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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />1, 2020 <br />TITLE: <br />APPROVE A LICENSE AGREEMENT <br />WITH K&C LOGISTICS, LLC FOR THEIR <br />USE OF THE CITY -OWNED WEST ALTON <br />AVENUE / SR-55 FREEWAY PARCEL IN <br />THE AMOUNT OF $264,000 FOR A <br />MAXIMUM TERM OF FIVE YEARS <br />(NON -GENERAL FUND) <br />/s/ Kristine Ridge <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1" Reading <br />❑ <br />Ordinance on 2n' Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute a license agreement with K&C Logistics LLC for use of real <br />property owned by the City at the terminus of Alton Avenue between Daimler Street and the SR- <br />55 Freeway, for a two-year term beginning on December 1, 2020, and expiring November 30, 2022, <br />which will automatically renew month -to -month thereafter for an additional three years, for a <br />monthly license fee of $4,400, and total revenue amount of $264,000, subject to non -substantive <br />changes approved by the City Manager and City Attorney. The revenue will be deposited into the <br />Select Street Construction, Rental of Property revenue account. <br />DISCUSSION <br />In November 2020, K&C Logistics LLC approached the City to enter into an exclusive license <br />agreement to utilize the City property located at the western terminus of Alton Avenue and the SR- <br />55 Freeway (Exhibit 1). The property is 49,330 square feet, with approximately 31,700 square feet <br />net usable land area, exclusive of the eastern portion which is used as a decorative landscape <br />area. <br />In partnership with the City of Irvine, the City of Santa Ana has future plans to construct a new <br />overpass at the SR-55, linking the cities of Santa Ana and Irvine at Alton Avenue. The subject <br />property is included within the overpass project area; however, construction is not expected to <br />begin for another three to five years. Thus, the property is expected to be available for uninterrupted <br />use by the licensee until construction commences. To allow for maximum scheduling flexibility, the <br />agreement includes a 60-day cancellation notice. <br />FISCAL IMPACT <br />This agreement will result in revenue of $4,400 per month into the Select Street Construction, <br />Rental of Property revenue account (No. 05917002-57960). The agreement will commence on <br />December 1, 2020 and expire November 30, 2022. The agreement will automatically renew each <br />25F-1 <br />