Report Prepared by: Amanda Williams, Economic Development Associate
Title
SUBJECT: Approval of a Two (2) Year Lease Agreement with James G. Moulton, Trustee, and Lynda S. Moulton, Trustee, for a 9,000 Square Foot Facility with Initial Base Rent of $8,643.00 Per Month and an Option to Extend for an Additional Three (3) Years
REPORT IN BRIEF
Considers approving a two-year lease agreement with James G. Moulton and Lynda S. Moulton for property to be utilized by criminal justice agencies in Merced County.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the lease agreement between the City of Merced and James G. Moulton, Trustee, and Lynda S. Moulton, Trustee; and,
B. Authorizing the City Manager to execute the necessary document.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve, subject to conditions as specified by the City Council; or
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council; or
5. Defer action until a specified date
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025-2026 Adopted Budget.
DISCUSSION
The previous Lease Agreement approved in 2022 has now expired, and staff has negotiated another two-year lease with Jim Moulton and Lynda Moulton, Trustees (Attachment 1). The subject building and property will continue to be used by a unit composed of criminal justice agencies in Merced County to combat violent crime and gang violence across the county. Federal, state, and local agencies assign personnel that are co-located and work cooperatively, each bringing their unique resources to the team.
The proposed Lease Agreement reflects a starting market lease rate of $8,643 per month which also includes property taxes, insurance, and utilities. and allows for an annual increase of 3%.
Lease payments are made by the City of Merced; however, funding for the lease payments comes from the U.S. Department of Justice. Funding is not provided by the General Fund. The City serves as the financial fiduciary passing the lease payments through to the Moulton’s.
Notable terms of the proposed Lease Agreement are as follows:
Term: Two (2) years with an option to extend for an additional three (3) years. The City will evaluate the need to extend the lease at the end of the initial 2-year term.
Rent: Eight-Thousand Six-Hundred and Forty-Three Dollars ($8,643) per month.
IMPACT ON CITY RESOURCES
The rent and use of the property will be paid for with Asset Forfeiture Funds. General Fund dollars are not used to pay the lease.
ATTACHMENTS
1. Property Lease Agreement