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Public Works Agency <br />www.santa-ana.org/public-works <br />Item # 31 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />August 20, 2024 <br />TOPIC: License Agreement for the Use of City -Owned Parcels <br />AGENDA TITLE <br />License Agreement with K&C Logistics, LLC for their use of City -Owned East and West <br />Alton Avenue/SR-55 Freeway Parcel <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute a license agreement with K&C Logistics, LLC for <br />use of real property owned by the City at the western terminus of Alton Avenue between <br />Standard Avenue and the SR-55 Freeway and at the eastern terminus of Alton Avenue <br />between Daimler Street and the SR-55 Freeway, for a three-year term beginning August <br />20, 2024 and expiring August 19, 2027, automatically entering into a month -to -month <br />renewal thereafter for an additional two years, for a total revenue amount of $1,590,640 <br />(Agreement No. A-20024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Public Works Agency (PWA) owns and manages two vacant lots for the purpose of <br />a future freeway overpass bridge. In the meantime, the City leases these lots to various <br />commercial users. On December 1, 2020, the City Council approved an exclusive <br />license agreement with K&C Logistics to utilize the City property located at the western <br />terminus of Alton Avenue and the SR-55 Freeway (Exhibit 1) in the amount of $4,400 <br />per month for the use of the City -owned vacant lot. The property is 49,330 square feet, <br />with approximately 31,700 square feet net usable land area. <br />The City plans to construct a new overpass at the SR-55, linking the cities of Santa Ana <br />and Irvine at Alton Avenue. The subject property is included within the overpass project <br />area. However, construction is not expected to begin for another three to five years. <br />Thus, the property is expected to be available for uninterrupted use by the licensee until <br />construction commences. To allow for maximum scheduling flexibility, the agreement <br />includes a 60-day cancellation notice option. <br />Recently, the lot located in the eastern terminus of East Alton Avenue between <br />Standard Avenue and the SR-55 became vacant. City staff reached out to K&C <br />Logistics regarding the vacancy, whereby K&C Logistics expressed their interest in <br />