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Home My WebLink AboutAgenda Report - November 19, 1986 (62)� Y „� ae.>is.-ai6,C z,^fe-z4°'. h"Po"v 3.... ".K.^ ak4"+. _ <., e... �rY£,eY'rv..:wr E^ 'nF�...—. Y3:tC�h'r'-.A. .+ris'e✓mr.....,...._. .. .. ......... ...- ..., _ _ .. ...:_ .x,..e.. ..-w_. AGREEMENT WITH SOUTHERN PACIFIC �< COMPANY APPMVEC` CITY,COtTIdCIL, MEETING f �- � Y „� ae.>is.-ai6,C z,^fe-z4°'. h"Po"v 3.... ".K.^ ak4"+. _ <., e... �rY£,eY'rv..:wr E^ 'nF�...—. Y3:tC�h'r'-.A. .+ris'e✓mr.....,...._. .. .. ......... ...- ..., _ _ .. ...:_ .x,..e.. ..-w_. AGREEMENT WITH SOUTHERN PACIFIC TRANSPORTATIC:? COMPANY APPMVEC` For the past 32 years the City of Lodi has leased from the Southern Pacific Transportation Company for public parking CC -6 the lot on Sacramento Street between East Pine and East Elm CC -7 (h) streets. There have been just two adjustments to the initial '> annual rental fee of $240 during this period. For the past 12 years, the annual rental fee has remained at $650. Several months ago, Southern Pacific advised the City that the current fee was substantially below market, and that an . adjustment to $3,500 per ,year, was appropriate. The Public - Works Director was directed to contact two local realtors in an effort to determine the market price for such a lease :n ` the downtown area. His discussion with the realtors resulted in staff agreeing that the requested annual lease payment is consistent with existing market conditions. Staff tried to ! negotiate a three-year lease and to expand the lease to include the additional unimproved area between the existing improved parking lot and East Pine Street. However, since Southern Pacific desires to maintain maximum. flexibility with respect to its ultimate development or disposition of this f' property, these positions were riot attainable. } Council approved the lease agreement for use of the Southexn 1 F Pacific parking lot and authorized the City Manager and City ); Clerk to execute the subject agreement. d - t' br r� n 0 U CIL COMMUNICATIO ;' TO._ THE CITY COUNCILDATE: ]9,-1986. NO FROM THE -,CITY MANAGER'S OFFICE .. , November, } SUBJECT'TEASE AGPEEMENT FOR USE OF SOUn-,IERN PACIFIC PARKING IAT Y S PREPARED BY: City Manager RECUVENDED ACTION: That the City Council authorize the City Manager to execute on behalf of the.City of Lodi a Letter • Agreement (L'xhibit A) with the Southern Pacific Y>. Transportation Company providing : for the City's; lease of the parking ;lot on,-,. r' t• Sacramento Street between E. Pine and E. Elm streets.'. ' Y BACKGROUND INFORMF,TION: For the past 32 years the City of Lodi has leased from the Southern Pacific Transportation Ccopany for public kin publ� parking the lot on Sacramento Street ° between E. Pine and E. Elm streets. There have been just two adjustments to the =j initial annual rental fee of $240 during this period. For the past;12 years, -: the annual rental fee has remained at $650. Several months ago, Southern ` Pacific advised the City that the current fee was substantially below market, }.y and that; an adjustment ,to $3, 500; per year was appropriate. The Public Works a;.4 -� .. - Director was directed to contacttcao local realtors in an effort to determine r ,�t the market price for such a lease in the downtown area. His discussion with t, the realtors resulted in staff agreeing that the requested annual lease payment is consistent with existing market conditions: Staff tried to negotiate a . ; three-year lease and to expand the lease to. include the additional unimproved area between the existing improved' parking lot and E.. Pine Street. However, t since` Southern Pacific desires. to maintain maximum flexibility with respect to its ultimate developr. nt or disposition of this:;Property,.these'.positions were r not attainable. . Respectfully submitted, G F -`' Thomas A. Peterson City Manager TAP:br COUNC108 is CITY COUNCIL FRED M. REID. Mayor s EVELYN M. OLSON Mayor Pro Ternpore DAVID M. HINCHMAN JAMES W. PINKERTON, Jr. JOHN R. (Randy) SNIDER Southern Pacific Transportation Cmipany 5110 Fast Clinton Way, Suite 117 Fresno, CA 93727 Gentlemen: THIS LEITER AGRFETJEVT, executed this 19th day of November, 1986 , by and between SOUTHERN PACIFIC TRANSPORTATION COMPANY, a corporation, first party, hereinafter to ned "Railroad", and. CITY OF - LODI, a municipal corporation of the State of California, second party, herein tented "Lessee". 1. WHEREAS, Railroad and Lessee entered into a certain lease dated April 30, 1954, whereunder Railroad leased to Lessee a certain parcel of land at Lodi, San Joaquin County, California, in the location more particularly indicated on the print attached thereto and made a part thereof, for parking of automobiles, whereby Lessee paid to Railroad, an annual rental fee of $240.00, payable in advance; and 2. WIMEAS, Railroad and Lessee entered into a supplemental agreement dated December 15, 1954, whereunder it was mutually agreed by and between the parties hereto to increase the area to be included in said lease more particularly indicated on the print attached thereto and made a part thereof, and whereby Lessee agreed to pay. to Railroad. an increas in the annual rental fee fora total of $485.00, payable in advance; and 3. WHEREAS, Railroad and Lessee entered into a supplemental aL3reement dated October 22, 1974, whereunder the parties hereto mutually agreed that the annual rental Lessee pays to Railroad, be increased to $650..00 per annum, payable annually in advance; and . 4. WHEREAS, Railroad gave Lessee notice via certified mail letter on June 11, 1986, that Railroad is increasing the rental amount frcm $650.00 per annum, to $3,500 per annum for the above-described leased Railroad property, said increase to beccme effective August 1, 1986 for a one year term to July 31, 1987; and 5. WHEREAS, said notice being given by Railroad falls under the terms of Section 8 of the Lease Agreemnt between Railroad and Lessee dated April 30, 1954, wherein the .existing lease is terminable by either party on.30-days written notice; NOW, THEREEiORE, the parties hereto do hereby agree to amend the aforesaid lease in that, effective August 1, 1986, and for a term of one year thereafter, rental for Railroad's premises, subject of S .K; x said recited lease as amended, shall be increased .to the scan of _ u: . Three ThousandFive Eiarbdre�d Dollars ($3,500.00) per:; annum;< payable f annually in, advance, from the. period. August, 1,.1986 to`July 31,' _ 1987.. i s 7. Except as herein 'otherwise provided, all terms and conditions of ► said recited lease dated April 30, 1954, as amended,- shall continue in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Letter Agreement to, be executed; in duplicate 'as, of the .:'day :,and..year first xa hereinabove written. CITY OF LODI, SOUTEUMq PACIFIC TRANSPORTATION a municipal -corporation COMPANY, successor by merger to ` SOUTHERN PACIFIC COMPANY, acorpo ration Y By E, '� THOMAS A. PETERSON CITY MANAGER By A;` i J. B. HORS' MAN Agent for Southern Pacific Transportation CaTpany ATTEST. ALIO M. REI14CHE CITY CLERK APPROVED AS TO FORM.:. 1' .. ". RONALD M. STEIN CITY ATTORNEY -2- �._ { hk• „�'N Tj's$�`9�.'f*a�`YF� ��'��.,7. y i»"'!w`] _ �,