SR-502-002-03 (2)
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NOV 1 4 1989
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srI ease
Council Meeting: November 14, 1989
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to
Negotiate and Execute a Lease Agreement with Windward
School for Use of City-owned Property
INTRODUCTION
This report recommend~ that the City of Santa Monica negotiate
and execute a new thirty-year lease agreement with Windward
School for the use of City property adjacent to the Charnock well
fields in West Los Angeles. The proposed provisions of the new
lease will allow Windward School to construct a gymnasium on City
property, will increase lease payments, and will provide the City
of Santa Monica access to the recreational facilities located on
the property leased by windward School.
BACKGROUND
The City owns approx~mately seven acres of land in West Los
Angeles on which are located various City water wells. The
property is occupied by a number of small buildings which house
several water wells, a power sub-station, sand-settling basin,
water treatment facility and operations control room.
In August 1982, the City council authorized the City Manager to
execute a lease to allow Windward School to utilize 55,733 square
feet of unused land for recreational purposes. The benefit to
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the City was the reduction
generation of monthly income.
existing lease are as follows:
of maintenance costs
The main provisions
and
of
the
the
l. Annual rental fee based on the City's property tax bill,
currently $15,000 per year.
2. No permanent structures are allowed.
3. Lessee must maintain the site.
4. Lessee may use the property for recreational activities
(soccer, baseball, basketball and tennis).
New Lease Discussions
Recently, Windward School approached the city to discuss the
construction of a gymnasium on a portion of the leased property.
Since there is currently no provision in the existing lease for
the building of such a structure, City staff advised Windward
School that permission would need to be granted by the Ci ty
Council to negotiate a new contract. Windward School was also
advised that staff would recommend to the council that lease
payments on land associated with the gymnasium (11,000 sq. ft.)
be based on rental value of the property and not on property
taxes billed. The remaining 44,733 square feet lease amount
would be based on the property tax since the land will continue
to be used for recreational activities with no permanent
structures. After discussions between staff and the Windward
School, the following maj or provisions were tentatively agreed
upon.
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1. Windward School may construct a gymnasium on the Charnock
Well property. Upon termination of the lease, the City will
assume ownership of the gymnasium.
2. Windward School's lease payment will increase from $1,250 to
$3,000 per month, with a 7% escalation clause each year
thereafter.
3. Windward School will allow the City to use all the
recreational facilities, including the gymnasium, located at
the Charnock property. Staff has determined that the cost to
the City of leasing a gym of comparable size would be at
least $50 per hour. The City is anticipating using the
Windward School gym for 31 hours a week which translates into
a value to the City of approximately $6,000 per month.
4. windward School will provide on-site full time security
staff. (Staff believes this will be advantageous to the City
since the site contains several water facilities which
produce the majority of well water for the City.)
BUDGET/FINANCIAL IMPACT
Approval of this lease is expected to generate $10,500 in net
additional revenue in FY 1989-90 for revenue account number
25-500-671-00000-0235-1000 (assuming contract is signed by
January I, 1989). The net additional revenue in the account for
the succeeding fiscal year is anticipated to be $22,260.
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