HomeMy WebLinkAboutRDA 04 PKG STEVENS SQ 06-21-99DATE: JUNE 21, 1999
RDA 4
6-21-99
lntor-Com
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
REDEVELOPMENT AGENCY STAFF
LEASE AGREEMENT FOR PARKING SPACES IN TI~ STEVENS SQUARE
PARKING STRUCTURE AND WAIVER OF LEASE FEES; AUDREY HEREDL~t
RECO~NDATION
It is recommended that the Agency: authorize the Assistant City Manager to execute a lease
agreement, between the Tusfin Community Redevelopment Agency and Ms. Audrey Heredia for the
use of a total of eight (8) parking spaces owned by the Agency in the Stevens Square Parking
Structure, subject to the approval of the lease agreement by the City Attorney.
Waive the fees for the lease of these spaces.
The lease fees for the eight (8) spaces for which the waiver is requested would have an annual cost of
$412 each.
BACKGROUND
Ms. Heredia, is the owner of the McCharles House Restaurant and Tea Room located at 335 C
Street. She has submitted a Design Review application to remove on-site parking which will
permit the installation of a formal outdoor garden, construction of a gazebo in the garden,
construction of a small building to be used for retail sales, and the addition of a veranda to the
existing building. The Community Developmem Department has recommended that the Tustin
Zoning Administrator at a regular meeting on June 21, 1999 approve Ms. Heredia's project. One of the
proposed conditions of approval for the project require Ms. Heredia to enter into a lease agreement
with the Redevelopment Agency for a total of eight (8) parking spaces in the parking structure.
The Tustin Community Redevelopment Agency has a condominium interest in 81 parking spaces in the
second level of the Stevens Square Parking Structure. The Stevens Square company owns ~e
William A. Huston
June 21, 1999
Page 2
remainder of the condominium interest and parking spaces in the structure. A total of thirty-five (35)
parking spaces have been leased to business interests in Old Town to mitigate their need for parking.
Ralph Sanchez has leased eighteen (18)-parking spaces for his restaurant located at 425 E1 Camino
Real, Jeff Thompson has leased five (5) spaces for his office building located at 100 West Main Street
and Rick Rengel has leased twelve (12) spaces for his two buildings at 333 and 339 E1 Camino Real.
The additional eight (8) spaces being requested by the applicant will bring the number of spaces under
current lease to local businesses up to forty-three (43) spaces.
The Agency originally paid $700,099 for its interest in the parking structure and ownership of the 81
spaces. When the Agency acquired the condominium interest there was a formula devised to calculate
the value of an individual parking space. The formula provided that the value of a parking space would
be equal to four (4) times the assessed value (as determined from the latest assessment roll of the
County Assessor) of a parcel of land 200 square feet in size within the structure. The most recent value
of the land is $618,994. Using the previous formula, the emrent monthly value of a parking space is
$34.37. Therefore, total lease fees for the additional eight (8) spaces requested by Ms. Heredia would
be $412 per year per space. The applicant is requesting'that these lease fees be waived. This request is
attached as Exhibit A~ The three currently active lease agreements for Agency owned spaces in the
parking structure have also all had their fees waived by the Agency.
Staff believes that the request of the applicant for waiver of lease fees is justified as a means of
supporting the expansion of a successful business in Old Town. The applicant's request to offset their
loss of onsite parking by obtaining parking in the City owned parking spaces is in conformance with the
City's Zoning Code, Cultural Resource District's Design Criteria and Development Standards. Further,
it should be noted that the use of the parking structure has been historically low.
Staff would recommend that the Agency authorize the City Attorney to prepare the lease agreement,
and authorize the Assistant City Manager to execute a lease agreement for a total of eight (8) parking
spaces subject to an annual review to continue the agreement between the Tustin Community
Redevelopment agency, and waive any lease fees.
Assistant City Manager
David Gottlieb
Senior Redevelopment Project Manager
EXHIBIT A
WAIVER OF LEASE FEE REQUEST
June 14, 1999
Mr. David Gottlieb
Senior Redevelopment Project Manager
City of Tustin
Tustin, CA 92780
Subject: Waiver of Lease Fees for Parking at Stevens Square Parking Structure.
Dear Mr. Gottlieb:
The conditions of approval for the Design Review 99-015 for my property located at 335 South C
Street have required me to enter into a lease agreement with the Tustin Community
Redevelopment Agency for nine (9) spaces owned by the Agency in the Stevens Square parking
structure.
Please accept this letter as my request that I be allowed to lease from the Tustin Community
Redevelopment Agency nine (9) parking spaces in the parking structure. I am also requesting a
waiver of the lease fees associated with these nine (9) parking spaces.
Thank you for your consideration.
~Si_ncer.ely, ~
McCharles House Restaurant and Tea Room