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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 21, 2019 <br />TITLE: <br />APPROVE A TWO-YEAR LICENSE <br />AGREEMENT WITH AN AUTOMATIC <br />MONTHLY RENEWAL FOR AN <br />ADDITIONAL THREE YEARS FOR $561,200 <br />WITH DYER BUSINESS PARK, LLC FOR <br />THEIR USE OF THE EAST ALTON AVENUE <br />/ SOUTH STANDARD AVENUE PARCEL <br />{STRATEGIC PLAN NO. 31 <br />ClfY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1a Reading <br />❑ Ordinance on 20d Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council to execute a license agreement with Dyer <br />Business Park, LLC, for a monthly license fee of $9,200, for use of real property owned by the City <br />at the eastern terminus of Alton Avenue between Standard Avenue and the SR -55 Freeway, for a <br />two-year term commencing on May 22, 2019, and expiring May 21, 2021, which will automatically <br />renew month to month thereafter for an additional three years, for a maximum of $561,200, subject <br />to non -substantive changes approved by the City Manager and City Attorney. The revenue will be <br />deposited into the Select Street Construction — Gas Tax, Rental of Property revenue account. <br />DISCUSSION <br />On April 8, 2019, the City issued Request for Proposal (RFP) 19-007 seeking qualified firms wishing <br />to enter into an exclusive license agreement to utilize the City property located at the eastern <br />terminus of Alton Avenue and the SR -55 Freeway (Property). The Property is 86,626 square feet, <br />with approximately 66,546 square feet net usable land area, exclusive of the portion which lies <br />within an unimproved flood channel. <br />In partnership with the City of Irvine, the City has future plans to construct a new overpass at the <br />SR -55, linking the cities of Santa Ana and Irvine at Alton Avenue. The subject property is included <br />within the overpass project area; however, construction is not expected to begin for another three <br />to five years. Thus, the property is expected to be available for uninterrupted use by the licensee <br />until construction commences. The agreement (Exhibit 1) includes a 60 -day cancellation notice to <br />allow for maximum scheduling flexibility. <br />The RFP for use of the site was posted on PlanetBids and 42 vendors were notified via the <br />PlanetBids portal. In addition, notification was mailed to 388 Santa Ana businesses and residents <br />25F-1 <br />