HomeMy WebLinkAboutOB 1 STRIP OF LAND 06-15-81DATE:
Ju~e 10, 1981
OLD BUSINESS
6-15-81
No. 1
Inter-Com
FROH:
S UBJ ECT:
HONORABLE MAYOR AhD CITY COUNCIL
CHARr.w-q ~HAYER, INTERIM CITY AEMINISTRATOR
41' STRIP OF LAND EAST OF BOYS CLUB
Councilman Edgar, City Attorney Jim Rourke and ~yself met with the Boys
Club Board of Directors on Tuesday, June 9th, to discuss the continued
revision of the City's lease with the Boys Club. After lengthy discussion,
the Boys Club agrc~ to return a reconmended agreement that their
organization felt adequately protected them and at the same time provided
the City with the desired controls in order to adequately develop the
property to the ~t of the Boys Club. That do¢~ent will not be oompleted
until Friday, June 12th. At that time, it will be reviewed by the City
Attorney and oral co~nents will be made during the Council meeting of June
15th.
Additionally, Ken Fleagle, Consultant, has been in contact with 6 Star
Cable Television and Walter Foster in an attempt to have an alternative
disposition to the property that would be acceptable to all parties
concerned. Attached to this re. port is a copy of Dr. Fleagle's co~lm~nts and
alternatives. (11 the afternoc~ of June 9th, he ma~e contact with Walter
Foster and Mr. Foster agreed in part to the actions contained within Dr.
Fleagle's report. However, he was adamant that he would pay nothing more
than the $10,000 that he b~d already offered on the property.
The Staff is continuing to attempt to resolve this matter in the best
interests of all concerned and will be making further oral presentation
on June 15th.
DATE:
Thru:
TO:
FROM:
SUBJECT:
June 8, 1981
City Administrator
Honorable Mayor and Council
R. Kenneth Fleagle, D.P.A.
6th Street MWD Easement
Inter-Corn
Six Star Cablevision has made a tentative offer to the City of
$500. per month for the lease of 3500 sq. ft. of the MWD Easement
between the Boys Club and the proposed Foster industrial building
on 6th Street.
The offer at $7.00 per sq. ft. exceeds the appraised rental value.
For 3500 sq. ft. compounded at 14% interest, the return would
amount to $302,893 for 1/3 of the area for the 15 year term of the
lease. This is of greater public benefit than the Saje of surface
rights for $10,000.
The lease of the southerly portion of the easement would not
preclude development of the Foster property with loading dock
access and 15 parking spaces remaining on the easement.
A public hearing f6r a Use Permit would be required to establish
the antenna sites and the offer is contingent upon determining that
a signal can be received at this location. It will also be
necessary to obtain permission from MWD to place the antenna on the
site.
As an alternative, the disc antennas could be placed on the roof of
the Foster Building and the m~st antenna could be placed either on
the roof or on the surface near the building.
It may be possible to develop a three-way agreement between
Foster, Six-Star, and the City whereby the following conditions
would be covered:
A lease of the total easement area to Walter Foster for a
period of 37 years (the remaining life of the Boys Club
lease) at the rate of $700 per month, which is comparable
to the market value of the lease.
Six Star would lease the roof area and ground site for the
m~st antenna from Foster, plus additional space within the
warehouse building to house their relay equipment. The
lease would be for the 15 year length of the franchise at
not less than $500. per month plus market rate for
warehouse area.
6th Street MWD Easement
June 8, lg81
Page Two
Foster would obtain a non-exclusive right to use the
easement area for parking and access to the warehouse dock.
Satisfaction of the requests of the Boys Club for the
construction of basketball court and the use of the parking
lot during non-business hours.
The opportunity to review and renegotiate the lease terms
after 15 years (the term of the Six Star Franchise) at fair
market value.
If Walter Foster is not willing to negotiate the lease of the
property on these terms, an alternative arrangement would
provide for the following.
A lease of the southerly 3500 sq. ft. of th 40' easement to
Six Star Cablevision for 15 years at the rate of $500. per
month, subject to Six Star gaining a permit from MWD to
construct the antenna on the site.
A lease of the northerly 145' of the 40' easement to Walter
Foster for a period of 37 years at not less than $200. per
month subject to the following:
a. A nonexclusive right to use the easement for parking
and access to the warehouse dock.
b. The paving and parking lot development of the northerly
145'.
c. Satisfaction of the Boys Club request for a basketball
court and the use of the parking lot during
non-business hours.
d. Access rights to Six Star Cablevision to the southerly
antenna site.
e. The opportunity to review and renegotiate the lease
terms after 15 years at fair market value.
If Mr. Foster is unwilling to negotiate in accordance with the
above alternaties, it is recommended that negotiations cease
with Mr. Foster, a lease be presented for Six Star Cablevision;
and the remainder of the property be reserved for public use.
D. I will be meeting with Mr. Foster prior to the Council meeting
on June 15, 1981 to report the response to the above
alternatives.
R. Kenneth Fle[gle, D.P.A.
Community Development Consultant
June 5, 1981
City Council
City of Tustin
Centennial at Main
Tustin, California
92680
Attention: Dr. R. Kenneth Fleagle
Dear Dr. Fleagle:
We wish to confirm the outcome of our meeting this morning,
regarding the use by our company of a sufficient portion of
the forty foot pipeline easement extending from Sixth Street
to the Santa Ana Freeway, to accommodate the installation of
our master head end facilities to service the City of Tustin.
We would be willing to lease a portion of this easement,
approximating 3500 square feet in size, for a rental price
of five hundred (500) dollars per month. Due to the use for
which the site is intended, we would require a lease of a
minimum term of fifteen (15) years.
Our agreement to lease this portion of land is subject to
confirmation by our Engineering Group that the reception of
off-air and satellite signals at this location is free of
interference and that the City of Tustin will permit the
erection, on the site, of a tower of sufficient height to
serve our requirements.
Please advise us at your earliest if you have any interest
in concluding an agreement along the line of the foregoing.
In the meanwhile, we remain at your entire disposal should
you re~Tuire additional information.
Yours ~ery Truly,
G.A. ard
Executive Vice President
cc: R. Patty
205 West '1st Street · Tustin, California 92680 · [7'14] 73'1-7494