SR-910-000
->
e
-
(,-:T
SEP 1 9 1989
f/CJ-~t?CJ
GS:SES:SM Santa Monica, California
council Meeting: September 19, 1989 .
~ '0 ..-,,~,-,
..,., y v ~ ....'
TO:
Mayor and city Council
"
FROM:
city staff
SUBJECT:
Recommendation to Authorize the City Manager to
Renegotiate and Execute a Lease with pioneer
Boulangerie for Use of city-owned Property
INTRODUCTION
This report recommends that City council authorize the City
Manager to renegotiate and execute a lease agreement with the
pioneer Boulangerie for the use of City property for parking
purposes.
BACKGROUND
In 1981, the city entered into a 7 year agreement with Pioneer
Boulangerie for the lease of City property for parking. The
leased property is a narrow strip on the east side of Nielson Way
between Bay and Bicknell Streets varying in width from 3 to 25
feet. The City originally acquired the property as part of a
plan to widen Neilson Way, but later decided not to proceed with
the proj ect .
Because of its small size, the parcel cannot be
used for other purposes.
Under the terms of the original lease agreement, Pioneer
Boulangerie made approximately $9,000 worth of improvements to
the property in landscaping and construction of a public
sidewalk, the cost of Which was offset against the lease payment.
Rent was set at $250 per month with an annual adjusted increase
- 1 -
(,-:r
SEP 1 91988
~
.
.
based on the Consumer price Index. The current rent is $487.17
per month.
Although the term has expired, the contract has continued on a
month-to-month basis while staff determined the property's fair
market value.
staff evaluated the lease agreement based on
current market values for land and rental costs for parking in
this area of Santa Monica. A rental agreement of $950 per month
with an annual adjusted increase based on changes in the Consumer
Price Index was determined to be an equitable compensation for
the property. This amount was arrived at by first calculating
the number of usable parking spaces which could be made available
for the public on the parcel (19 spaces).
This number of
potential parking spaces was then multiplied by the current
monthly permit parking rate for the city's Main street parking
lots ($50jmonth) which results in a $950 per month lease amount.
A 5 year lease will not preclude City plans for use of the
property to widen Nielson Way at some point in the future.
BUDGET/FISCAL IMPACT
Assuming execution of the lease effective November 1, 1989 under
the
terms
described
above,
revenues
in
account
43-500-401-00000-0077-10000 will increase by $3,703 for FY89-90.
RECOMMENDATION
~
It is recommended that the City Council authorize the City
Manager to renegotiate and execute a five-year lease agreement
with Pioneer Boulangerie for use of City property at $11,400 per
- 2 -
~
~
.
.
year with an adjusted increase based on changes in the Consumer
Price Index.
Prepared by: stan Scholl, Director of General Services
Susan Munves, Administrative Analyst
t
- 3 -