Report Prepared by: Joey Chavez, Director of Parks and Community Services
Title
SUBJECT: Approval of Three-Year Lease Agreement with Seth Rossow for 24.5 Acres Located at Mission Avenue and Tyler Road (CP-42) in the Amount of $730.00 Per Year
REPORT IN BRIEF
Considers approving a three-year lease agreement with Seth Rossow for 24.5 acres located at Mission Avenue and Tyler Road (CP-42) for $730.00 per year.
RECOMMENDATION
City Council - Adopt a motion approving the lease agreement with Seth Rossow; 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 consideration 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 2018-19 Adopted Budget.
DISCUSSION
In December 2014, the City of Merced entered in a lease agreement with Seth Rossow to use 34.57 acres of property located at Mission Avenue and Tyler Road (CP-42) for agricultural use. The agreement was later amended in 2015 to reduce the rate charged for the land in response to the drought conditions on the property. In 2017 the lease agreement was amended again to reduce the acreage available for lease from 34.57 acres to 24.5 acres to accommodate the development of a much-needed well site.
The City of Merced will use a portion of the 10 acres that were reduced from the original lease agreement for development of Well Site #20. The CP-42 property will ultimately be developed into a sports park/soccer complex and the completion of the well site is integral to construction of the park. The remainder of the 10 acres will be used for the required retention basin that is being turned into a soccer field as part of the well site development agreement. Well Site #20 is tentatively scheduled to go to bid in late spring of 2019, with construction to start in the summer.
Mr. Rossow is aware of the future plans to construct the well and eventually develop the land into soccer fields and the City has worked closely with him to ensure that development of the park does not interfere with his scheduled crops. Staff will continue to communicate any changes in plans for the property in a timely manner with Mr. Rossow.
Due to the delay in development of the well site, a three-year lease agreement was settled upon by both parties.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Revenue received is budgeted for as part of the FY 2018/19 Parks and Recreation Budget.
ATTACHMENTS
1. Lease Agreement
2. Maps