Share to Facebook Share to Twitter Bookmark and Share
File #: 16-385    Version: 1 Name:
Type: Staff Report Status: Passed
File created: 5/20/2016 In control: City Council
On agenda: 6/1/2016 Final action: 6/1/2016
Title: LEASE WITH OPTION TO PURCHASE OF LAND FOR FUTURE PARKING AND RECREATION FACILITIES
Attachments: 1. Attachment 1 Resolution, 2. Attachment 2 Ground Lease signed by Lomanto, 3. Attachment 3 Agreement re Clean-Up signed by Lomanto, 4. 10 & 16 Supplement 1
CITY COUNCIL STAFF REPORT
MEETING DATE: JUNE 1, 2016

PREPARED BY: Chris Ghione, Community Services Director,
Gary M. Baum, Interim City Attorney
APPROVED BY: City Manager

TITLE
LEASE WITH OPTION TO PURCHASE OF LAND FOR FUTURE PARKING AND RECREATION FACILITIES
END

RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution authorizing the City Manager to execute all documents, agreements and payments necessary to enter into a lease with option to purchase for ten acres of land for future sports and recreation facilities and related purposes.

BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:



Ongoing Priorities
Supporting Youth

2016 Focus Areas
Developing Our Community

REPORT NARRATIVE:
The Morgan Hill Outdoor Sports Center (OSC) and Morgan Hill Aquatics Centers (AC) are located adjacent to each other on Condit Road. Both facilities are utilized for local and regional sports and recreation events. Large events at both sites support both local economic development and cost recovery at the facilities. However, these large events require significant parking and as both facilities have increased in use, an increased need for parking has been identified. The FY 2105/16 Capital Improvement Plan included $2 million in funding to purchase land for the purpose of parking and future parks and recreation uses.

In early 2015, City staff was approached by the owners of 10 acres of land adjacent to both the AC and OSC at 1250 Barrett Avenue, who expressed an interest in selling their property to the City. The property would provide more than enough space to meet current and future parking needs for both the AC and OSC with remaining space available for future park and recreation uses. City staff has worked to negotiate the terms of the agreement that is now being presented to the City Council for its review and approval.

The terms of the Ground Lease with Option to Purchase are as follows:

1. 5 year term.
2. Lease amount is $100,000 per year with the City recei...

Click here for full text