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HomeMy WebLinkAbout05. Set Public Hearing for December 5, 2024 at 2:30 p.m. to receive comments and declare portions of 4737 Imhoff Place (APN 159-150-057) as currently unneeded, and authorize the General Manager or designee to execute lease agreementsPage 1 of 3 Item 5. DCENTRALSAN MEETING DATE: NOVEMBER 7, 2024 BOARD OF DIRECTORS POSITION PAPER SUBJECT: SETA PUBLIC HEARING FOR DECEMBER 5, 2024AT2:30 P.M. TO RECEIVE COMMENTS AND DECLARE PORTIONS OF 4737 IMHOFF PLACE (APN 159-150-057) AS CURRENTLY UNNEEDED, AND AUTHORIZE THE GENERAL MANAGER OR DESIGNEE TO EXECUTE LEASE AGREEMENTS FORA PERIOD NOT TO EXCEED TEN YEARS SUBMITTED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER INITIATING DEPARTMENT: ENG-PDS-DIVISION MANAGER REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS Roger S. Bailey General Manager ISSUE Leah Castella District Counsel 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 Contra Costa Sanitary District (Central San) owns approximately one and a half acres at 4737 Imhoff Place, just west of the Martinez Treatment Plant (Property). The parcel features a pre-existing, permitted warehouse structure with 11 loading bays that have been used many years for commercial and light industrial uses, storage, and loading and unloading uses in conformity with the local zoning code and land use regulations. Central San has utilized parts of the Property in accordance with its needs, which use varies from time to time, and leased the unneeded parts of the Property to obtain revenue for Central San. November 7, 2024 Regular Board Meeting Agenda Packet - Page 17 of 40 Page 2 of 3 The leased area to tenants is currently 7,974 square feet with three current tenants (Ferros Woodworking, Workman Glove, and AgLantis); Central San staff occupies 13,776 square feet within the warehouse building. To enter into new lease agreements with a term not to exceed ten years, the Board must declare the Property as currently unneeded for Central San's purposes, functions, and duties. This designation will allow staff to lease unneeded bays and generate market -rate income. 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 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. Agreements to leases on property owned by Central San typically include provisions to terminate leases if the property is ever needed for Central San's operations. 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 rental survey for the current market rental rate was completed by Dunn & Associates Real Estate Appraisers & Consultants on December 7, 2021, and a monthly lease rate was established for the current tenants. COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this matter at its meeting on October 15, 2024 and recommended setting the public hearing. RECOMMENDED BOARD ACTION Set a public hearing for December 5, 2024 at 2:30 p.m. to receive comments and declare portions of 4737 1 mhoff Place (APN 159-150-057) as currently unneeded, and authorize the General Manager or designee to execute lease agreements for a period not to exceed ten years. Strategic Plan re -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Location Map November 7, 2024 Regular Board Meeting Agenda Packet - Page 18 of 40 Page 3 of 3 Central San Property Management ATTACHMENT 1 On 4737 Imhoff Place Map Date9+30%2024 iQ Lease Number 0 Central San Operations Q Lease/Use Agreement a "I DW4 �1 W4�ti; { 1 C�7g 1 �� Dom] 9 o a � kv - - C 30 Sheet Note: Central San data as of November, 2021 This map is intended for property management reference purposes only- F��t 2 of 2 November 7, 2024 Regular Board Meeting Agenda Packet - Page 19 of 40