Report Prepared by: Frank Quintero, Director of Economic Development
Title
SUBJECT: Lease Renewal, Second Amendment, Between the City of Merced and Kaljian Family Revocable Trust for the Evidence Storage Facility at 450/460 Grogan Avenue
REPORT IN BRIEF
Second amendment to the lease agreement exercising an option to extend the lease 5-years with a new lease rate for a ?10,410 square foot warehouse and ?1.12-acre yard for use by the Merced Police Department with the Kaljian Family Revocable Trust.
RECOMMENDATION
City Council - Adopt a motion approving the second amendment to the lease agreement with the Kaljian Family Revocable Trust for the facility and yard at 460 Grogan Avenue extending the lease for five years and lease rates; and, authorizing the City Manager or Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff, or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200
CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget
DISCUSSION
The Office of Economic Development negotiated a Lease Renewal with the Kaljian Family Revocable Trust for a ?10,410 square foot warehouse and ?1.12 acre storage yard on behalf of the Merced Police Department (Attachment 1). Currently, the Police Department are using the building and yard for evidence storage and are paying $4,580.00 which did not include a charge for the outdoor storage. The proposed lease renewal represents a starting market lease rate of $0.50/sf plus a $1,000.00 charge for use of the 1.12 acre outdoor storage. Under the Second Amendment, rent for the building and outdoor stor...
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