HomeMy WebLinkAboutAgenda Report - September 5, 1984 (79)r s�
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SMEMBER 5,` .19 1
RB4LM9r FRM
Council was apprised by City Clerk Reimche that for marry
9(LTIO N PACIFIC
years the City of Lodi has leased a parcel of land located at
M INCREASE RFAgr
the corner of Sacrwrnto and Elm Streets which parcel is used
CN PARKING L r
as a parking lot.
i BEIWEEN F.IM AND
PINE SI1tiEr
The City becanx- involved with the property through an offort
to solve a problem of mutual concern to the Southern Pacific
and the citizens of Lodi. the unsightly condition of the
property. The Southern Pacific Caq)any benefited from this
agreement by being re 1 i eved of the maintenance prof; l ems it
was experiencing with the property and the City justified the
expenditure of fuTAs to inprove the property on the basis
that the pubiie would receive some benefit by using the lot
for parking.
Over the years the mount of the yearly rental for the par -el
was negotiated to represent the approximate anourt of
property tax charged to the property. The City has. since
January 1. 1975, paid an annual rental of $650.00 for the
property.
Letters have been received from the Southern Pacific Land
Caipany proposing that the rental for this prc.;)erty be
increased to $1,950.00 per annum effective October 1. 1984
and to $3.500.00 per annum effective October 1. 1985. I? is
further proposed that all othe, terms and conditions of the
lease remain the same.
City Manager Gloves gave additional information regarding the
matter arni resporAed to questions.
A lengthy discussion followed with questions regarding the
subject being directed to Staff. On motion of Council Member
Olson. Hirschman second. Council referred the matterr to Staff
for review and recom nidation.
TO THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
SUBJECT: Southern Pacific I.ancl O pany Request to increase rent on parking lot
between Elm and Pine Street
CC;ZNCIL COA' MUNICATION40
DATE 1NO.
August 31, 1984
For many years t l;.^ City of Lodi has lensed it parcel of land located at the
eornr)r of Sneramento and trim Streets which parcel is used as it parking lot.
nw City became invo, vee with the prolwrty through an effort to solve a
prob 1 en of rtu t ua 1 concern to the Southern Pai c i f i c and the c. i t i zens of Lodi. the
unsightly condition of the property. 'rhe Southern Pacific Carpany benefited
f ran this agreement by tieing re 1 i evcr<i of the rrri i nt enance prob l erns it wr+s
expo r i enc i ng with the p rce re r t y and the Cit y justified the c r xpend i t ure of fur ds
to improve the property on the basis that the public would receive sane benefit
by using the lot for parking.
Over the years the w-ount of the yearly rental for the parcel was negotiated to
represent the approximate wynint of property tax charged to the property. The
City has, since January 1, 1975, paid an annual rental of $656.00 for the
p:r%p rty.
I.e t t e rs have been received from the Southern Pa c i f i c l.ruxi Conpany proposing t ha t
the rental for this property be increased to $1,950.00 per annizn effective
October 1, 1984 and to $3,500.00 per rrruiun effective October 1, 1985. It is
further proposed that all other terms and conditions of the lease rertAin the
Same.
t—
7%11ce N. Rei niche
City Clerk
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soudlem
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Lord �otnpa��vQ4 Ath 21 M 8- 42
5108 L Clinton way • Suite US • Freak California 93727 • (M 453.9232
REAL ESTATE ALICE M. Nt-tiMCHE
CIT Y CLERK
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August 20, 1984 Lodi -City of Lodi -LT
U. S. CERTIFIED MAIL
The Hc,norable Fred M. - eid
Mayor's Office
City of Lodi
221 West Pine Street
Lodi, CA 95240
Dear Mayor Reid:
In May, ;southern Pacific paid it's assessment for the
Downtown Beautification Project and has recently granted the
City of Lodi a Beautification Easement free of charge.
By letter of March 2, 19e3, copy attached, we indicated
rental under the existing City parking lease is considerably
low and feel it should be increased. I propose that the rental
under Lease Audit No. 104126 be increased to $1,950 per annum
effective October 1, 1984, and to $3,500 per annum effective
October 1, 1983. All other terms and conditions of the lease
will remain the same and our billing records will be changed
accordingly.
I trust the City can understand the necessity of this in-
crease in rental.
Very truly yours,
Attachment
6outhem Rmofir,
Y
I MW C=np=r3F
Scuftffl Pad eurlding . one Atoka! Wase . San Francisco. Caii}aania 94105 • (415) 511-1000
REAL ESTATE
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March 2 1983
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The Honorable Fred Reid
Mayor's Office
City of Lodi
22 West Pine Street
Lodi, CA 95240
Dear Mayor Reid:
As you know, we have been pleased to discuss with the Downtown Development
task fcrce the Cit; of Lodi's plans for a broad improvement program that will benefit
downtown commerce and the community as a whole.
We are carefully considering the inclusion of our station property, Including
17,490 square feet now used by the City for parking.
The parking arrangement is covered by a toker, lease of $650 per annum, which
just about offsets the tax we pay on the property. This rental has not changed since
1975 and is far below fair rental value.
As we become more involved in the City's plan for downtown development, we
feel that use of our property should appropriately produce some benefit beyond a tax
offset and provide a reasonable rate of return. :Whether or not an improvement
district moves forward, we feel the property now used by the City for parking should
rent for more than $7,000 per annum. We recognize the City may not wish to
underwrite that amount for public parking, but we have been offerini; this community
assistance since 1954.
As an Interim measure, we ws.nt to kscrease the rental on a graduated besis to
brim the lease cheer to an appropriate return; 4:1,950 per annum for 1984, only a 3.7
percent return, and $3,500 in 1985.
In accord with our discussions with the downtown improvement task force, we
will do all we can to promote commercial development of our property.
Will the City please say if this new rental schedule for the leased parking area
Is acceptable.
Sincerely,
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0010TANT YA'NAfa/. *RAJ, //TAte
C. W. JONN/OM
A.N.TANT TO YAIY../, *.AL //TAT/
�oUthem R=MC
Land Company
One Market Street A San Franclsc% California 94103 • (413) 362-1212
REAL ESTATE
October 22, 1974
City of Lodi
City Itill
221 West Pine Street
Lodi, California 95240
Attn: tris. Alice M. Reimche, City Clerk
Gentlemen:
/N N/ILT eblA.a N/I// TO
TO. I i woT
Please refer to your letter dated October- 21, 1974, regarding Southern
Pacific. Transportation Company Lease Audit No. 104126 which covers premises
located at Lodi, California, for public parking purposes.
Attached is a fully executed counterpart of supplemental agreement to
the above lease increasing rental to $6S0 per wu= t: ective Jaauary 1, 1975.
If you have any questions in this matter, please contact Mr. J. B. Horstman
of AW staff on extension 21109.
Sincerely* yosr*,
�djtI4�act"(-,
Attachment
MKJ
t Shu . k, d a••r r . .. .,
THIS SUPPLEMENTAL AGREEMENT, elated this 22nd day of
October I %4 , by and between SOUTHOONPACIFIC TRANS-
PORTATION COMPANY, successor by merger to SOUTHERN PACIFIC COMPANY,
a corporation. herein called "Railroad", and CITY OF LODI, a
N icipal corporation of the State of California,
- - - - - - - - - - - - - - - - - - - - herein called "Lessee";
RECITALS:
Predecessor in interest to Railroad and Lessee _
entered into that certain lease dated the 30th day of
as amended by agreement dated December 19, 1954,
April , 1954 ,/whereby Railroad leased to Lessee
a certain potion of Railroad premises located at or near
Lodi County of Sari Joaquin
State of Californ" , as illustrated on the
print attached thereto for the purposes therein specified.
again
The parties vsWdesire to amend said lease as herein-
after provided.
AGREEMENT:
Effective the lot day of January 1973 , rental for
" as wale d •
Railroad's premises, subject of said recited lease, Ahall be in-
creased to the sum of Six Hundred Fifty
Dollars ($00.00 ) per aanuaa, payable annua Uy in aftancte.
Except us herein otherwise provided, all texas and conditions
of said recited lease shall continue in full force and effect.
artied hereto have eased
IN WITNESS WHEREOF, the
p � this supple- _
to be executed
mental agreementlin duplicate as of the day and year first hereinabove
written.
SOUTHERN PACIFIC TRANSPORTATION
COMPANY, successor by merger to
SOUT4$RN PAC441C COMPANY,
By I ]
C. W. Jok P4 46e
�I'i'Y LODZ i
VA, M.,
AV
CITY COUNCIL
)OHN R (Randv) SNIDER. Mavor
DAVID M HINCHMAN
Mavor Pro Tempore
EVftYN M WON
IAMfS W PINKERTON. It
ERFD M REID
CITY OF LORI
CITY HALL, 221 WEST PINE STREET
POST OFFICE- BOX 320
LODI. CALIFORNIA 95241
(209) 334-5:,34
September 6. 1984
Southern Pacific Land Comp"ny
5108 E. Clinton Way, Suite 118
Fresno, CA 93727
Attention: J. B. Horstman, District Manager
Re: Lodi -City of Lodi -LT
Dear Mr. Horstman:
HENRY A GLAVES. it
C 1tv Manager
MICE M REiMCHf
City Clerk
RONALD M STEIN
City Attorney
The City of Lodi is in receipt of your August 20, 1984 letter
proposing a rental in,�rease to the City of Lodi, for the use of
Southern Pacific Land Company's parking lot between Elm trod
Pine Street, increasing from the pr -sent $650 per annum rental,
to $1,950 per annum rental, effective October 1, 1984 and to
$3,500 per annum rental, effective October 1, '.985.
1 was directed by the f-ity Council to contact your office to
disct3ss the possibility of entering into a long term lease for
said premises. I understand that we did sign the lease in
1954, however, the Council is concerned that, at a minimum, we
should rev{se and update said lease..
Further, it was the :Council's thought that we should explore
the possibility of having a 5 -year lease. As you are aware,
the City, as a municipality. must concern itself with
long-range budgetary planning, and Council felt it would be
prudent for us to know what we ar,- looking at in costs o�rer a
5 -year period as far as rental of this particular parcel.
A second area that the Council asked me to pursue with Southern
Pacific Land Company is the possibility of the City using the
subject property for permit parking for a fee, and whether
there are any constraints that your Company is aware of to
prevent doing same under our present lease.
In view of the above, I would appreciate your contacting me at
your earliest convenience so that we can begin discussion
regardii,g this matter.
Sincerely yours,
RONALD 111. STE IN
CITY ATTORNEY
Ri1IS :. v c
�QC '
CITY COUNCIL
JOH*t R. (Rar0y) SNIDER. Mayor
DAVID M. HINCHMAN
Maya Pro Tempore
EVELYN M. OLSON
JAMES W PINKFRTON. It
FRED M REID
CITY 0 LODI
CITY HALL. Til WEST PINE STREET
POST OFFICE BOX 320
LODI. CALIFORNIA 95241
(209)334-5534
Septet-ber 10, 1984
t_';
HENRY A. GLAVES. It.
City Man&$"
ALICE M. REIMCHE
City Clerk
RONALD M. STEIN
City Attomev
Mr. J. B. Horstman
District hbnager
Southern Pacific Land Caq>any
5108 East Clinton Way, Suite 118
Fresno, Q& 93727
Dear Mr. Horstman:
Please be advised that your letter concerning a proposed increase of
the lease of a parking lot that the City has leased for a period of
years was presented to the Lodi City Cameo at its regular meeting of
September 5, 1984. A lengthy discussion followed regarding this
proposed rental increase and the Ctxau:il referred the matter to Staff
for nevi e`s and recarnrenda t i on.
We will keep you apprised as to the developments in this request.
Should you have any questions regardinC the matter, please do not
hesitate to call this office.
Very truly yours.
&&t' ;k - omwZ_'..'
Alice M. Reimche
City Clerk
MR: j j
Y��.'�A��'uM"'l� ?d �p r �f+: �r����S'r TYa��!i`dT�rhui'fifw i,d:ra.•. .i' .: ,�. � .: .. ,Y . ,�i _. �. �.:�.�.,���f
. �•:r.:.., i�.�i a..:�.. o•�.,.- sofa.:t�.ID. +i+..iJr�vwa..�awiswwa::+rr3ax. �6�i<c ....'•rwaaa<..
CITY COUNCIL HENRY A CLAVES 1.
City Mana{er
JOHDAVID M. HINCMMAIV R. (Randy) SNIDER, Maya CITY O F L O D I ALICE M. REIMCHE
DAVI
Mayor Pro Tempore CITY HALL. 221 WEST PINE STREET City Clerk
EVELYN M OLSON POST OFFICE BOX 32.i
RONALD M. STEIN
LAMES W PINKERTON, Ir LODI, CALIFORNIA 95241 City Attorney
FRED M REID (209) 334-5634
September 10, 1984
Mr. J. H. Horstman
Dlstrtct Manager
Southern Pacific band Company
5108 East Clinton Way, Suite 118
Fresno, CA 93727
Dear Air. Horstman
Please be advised that your letter concerning a proposed increase of
the lease of s parking lot that the City has leased for a period of
years was presented to the Lodi City Commit at its regular meeting of
Septwber 5, 1984. A lengthy discussion followed regarding this
propesod rental increase and the Council referred the matter to Staff
for review and recciurm dation.
We will keep you apprised as to the developmnts in this request.
Should you have any questions regarding the matter, please do not
hesitate to call this office..
Very truly yours,
&&�;k . IOMC4�
Al ice M. Re id -1w
City Clerk