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File #: 19-485    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 8/16/2019 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 9/16/2019 Final action: 9/16/2019
Title: SUBJECT: Approval of an Agricultural Ground Lease Between the City of Merced and Fagundes Dairy for Use of Approximately Thirty-Five (35) Acres in and Around the Merced Airport Industrial Park with Rent Starting at $ 5,250.00 per Year for a Term of Three (3) Years, with Annual Extensions by Mutual Agreement of Both Parties REPORT IN BRIEF Considers a lease agreement (3-year term with annual extensions by mutual agreement of the parties) with Fagundes Dairy for use of approximately thirty-five (35) acres located in and around the Merced Airport Industrial Park. RECOMMENDATION City Council - Adopt a motion approving the lease agreement between Fagundes Dairy and the City of Merced and authorizing the City Manager or the Assistant City Manager to execute all necessary documents.
Attachments: 1. Fagundes Dairy Lease Agreement

Report Prepared by: Karen Baker, Development Associate, Merced Visitor Services

Title
SUBJECT: Approval of an Agricultural Ground Lease Between the City of Merced and Fagundes Dairy for Use of Approximately Thirty-Five (35) Acres in and Around the Merced Airport Industrial Park with Rent Starting at $ 5,250.00 per Year for a Term of Three (3) Years, with Annual Extensions by Mutual Agreement of Both Parties

REPORT IN BRIEF
Considers a lease agreement (3-year term with annual extensions by mutual agreement of the parties) with Fagundes Dairy for use of approximately thirty-five (35) acres located in and around the Merced Airport Industrial Park.

RECOMMENDATION
City Council - Adopt a motion approving the lease agreement between Fagundes Dairy and the City of Merced and authorizing the City Manager or the Assistant City Manager to execute all necessary documents.

Body
ALTERNATIVES
1. Approve as recommended; or,
2. Approve, subject to modifications as conditioned by Council; or,
3. Deny the request completely; or
4. Refer back to staff for reconsideration of specific items as requested by Council; or,
5. Continue item to a future Council meeting (date to be specified in City Council motion).

AUTHORITY
Charter of the City of Merced, Section 200.

CITY COUNCIL PRIORITIES
City of Merced adopted Budget Fiscal Year 2019-2020.

DISCUSSION
The City of Merced owns property north and south of the runway located at Merced Regional Airport. The property was acquired to protect the takeoff and landing flight lines at the Merced Regional Airport from dense or incompatible land uses, and is zoned as Restricted Agriculture, A-1-20. Other than agriculture, land uses such as residential, commercial, and industrial are restricted, which is consistent with the Merced Airport Master Plan.

The Merced Regional Airport has had an agricultural ground lease with Fagundes Dairy, a local ranching Family, for approximately 35 acres, currently farming alfalfa. Fagunde...

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