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HomeMy WebLinkAboutAgenda Report - August 5, 2020 C-13AGENDA ITEM c-l 5 Crrv op Lou Coulcrr CounruNrcATIoN TM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Authorizing City Manager to Execute Lease of City Property Located a1111 North Stockton Street August 5,2020 Public Works Director RECOMMENDED ACTION Adopt resolution authorizing City Manager to execute lease of City property located at 111 North Stockton Street. BACKGROUND INFORMATION: On May 20,2020, Staff requested Council direction regarding the lease for 111 North Stockton Street (CrossFit Lodi) because they were operating month-to-month under an expired lease term. Concurrently, the Community Partnership for Families of San Joaquin had expressed interest in this location because their lease was expiring soon. At that meeting, a representative from the Community Partnership for Families of San Joaquin advised they did not want to displace an existing business (CrossFit Lodi) and expressed stronger interest in sharing the building currently occupied by Lodi Adopt- A-Chitd. Council directed Staff to proceed with preparing a new lease agreement with CrossFit Lodi at the 111 North Stockton Street location and to facilitate discussions between LodiAdopt-A-Child and Community Partnership for Families of San Joaquin to determine if these two non-profit organizations could agree to work out of the same building space. Staff continues to pursue this direction. The proposed lease agreement includes a starting lease rate of $1 ,825 per month for the first full 12 months, followed by yearly rent adjustments based on the annual change in Consumer Price lndex for all Urban Consumers from San Francisco-Oakland-Hayward California area. Based on research conducted by Staff, the initial monthly rate is consistent with the market rate for buildings of this type and location and is acceptable to the new owners of CrossFit Lodi. The initial term of the lease extends through August 31,2022, with the provision for one, two-year extension, if mutually agreed upon by the City and CrossFit Lodi. FISCAL IMPACT Proceeds from this lease will be directed to the Parks, Recreation, and Cultural Services Fund. FUNDING AVAILABLE: Not applicable Charles E. Swimley, Public Works Director CES/CES/tc Attachment APPROVED K:\WP\COUNCIL\2020\CC Lease 111 N Stockton St.doc en uer, City Manager 7124t2020 RESOLUTTON NO. 2020-170 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE LEASE OF CITY PROPERTY LOCATED AT 1 11 NORTH STOCKTON STREET WHEREAS, on May 20, 2020, staff requested Council direction regarding the lease for 111 North Stockton Street (CrossFit Lodi) because they were operating month{o-month under an expired lease term; and WHEREAS, Council directed staff to proceed with preparing a new lease agreement with CrossFit Lodi at the 111 North Stockton Street location; and WHEREAS, the proposed lease agreement includes a starting lease rate of $1,825 per month for the first full 12 months, followed by yearly rent adjustments based on the annual change in Consumer Price lndex for all Urban Consumers from San Francisco-Oakland- Hayward California area; and WHEREAS, staff recommends that the City Council authorize the City Manager to execute the lease of City property located at 111 North Stockton Street. NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the lease of City property located at 111 North Stockton Street for the term of September 1 , 2020 to August 31, 2022; and BE lT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 1116119, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above-referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: August 5,2020 I hereby certify that Resolution No. 2020-170 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 5,2020, by the following vote: AYES: COUNCIL MEMBERS - Chandler, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS - Mounce ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None tu NI City Clerk 2020-170 CUSMIR