Loading...
2 - Explore Continued Leasing or Sale of Town PropertiesDATE: TO: FROM: COUNCIL AGENDA REPORT September 28, 2011 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER MEETING DATE: 10/3/11 ITEM NO: SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXPLORE CONTINUED LEASING OR SALE OF TOWN PROPERTIES PENDING FURTHER DIRECTION FROM TOWN COUNCIL RECOMMENDATION: Authorize the Town Manager to explore continued leasing or sale of Town properties pending further direction from Town Council. BACKGROUND: Last February, Council adopted Strategic Goals for the 2011-13 period. Among these is the goal to: Sell/lease idle assets to create one-time or ongoing funding. Before entering into discussions (including discussions to renegotiate existing agreements), State law requires that the Town identify its negotiators, the real property which the negotiations may concern, and the persons with whom the negotiators may negotiate. The purpose of this report is to inform the community of the Town's intentions to explore the disposition of several Town properties. DISCUSSION: Attached is a table which identifies a number of real properties owned by the Town. These properties are either being leased to another party or have been identified as idle or under-utilized. The properties above the dark line are priorities, and those below the line are additional properties which could be considered as opportunities arise. With Council approval to proceed, staff will return to Council with initial recommendations and to obtain Council direction. Negotiations for sale or lease of properties may be the subject of Closed Session meetings. Although the Town Manager will serve as the chief negotiator, it is likely that he will delegate that authority to other staff to assist. PREPARED BY: Regina Fa, Deputy anager Reviewed by:.J Assistant Town Manager Town Attorney Finance N:\CSD\TCRPTS\2011 TCRPTS\properties Oct-1 I,doc PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO PROCEED WITH NEGOTIATIONS FOR THE LEASE OR SALE OF PROPERTIES September 28, 2011 In addition to realizing revenues from the properties and/or reducing expenses, there will be other Town and community objectives that should be considered during the negotiations. During the next few months, staff will return to Council in Closed Session to present the "guiding principles" for each of the properties staff recommends for follow-up; these will direct staff's discussions with potentially interested parties. It is anticipated that at least one of the properties will be considered for sale. Staff will work with the Town Attorney to assure Town compliance with any requirements associated with sale of municipally owned properties. Community outreach will be implemented appropriately for each property regardless whether it is leased or sold. A brief description of each of the properties and its current status is listed below. 75 Church St. and 4 Tait Ave.: These two historic buildings are leased by the Los Gatos Museum Association. The Church St. building is the remaining portion of the Forbes Mill and serves as the agency's History Museum. The Tait Ave. building is a retired fire station and serves as an Art Museum. The current, ten year lease agreement was executed in 1999; the lease agreement has been amended with three one-year extensions. The Museums pay $1/year in rent and receive $12,430 for janitorial and utility costs. Staff anticipates executing a new lease agreement with the Museum Association which either increases Town revenues or reduces Town expenses.. 4 New York Avenue: This building was constructed on Town owned property by the non-profit organization, A Place for Teens (APT), with community and Town contributions. The building is leased by APT and used by the non-profit agency as a teen center. The facility is currently called, "The Venue." Under the 20 year agreement, APT pays $1/year and is responsible for all maintenance costs. The Town has provided funding grants for teen center operations for at least the last ten years; the FY 2011/12 grant is $10.950. In addition, $88,000 was provided to the agency as an incentive for the agency to become self-sufficient. The current lease expires in February 2012 and staff anticipates entering into a long-term lease or other agreement with A Place for Teens, the High School, and/or LGS Recreation for the ongoing provisions of youth and teen services at no cost to the Town. 14850 Winchester Blvd.: A portion of this lot is used by the Santa Clara County Fire District for a fire station. The portion of the lot at the corner of Lark and Winchester is vacant. The Town has received a request from the Fire District for acquisition of the parcel for a new and expanded fire station. In addition, neighboring property owners have also orally expressed interest in potential acquisition of the site. 123 E. Main St.: Across the street from the Civic Center, this facility has been leased by LGS Recreation since the 1960's. The current lease agreement became effective July 2004 and has been extended twice; the second extension expires 12/31/11. LGS began leasing the former Neighborhood Center (208 E. Main St.) from the Town in January 2010 and has renamed it the Adult Recreation Center to reflect its Senior focus. Shortly thereafter, the 123 E. Main St facility was named the Youth Recreation Center to reflect its new focus. Staff anticipates negotiating a new long-term lease with LGS PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO PROCEED WITH NEGOTIATIONS FOR THE LEASE OR SALE OF PROPERTIES September 28, 2011 Recreation for this property which increases Town revenues and reduces Town costs associated with this property. 306 University Ave., 14850 Winchester Blvd., 16565 Shannon Rd.: These three properties are leased by the Santa Clara County Fire District and serve as fire stations. The lease agreements were executed in 1981 and expire in 2036. The rent is $5/year. Town staff anticipates considering the future sale of these properties to the Fire District as part of the discussion regarding the Winchester and Lark fire station discussed above. Novitiate Park: Novitiate Park is an open park with dirt jogging paths located at the end of Jones Road. It is also an an entry point to lands owned by the Mid -Peninsula Open Space District, including the St. Joseph's Hill and Lime Kiln trails. Transferring the property to the District could result in more efficient land management and improvements for the nearby residents and trail users. Neighborhood discussion would be held prior to consideration of any transfer of this property to the District. Los Gatos Creek Trail: This 10 mile trail offers opportunities for pedestrians, hikers, bicyclists, skaters and nature lovers. The complete trail extends from Lexington Reservoir above Los Gatos to Meridian Avenue in San Jose. There are a number of easements that need to be clarified between other public agencies such as Santa Clara Valley Water District and the City of Campbell. No change of uses are anticipated, simply a clean-up of existing boundaries and authority. Materials Yard: Located near the Corporation Yard on Miles Ave., this lot is used to store materials used by Parks and Public Works. While staff believes this parcel needs to remain as a materials yard, alternative proposals could be considered such as a dog park or increased parking for Downtown, the Creek Trail, and Balzar Field. CONCLUSION: Staff will proceed with development of guiding principles upon Council authorization to enter into discussions for the sale or lease of selected properties listed. These will be presented to Council for comment during subsequent Closed Sessions. ENVIRONMENTAL ASSESSMENT: This action is not a project defined under CEQA, and no further action is required. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO PROCEED WITH NEGOTIATIONS FOR THE LEASE OR SALE OF PROPERTIES September 28, 2011 FISCAL IMPACT: Initial efforts will focus on preparing guiding principles. Other than commitment of staff time, no costs are anticipated at this stage of the process. Although some of the transactions may require expenditures (appraisals, property inspections, etc.) the entire project is expected to result in a net financial gain to the Town. Attachments: 1. Property Summary Distribution: Los Gatos Museum Association, Penelope O'Neill A Place for Teens, Peggy Dallas Santa Clara County Fire Department, Kenneth R. Kehmna LGS Recreation, Steve Rauwolf Potential Properties for Lease or Sale, Pending Council Direction Property Address/APN Description Potentially Interested Parties 75 Church St 529-54-050 Forbes Mill History Museum (Leased by LG Museum Association) Los Gatos Museum Association 4 Tait Ave 510-44-054 Tait Art Museum (Leased by LG Museum Association) Los Gatos Museum Association 4 New York Ave 529-27-024 The Venue Teen Center (Leased by A Place for Teens) A Place for Teens Los Gatos -Saratoga Unified School District, LGS Recreation 14850 Winchester Blvd 424-31-055 Existing leased fire station and vacant lot at corner Santa Clara County Fire Department Other Adjacent Property Owners 123 E. Main St 529-28-005 Recreation Building (Leased to LGS Recreation) LGS Recreation �Eu (m i kz �'�Y* y him- � £ � ,t � e, T.4e�1�#vim }�Ss � .. } T v.o-"`.,z ' 3''7 'b "' - t ,;' - - d tcj k 4: $ bi �?�s��,.�. Al.,..��`ii�9��.� .:��3i r y %=, - .1,1, -_ }: , r y " i'�' _:�i�4v Yi1`�r � 'r- 444 °,,;r i as .�. 4 �er ` -i�'11 e �T- -1-, ., A:r •i` �`rsir'��cl�'�-�.��s��k�;�is#�e a.1-��33'i �.r �`,�,�.'.4� ..csX.�';.;.��;j 306 University Ave 529-05-020 16565 Shannon Rd 523-08-015 Other leased fire stations Santa Clara County Fire Department Novitiate Park on Jones Rd 529-30-065 & 537-02-066 Park adjacent to St. Joseph's Hill Open Space, with no parking provided Mid -Peninsula Open Space District San Jose Water District Los Gatos Creek Trail No APN's Multiple overlapping and adjacent jurisdictions providing trail use and access Cal Trans Santa Clara Valley Water District Miles Ave. Materials Yard 529-02-032 Used by Parks & Public Works for materials storage and use Parking provider Dog park provider Town Manager to serve as lead negotiator, reporting to Town Council Attachment 1 THIS PAGE INTENTIONALLY LEFT BLANK