Report Prepared by: Amanda Williams, Economic Development Associate
Title
SUBJECT: Approval of a One Year Lease Extension Between the City of Merced and USPS (United States Postal Service) at the Bell Station (415 W. 18th Street) with an Annual Rate of $66,759
REPORT IN BRIEF
Considers approving a one-year lease extension with USPS for office space at Bell Station, with an annual rental rate of $66,759.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Lease Extension Agreement with the United States Postal Service for office space at the Bell Station with an annual rental rate of $66,759; and,
B. Authorizing the City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Adopt the motion as recommended by staff; or
2. Modify the action (specify in motion); or
3. Deny the action.
AUTHORITY
Section 200 of the City of Merced Charter.
CITY COUNCIL PRIORITIES
City of Merced Adopted Budget Fiscal Year 24/25, Section 7 - Bell Station Facility: Mission - Maintain and preserve the Bell Station as a historic icon in Downtown Merced.
DISCUSSION
The USPS currently occupies 4,305 square feet at the Bell Station that includes 3,740 square feet of dedicated space to their operations; the remaining square footage accounts for their share of the loading dock and lobby area (See Bell Station Floor Plan).
The United States Postal Service (USPS) has been a tenant of the Bell Station since 1933. Staff retained USPS as a tenant when the City acquired the Bell Station from the U.S. General Services Administration (GSA) in 2007.
City staff is actively working to transition the building and right of ownership to another government agency. The agreement includes language that allows both the City and the Postal Service to terminate the agreement.
Notable terms of the Lease Agreement include: (Attachment 1)
Parties: Lessor: City of Merced
Lessee: United States Postal Service (USPS)
Premises: The subject site is a portion of the city-owned Bell Station, located at 415 W. 18th Street. (Attachment 2)
Term: One (1) year lease
Monthly Rate: $5,563.25
Annual Rate: $66,759.00
IMPACT ON CITY RESOURCES
The rent revenues generated are deposited into Fund 3002-Bell Station Fund to support ongoing operations of the building. The revenue was included in the FY 2024-25 budget and not adjustment is needed.
ATTACHMENTS
1. Lease Extension Agreement
2. Bell Station Floor Plan
3. USPS Lease 2009