SR-06-14-1994-6KEPWM:CP:JRM:vr
windleas.vcr
Council Meeting: June 14, 1994 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate
and Execute a Lease Amendment with Windward School for
Use of City -owned Property
Introduction
This report recommends that the City of Santa Monica negotiate and
execute a thirty -year (30 -year) lease amendment with Windward
School for the use of City property adjacent to the Charnock well
fields in West Los Angeles. The proposed provisions of the lease
amendment will allow Windward School to construct additional
classrooms, a student Pavilion and restroom facilities on City
property. The amendment will also increase monthly rental payments
to the City, and will continue to provide the City of Santa Monica
access to the recreational facilities located on the property
leased by Windward School.
Background
The City owns approximately seven acres of land in West Los Angeles
on which are located various City water wells housed in a number of
small buildings. The property also contains a power sub - station, a
sand - settling basin, a chlorination facility and an operations
control room.
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In August 1982, the City Council authorized the City Manager to
execute a 40 -year lease to allow Windward School to utilize 55,733
square feet of unused land for recreational purposes. The benefit
to the City was a reduction in maintenance costs and the generation
of a monthly income.
In June of 1990, a new lease was negotiated to allow the school to
construct classrooms and gymnasium facilities, and to continue
their use of the land for recreational purposes. A condition of
the lease provided the City shared use of the gymnasium and
athletic fields at no cost to the City. As a result, the
Community and Cultural Services Department was able to offer City
residents several new recreational programs at this site.
Discussion
Recently, Windward School representatives requested permission to
construct additional classrooms and other student facilities on a
portion of the leased property. Since the existing lease does not
provide for the building of such structures, City staff advised the
School representative that permission would need to be granted by
the City Council to negotiate an amendment to the lease agreement.
Windward School was also advised that staff would recommend to the
Council that monthly rental payments for the newly constructed
premises be increased relative to its increased property value.
After discussions between staff and the Windward School, the
following major provisions were tentatively agreed upon.
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1. Windward School may construct additional classrooms and
student facilities on the property currently leased by them.
Upon termination of the lease, the City will assume ownership
of all facilities constructed by Windward School on City land.
2. Windward School's annual lease payment will increase in 1995
from $48,840 per year to $72,000 per calendar year, in 1996 to
$84,000 per calendar year, and in 1997 to $96,000 per calendar
year. Starting in 1998, the 1997 base rent of $8,000 /mo. will
be adjusted according to the Consumer Price Index (CPI) and
annually thereafter at the lease commencement date of January
1.
3. Windward School will continue to allow the City to use all the
recreational facilities, including the gymnasium, located on
the leased property. Staff has determined that the cost to
the City of leasing a gym of comparable size would be at least
$60 per hour. The City is allowed to use the Windward School
gym for 31 hours a week which represents a value to the City
of approximately $90,000 per year.
4. Windward School provides full -time on -site security staff.
This is an advantage to the City since the site contains
several water facilities which produce the majority of well
water for the City.
P
Budget /Financial Impact
Approval of this amendment is expected to generate $10,752 in net
additional revenue in FY 1994/95, $25,740 in FY 1995/96 and $34,086
in FY 1996/97 for revenue account number 25- 500 -671- 00000 -0235-
10000.
Recommendation
It is recommended that the City Council authorize the City Manager
to negotiate and execute a lease amendment with Windward School for
use of City owned property.
Prepared By: Craig Perkins, Director of Environmental and Public
Works Management
John R. Mundy, Utilities Manager
(windleas.vcr)
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