HomeMy WebLinkAbout08/17/1999, C5 - EXTENSION OF LEASE AGREEMENT WITH KEN GLICK FOR CITY OWNED PROPERTY IN STENNER CANYON council 8-17-99
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CITY O F SAN LUIS O B I S P O
FROM: Ken Hampian,Assistant City Administrative Offi
Prepared By: Neil Havlik,Natural Resources Managarw
SUBJECT: EXTENSION OF LEASE AGREEMENT WITH KEN GLICK
FOR CITY OWNED PROPERTY IN STENNER CANYON
CAO RECOMMENDATION
Approve an extension of the existing lease with Mr. Ken Glick for rental of the city owned
property in Stenner Creek Canyon, for the period September 1, 1999 to December 31, 1999,with
provision for the CAO to grant one additional extension to April 30, 2000.
DISCUSSION
A 13 acre property in Stenner Creek Canyon has been owned by City of San Luis Obispo (as part
of the old water treatment plant) for a number of years. For the past six years, it has been leased
to W. Ken Glick, who owns an adjacent, 900 acre ranch. A mobile home, once owned by the
City and sold in 1993 to W. Glick, is on the premises. At the time of sale of the mobile home,
the property was leased to W. Glick for a period of five years. At the end of that period, W.
Glick was to remove the mobile home from the site and restore it to a natural condition.
In March, 1998 Mr. Glick approached City staff about the possibility of his acquisition of the 13
acre property in exchange for a conservation easement on all or part of his adjacent ranch.
Discussions about the possibility appeared promising enough that, in September 1998, the City
Council approved an extension of the lease to August 31, 1999, anticipating that some mutually
acceptable arrangement might be made during that time. For a variety of reasons,however, little
progress was made on the matter, although both parties remain committed to a good faith effort
in this regard. We have agreed on the area to be considered for the conservation easement, and
have the appraiser, Todd Murphy, ready to proceed with the appraisaL Staff is therefore
recommending that the lease, due to expire at the end of August, be extended for four months,
with a further four month extension to be granted by the City Administrative Officer if
satisfactory progress on the matter is made. The cost of the appraisal would be shared by the
parties on a 50:50 basis.
CONCURRENCES
The Utilities Department, which administers the property, has been a party to the discussions
with Mr. Glick and concurs in this arrangement. The Utilities Department would continue to
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Council Agenda Report—Lease Agreement with Ken Glick...
Page 2
administer the lease, and continue to participate in discussions with Mr. Glick as to an equitable
transaction.
FISCAL EMPACT
Rental for the property will be $375 per month, for a total of$1,500 for four months and $3,000
for eight months. As noted above Mr. Glick and the City will share the cost of an appraisal
covering both properties. This is expected to cost $4,500 as it is a complex appraisal, and funds
for the City portion($2,250)will come from the Natural Resources Program.
ALTERNATIVE
The Council could reject the extension. This is not recommended as the extension represents a
good faith effort on the part of both parties to continue to explore what might be an innovative
means of furthering City Greenbelt goals while meeting Mr. Glick's plans as well.
Attachment A: .Extension of Lease of Property
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ATTACHMENT A
EXTENSION OF LEASE OF PROPERTY:
Stenner Canyon APN 073-281-004
This Extension of Lease, made and entered into this first day of September, 1999, by and between
the City of San Luis Obispo (hereinafter, "City"), a Municipal Corporation, and Kenneth L. Glick (hereinafter
"Lessee'), is made with regard to the following
RECITALS:
WHEREAS, the parties hereto are currently party to a Lease dated September 1, 1998 whereby the
City has leased approximately 13.62 acres of real property known as APN 073-281-004 Stenner Canyon, San
Luis Obispo County, California("the premises')to Lessee and,
WHEREAS,the parties now desire to extend said Lease for a period of up to eight(8)months to April
30,2000.
NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions
stated in said Lease of September 1, 1998, and further to the conditions contained herein, the parties agree
as follows:
1. INITIAL EXTENSION OF TERM
The term of the existing Lease dated September 1, 1998 is hereby extended from September 1,
1999 to December 31, 1999.
2. FURTHER EXTENSION
Provided that satisfactory progress is made on the possibility of a property interest trade between
the two parties this lease may be extended by the City Administrative Officer for an additional four (4)
months to April 30,2000.
3. ALL OTHER CONDITIONS OF LEASE DATED SEPTEMBER 1. 1998 TO REMAIN IN EFFECT
All other terms and conditions of the Lease dated September 1, 1998 between the City of San
Luis Obispo and Kenneth L. Glick for the premises shall remain in full force and effect except as
expressly amended herein.
In tartness whereof,the parties have executed this lease on the date first above written.
CITY OF SAN LUIS OBISPO, KENNETH L. GLICK
A municipal corporation
Mayor,Allen Settle
ATTEST: APPROVED AS TO FORM:
l•
City Clerk, Lee Price City Attorney, Jeff Jorgen
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