting Agenda Packet - Page 80 of 108 Page 3 of 5 Diamond Blvd Lease Area ATTACHMENT 1 Map Date: 8/16/2024 t� Detail Area Concord��o ` Pleasant Hill A i a ' fill, 4. 011 Willows Center ..Cncord, ' 191 an75V ♦ Central °San,,Propert} A Portion o APN126-440-003 (20' Wide) �i 111\atl\11N \ 1 Lease Area V A / Note: * 0 300 600 Map Displayed in North American Datum of 1983 Attachment Central San data as of August 2024. © California State Plane, Zone III FIPS 0403, US Feet MAP Feet October 3, 2024 Regular Board Meeting Agenda Packet - Page 81 of 108 Page 4 of 5 ATTACHMENT 2 RESOLUTION NO. 2024 - 039 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DECLARING A PORTION OF CENTRAL SAN 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 ("Central San") 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 November 3, 2024; and WHEREAS, Willows Center, is interested in entering into a new lease with Central San for the Property for a term of ten years; and WHEREAS, the Board of Directors held a noticed public hearing on October 3, 2024, to determine whether the proposed lease of the Property would, among other things, be compatible with Central San activities and functions, and provide a public benefit; NOW THEREFORE, BE IT RESOLVED by the Board of Directors of Central San 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 the Central San's activities and functions, (b) will provide a public benefit by generating funds for Central San's duties and functions, and (c) is currently unneeded for the performance of Central San's purposes, functions and duties for a period not to exceed ten 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 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 years. October 3, 2024 Regular Board Meeting Agenda Packet - Page 82 of 108 Page 5 of 5 Resolution 2024-039 Central Contra Costa Sanitary District Page 2 of 2 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. 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, CMC 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 October 3, 2024 Regular Board Meeting Agenda Packet - Page 83 of 108