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HomeMy WebLinkAboutItem 2g - Lease agreement for 48 parking spaces in the City HallDevelopment Services Department DATE: August 20, 2013 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director By: Philip A. Wray, Deputy Dir. of Development Services /City Engineer SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH VG PROPERTY INVESTMENTS, LLC, FOR THE LEASE OF 48 PARKING SPACES IN THE CITY HALL PARKING LOT Recommendation: Approve SUMMARY In February, the City Council approved the development of new medical office buildings and a parking structure at 125 West Huntington Drive and 161 Colorado Place. The property currently has one large office building (Parsons) that will remain during and after the construction. During construction, approximately 60 parking spaces from the existing parking lot will be displaced. The property owner, VG Property Investments, LLC, (VGPI), has asked the City for the use of up to 60 parking spaces at City Hall as temporary replacement parking to offset the loss onsite. It is recommended that the most northwesterly 48 parking spaces adjacent to the City Hall Soccer Field be offered for lease at $50 per space per month for a total of $2,400 per month. This would leave adequate space for City Hall employees and patrons as well as parking for the soccer field usage during the daytime. It is recommended that the City Council authorize the City Manager to enter into an agreement with VG Property Investments, LLC for the lease of 48 parking spaces in the City Hall parking lot on a month -to -month basis. Authorize Lease Agreement with VG Property August 20, 2013 Page 2 of 3 BACKGROUND In late 2006, Parsons Energy and Chemical Group (PECG), made a request to the City to lease 30 parking spaces at City Hall due to their lack of onsite parking spaces for their building at 125 West Huntington Drive. On February 6, 2007, the City Council entered into a lease agreement with PECG for the 30 parking spaces at the far northwest end of the City Hall parking lot. Signs were installed to alert the public that the 30 spaces were reserved. PECG's usage was very sporadic, and eventually non- existent; the lease was terminated within a year. On January 8, 2013, and February 5, 2013, respectively, the Planning Commission and the City Council approved the development of new medical office buildings and a parking structure at 125 West Huntington Drive and 161 Colorado Place. The existing office building at 125 West Huntington Drive will remain during and after construction. The contractor is nearly ready to begin construction and has determined that they will need to take a portion of the existing parking lot at 125 West Huntington Drive to stage construction and store materials. VGPI intends to keep the existing office building in business during construction and has inquired with surrounding property owners, including the City, for the use of temporary parking. They contacted Santa Anita Race Track for use of their parking lot, but found that the requirements were too extensive and the pedestrian access to the lot was circuitous and not well delineated. The northerly point of the City Hall parking lot is in a direct line, approximately 620 feet from the VGPI property, and approximately 360 feet further away from the building than the Santa Anita Inn parking lot, which they also currently use. DISCUSSION Upon review, it has been determined that the far northwesterly area of the City Hall parking lot is underutilized in the daytime and could be made available for lease. There are 66 parking spaces in the most northwesterly aisle. On a typical weekday, no more than four or five spaces are occupied, and many other spaces are available in the balance of the lot. The soccer field north of the parking lot is frequently used, but it does not generate a great demand for parking before 5:00 p.m. Very seldom are there other events on site that utilize the parking in the most northwesterly aisle. As such 48 spaces adjacent to the west side of the soccer field could be offered to VGPI without impacting City operations. (See attached map.) This would leave 18 parking spaces in the last aisle for public use. Periodically, there may be events or meetings that generate the need for some of the parking. In these situations, the lease includes provisions for mutual agreements between the two parties to accommodate the City's needs. VGPI has requested the use of the parking for eight to twelve months. The parking spaces would be designated for exclusive use Monday through Friday from 7:00 a.m. to 5:00 p.m. and non - exclusive use for all other times. It is recommended that several conditions be placed on the lease as follows: Authorize Lease Agreement with VG Property August 20, 2013 Page 3 of 3 • No use of the parking spaces will be allowed on the Friday and Saturday of Breeders Cup (November 1 and 2, 2013). • For the Concerts in the Park events in 2014, the parking spaces shall become non - exclusive at 3:00 p.m. • The City shall provide VGPI at least ten (10) day notice of parking lot resurfacing projects. VGPI shall agree to vacate the parking spaces for the time required by the City to complete the resurfacing project. • For other special events or activities that require excessive parking, the City and VGPI shall mutually agree on any modifications to the exclusive /non - exclusive rights periods. It is recommended that the City Council authorize the City Manager to enter into an agreement with VGPI for the lease of 48 parking spaces at $50 per month in the City Hall parking lot on a month -to -month basis. The rate of $50 is based on the rate used in 2007 adjusted to current dollars using the "Los Angeles - All Urban Consumers" price index for the month of June (the most recent data available). The 2007 rate was based on the previous owner's lease with the Santa Anita Inn for parking spaces. The stalls would be identified with a sign entering the area, and easily identifiable markings on the pavement. The lease would also include the City's typical insurance provisions, including hold harmless and indemnification language protecting the City from any claims filed as a result of the lease. FISCAL IMPACT There is no cost to the City other than processing the agreement. The revenue to the City will be $2,400 per month or $28,800 per year. RECOMMENDATION Authorize and direct the City Manager to execute a Lease Agreement with VG Property Investments, LLC, for the lease of 48 parking spaces in the City Hall Parking Lot. Approved, Dorninio Lazzare�td Clfy Manager Attachment: Location Map — Exhibit "A" CITY OF ARCADIA U1 � �FFO R,C9d, 0 ,'n'nnc otH °�¢0 DEVELOPMENT SERVICES DEPT. ENGINEERING DIVISION O� O� J� lb' _ p hL CITY HALL PARKING- LOCATION MAP EXHIBIT A F 13 NO TH DRAWING NO. 1