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Approval of Ground Lease Agreement with Rancho Santiago Community College District <br />October 15, 2019 <br />Page 2 <br />term continuation of the College and to facilitate substantial investment by the College, the City <br />began the process required by NPS to secure a long-term lease. That process required the <br />replacement of equivalent park land. <br />During the license agreement extensions, the College and City entered into two separate <br />reimbursement agreements in which the College would reimburse the City up to $634,000 for the <br />needed land conversion to meet the NPS's requirements. The replacement of the equivalent <br />parkland was the final step to complete the documentation for submittal to NPS, if approved, the <br />deed conditions for the land upon which the Center is located would be transferred to the new <br />replacement parks sites. <br />The conversion involves the construction and operation of replacement parklands in lieu of 2.6- <br />acre, the size of the site leased to Rancho Santiago Community College District in Centennial <br />Park. The replacement parklands include three park sites, the 6th Street Site, Raitt Street Site, <br />and McFadden Site/Pacific Electric Park. The City constructed Pacific Electric Park on the <br />McFadden Site, and the Pacific Electric Park opened in January 2018. Therefore, the remaining <br />work involves construction and operation of two replacement parks on the 6th Street Site and the <br />Raitt Street Site in the City of Santa Ana. <br />Concurrent with this process the College is taking steps to undertake a bond issue of which a <br />portion of the proceeds, approximately $50 million would be invested in the education center at <br />Centennial Park. Due to the short timeframe to place the bond issue out for consideration to the <br />voters, the College is seeking the finalization of a long term lease. <br />The terms of the lease would be similar to the terms of the current and previous license <br />agreements, with the following distinct differences: <br />The 85-year lease term would be conditioned upon the NPS approval of the lease or of a <br />land conversion related to the deed restrictions. <br />The lease term would also be contingent on substantial capital investment commenced <br />within a specified time period. <br />The new campus will provide for a community benefit in the form of a community meeting <br />room, a branch library and classrooms. <br />A one-time capital contribution of no less than one million ($1,000,000). <br />The share of operation and maintenance costs of common area will increase from 7.4% to <br />25%. <br />75B-2 <br />