HomeMy WebLinkAbout15 LEASEHOLDS FOR CITY OR RDA REAL PROPERTY-~.r-. • Agenda Item 15
AGENDA REPORT Reviewed:
City Manager
Finance Director N/A
MEETING DATE: SEPTEMBER 21, 2010
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: DOUGLAS HOLLAND, CITY ATTORNEY
SUBJECT: DRAFT ORDINANCE ESTABLISHING REQUIREMENTS FOR
EXTENSION OR MODIFICATION OF LEASEHOLDS FOR CITY OR
REDEVELOPMENT AGENCY REAL PROPERTY
SUMMARY
Pursuant to City Council direction, this office has prepared a draft ordinance establishing a
procedure governing the proposed extension or modification of existing real property
leaseholds held by the City or the Redevelopment Agency.
DISCUSSION
The draft ordinance would add a new Chapter 10 to Article 7 "Public Facilities" to the
Tustin Municipal Code establishing a procedure to be conducted prior to modifying or
extending existing City or Redevelopment Agency leaseholds.
Section 8000(A) provides that no existing lease shall be modified or extended without
following a prescribed process.
Section 8000(8) provides that real property leases shall not be substantially modified or
extended without an administrative analysis being conducted with respect to market
rates, appropriate utilization of land, tenant history, and other pertinent facts deemed
appropriate by the City Manager, and or the City Council.
The administrative analysis is to be conducted by the City Manager's Office. After due
consideration by the City Council or Redevelopment Agency, the legislative body would
then take one of several optional actions: direct preparation of the modification or
extension of lease; direct that a "Request for Proposals" process be undertaken open to
the bidding public at large; or take such other action as deemed appropriate.
(Subsection (D)).
Elements of the Request for Proposal process are set forth in subsection (E).
Page 2
RECOMMENDATION
It is recommended that the City Council consider the various aspects of this ordinance
and give direction to staff as it deems appropriate.
Douglas Holland
City Attorney
Attachment: Draft Ordinance
a~a~
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN
ADDING CHAPTER 10 "REQUIREMENTS FOR EXTENSION OR
MODIFICATION OF LEASEHOLDS FOR CITY OR REDEVELOPMENT
AGENCY REAL PROPERTY" TO ARTICLE 7 "PUBLIC FACILITIES" OF
THE CITY OF TUSTIN MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ORDAINS:
SECTION 1. Code Amendment. Chapter 10, entitled "Requirements for Extension Or
Modification Of Leaseholds for City Or Redevelopment Agency Real Property" is hereby
added to Article 7, "Public Facilities", of the City of Tustin Municipal Code.
"CHAPTER 10. Requirements for Extension Or Modification Of Leaseholds For
City Or Redevelopment Agency Real Property
8000. Procedure For Extension or Modification of Existing City or
Redevelopment
Real Property Leases.
A. No existing City or Redevelopment Agency real property lease shall
be modified or extended without following the process as identified in this section.
B, City or Agency real property leases shall not be substantially
modified or extended without an administrative analysis being conducted with respect to
market rates, appropriate utilization of the land, tenant history, and other pertinent
factors deemed appropriate by the City Manager and or the City Council.
C. The City Manager's office shall first prepare an administrative
analysis of factors identified in subpart (b) prior to the presentation of any specific
proposal brought to the City Council/Redevelopment Agency for the purpose of
substantially modifying or extending such real property leases.
D. After consideration of the administrative analysis, the City Council
or Redevelopment Agency shall direct: (i) the preparation of a proposed modification
or extension; (ii) the preparation of a request for proposals ("RFP") for a new leasehold
from interested parties; or (iii) take such other action as deemed appropriate.
E. A request for proposals process shall include the submission of
prior business experience, financial strength, proposed uses of property, credit history,
market rental conditions, and such other information as deemed appropriate.
• ~
Ordinance Adding Chapter 10 -Extension of Leaseholds to Article 7
Page 2
PASSED, APPROVED, AND ADOPTED THIS DAY OF _ _ _ , 2010.
JERRY AMANTE, MAYOR
ATTEST:
PAMELA STOKER, CITY CLERK
APPROVED AS TO FORM:
DOUGLAS HOLLAND, CITY ATTORNEY