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HomeMy WebLinkAbout01/16/2001, C4 - AUTHORIZATION TO LEASE PROPERTY AT 1095 MARSH STREETM.. i� D. council 1 -16 -01 j acEn6a Repopt It C4 CITY O F SAN LUIS O B I S P O FROM: Wendy George, Assistant City Administrative Officer Prepared By: Neil HavW Natural Resources Manager SUBJECT: AUTHORIZATION TO LEASE PROPERTY AT 1095 MARSH STREET CAO RECOMMENDATION Authorize the City Administrative Officer to enter into an "Interim Property Maintenance Lease" for the property at 1095 Marsh Street for one dollar ($1.00), to allow the City to take possession of the property and undertake minor safety and landscaping improvements and routine maintenance prior to the formal acquisition of the property, subject to final approval of the lease by the City Attorney. DISCUSSION In November of 1999, the City Council approved purchase of the 11,000 square foot commercial property known as John's Batteries, on the comer of Marsh Street and Santa Rosa Avenue, from the Cheda family, subject to certain conditions, including relocation of the tenant on the property and successful environmental cleanup of the site. This work was expected to be completed by late 2000, and remediation of the portion of the property that contained the gas station has been essentially completed. However, in the course of remedial work, lead contamination was found on a portion of the property within the riparian area of San Luis Obispo Creek. Because of the sensitive nature of that area, investigation and remediation of that portion of the site cannot be undertaken until next spring, and the schedule for completion of remediation is therefore uncertain. As a result, the community is faced with a property that is in limbo, only partly remediated, fenced off and unattractive to passersby. Because of this situation, staff suggested to the Cheda family that the parties enter into a lease that would allow the City to take possession of the site for safety and interim landscaping purposes while both parties await completion of remediation and subsequent transfer of title. The lease would grant the City possession of the site for such purposes, but would retain the family's responsibility to complete remediation prior to close of escrow. The family is receptive to this concept, and accordingly staff is seeking authority to enter into a lease that would accomplish these purposes. FISCAL IMPACT The lease would not significantly affect the City's budgeting for the site. Sufficient funds for minor site landscaping are in the current City budget for this project, and the interim landscaping activities would not affect the current design work regarding long -term use of the site. The latter will be the subject of a CEP project for the 2001 -2003 financial plan. C4 -1 CiDuncH A 9 enda.Report Authorization of-Enter, Lease Page 2--- ALTERNATM The-CdUncil could decide not to enter info the lease. This is not recommended since it would me-an ,thdt.the property would continue to sit Vacant and . presumably fenced in the manner that it is how' for.an iindeteftmm- ed amount of time. .Attadhrhdit-- Proposed.Lease C4-2 qj 0/1MEp1 -r `u C T INTERIM PROPERTY MAINTENANCE LEASE THIS INTERIM PROPERTY MAINTENANCE LEASE ( "LEASE ") is entered into this day of , by and between the CITY OF SAN LUIS OBISPO ( "CITY ") and the CHEDA REVOCABLE FAMILY SURVIVOR'S TRUST, dated March 21, 1990, ( "TRUST ") with regard to the following RECITALS CITY and TRUST are both party to agreement dated November 22, 1999 (the "Purchase Agreement', in which the TRUST'S property at 1095 Marsh Street, San Luis Obispo, CA., is being purchased by the CITY for park purposes. Said purchase requires among other things that the property be remediated from past contamination by petroleum products and other contamination associated with past uses of the site. Investigation has revealed that certain contamination by lead compounds exists on the property within the riparian area of San Luis Obispo Creek, and that this contamination cannot be remediated until a remediation plan is approved by various local, State, and Federal regulatory agencies, thus rendering the timetable for such remediation uncertain. Both parties wish to see the site in a more attractive and useful condition for the enjoyment of the citizens of the community during the remaining time before transfer of title. THEREFORE, THE PARTIES AGREE AS FOLLOWS: For One Dollar, CITY hereby leases said property from TRUST for the purposes of landscaping and routine maintenance of the property This lease shall remain in effect until the purchase of the property by the CITY is completed, at which time the lease shall automatically expire. CITY agrees to defend, indemnify, protect and hold TRUST and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to CITY'S employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of CITY and its agents, officers, or employees, arising out of this lease, and all expenses of investigating and defending against same; provided, however, that CITY'S duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole active negligence or willful misconduct of the TRUST, its agents, officers or employees. TRUST agrees to defend, indemnify, protect and hold CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established C4 -3 for damages or injuries to any person or property, including injury to TRUST'S employees, agents, or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of TRUST and its agents, officers, or employees, arising out of the TRUST'S ownership of the property or its obligations under the Purchase Agreement referenced above, and all expenses of investigating and defending against same; provided, however, that TRUST'S duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole active negligence or willful misconduct of the CITY, its agents, officers or employees. Except as provided herein, all terms and conditions of the Purchase Agreement dated November 22, 1999, remain in full force and effect. "TRUST" CHEDA REVOCABLE FAMILY SURVIVOR'S TRUST, dated March 21, 1990 by: RUTH G. CHEDA Trustee Date: "CITY" CITY OF SAN LUIS OBISPO bv: ALLAN K. SETTLE Mayor Date: ATTEST: LEE PRICE, CMC City Clerk APPROVED AS TO FORM: JEFFREY G. JORGENSEN City Attorney C4-4