HomeMy WebLinkAboutAgenda Report - November 19, 1986 (64)CITY COUNCIL MMTING � T
NOVEMBER 19, 1986
AGPTET T WITH
SOUTHERN PACIFIC
TRANSPORTATION
COMPANY APPROVED
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 I
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 in
the downtown area. His discussion with the realtors resulted
in staff agreeing that the requested annual lease payment is
consistent with existing market ccnditions. 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 developmnt or disposition of this
property, these positions were not attainable.