File #: 22-486    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 6/8/2022 In control: City Council/Public Finance and Economic Development Authority/Parking Authority/Successor Agency to the Redevelopment Agency
On agenda: 7/18/2022 Final action: 7/18/2022
Title: SUBJECT: Approval of a Three-Year Lease Renewal Option for 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 Yosemite Regional Airport with Rent Starting at $5,355.00 per Year for a Term of Three (3) Years REPORT IN BRIEF Considers a lease agreement (3-year term) with Fagundes Dairy for use of approximately thirty-five (35) acres located in and around the Merced Yosemite Regional Airport. 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 Deputy City Manager to execute all necessary documents.
Attachments: 1. Fagundes Dairy Lease Agreement, 2. Original Lease Agreement.pdf

Report Prepared by: Karen Baker, Development Associate, Merced Yosemite Regional Airport

Title
SUBJECT: Approval of a Three-Year Lease Renewal Option for 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 Yosemite Regional Airport with Rent Starting at $5,355.00 per Year for a Term of Three (3) Years

REPORT IN BRIEF
Considers a lease agreement (3-year term) with Fagundes Dairy for use of approximately thirty-five (35) acres located in and around the Merced Yosemite Regional Airport.

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 Deputy 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 2022-2023.

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 Yosemite 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 Yosemite Regional Airport has had an agricultural ground lease with Fagundes Dairy, a local ranching Family, for approximately 35 acres, currently farming alfalfa. Fagundes Dairy has indicated that they would like to contin...

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