| | | | | | | | 
AGENDA REPORT
|
| | | | | | | | DATE:
| November 19, 2019
| TO:
| Mayor and City Council
| FROM:
| Sean P. Quinn, Interim City Manager
| | SUBJECT: | Resolution 2019-268 of the City Council of the City of Fairfield Authorizing Execution of the Ground Lease by and between the City of Fairfield and Wind River Enterprises, Inc. for Approximately Seventeen Acres of Land Located at 2325 Cordelia Road |
|
| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
|
| | | | | | | | | STATEMENT OF ISSUE | | Wind River Enterprises, Inc. (“Wind River”) and the City of Fairfield (the “City”) wish to enter into a Ground Lease for a term of five (5) years with the option to extend for an additional five (5) years. Wind River will be operating an overflow vehicle parking lot on approximately 17.33 acres of the City’s land located at 2325 Cordelia Road (“Premises”). |
|
| | | | | | | | | DISCUSSION | The City owns a 23-acre parcel of land located at 2325 Cordelia Road and having the APN 0046-010-440 (the “City Property”). Fairfield Extreme Sports currently leases approximately 6 acres of the City Property. Wind River is interested in leasing the remaining 17 acres known as the Premises for the purpose of parking overflow vehicles from their primary business, North Bay Auto Auction, located at 250 Dittmer Road. The Premises will not be used for the storage or repair of any vehicles. The initial term will be for 5 years with one additional Extension Term of 5 years.
The proposed monthly starting rent for the initial term is $7,000 and increases 3% annually through the Extension Term.
Wind River will complete improvements necessary to operate including but not limited to installing a security fence and laying gravel in the areas where the vehicles will be parked.
The Property is adjacent to the Fairfield-Suisun Sewer District (the “FSSD”) to the southwest and a power peaker plant to the northeast. The Property maintains a buffer between the FSSD and other developed/occupied properties. Wind River will secure a separate access agreement with FSSD for access to the Premises.
|
|
| | | | | | | | | FINANCIAL IMPACT | | The initial term of the Ground Lease will generate approximately $446,000 in lease revenues for the City. These revenues will go into the City’s General Fund (011-99-000-6505). |
|
| | | | | | | | | CITY COUNCIL WORKPLAN | Community Safety
| Community Infrastructure | Quality of Life | | Financial and Operational Sustainability | Economic Development | Travis Air Force Base |
| City Council Goal this item supports:
Not Applicable |
|
| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
|
|
| | | | | | | | | ALTERNATIVE ACTION | | The City Council may choose to modify terms of the Ground Lease or not approve the Ground Lease. |
|
| | | | | | | | | STAFF CONTACT | Jennifer Rice, Real Estate Specialist II
707-428-7727
jrice@fairfield.ca.gov
|
|
| | | | | | | | | COORDINATED WITH | City Attorney's Office
|
|
| REVIEWERS: | | Reviewer | Action | Date | | Rice, Jennifer | Approved | 10/31/2019 - 12:34 PM | | Feinstein, David | Approved | 10/31/2019 - 12:57 PM | | Henry, Alicia | Approved | 11/5/2019 - 7:11 PM | | Henry, Alicia | Approved | 11/12/2019 - 5:15 PM |
|
|