AKOBOFF, CHARLIE-1989 - Laserfiche WebLink

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MEMORANDUM To: Deputy City Manager Executive Director/ From: Community Development Agency Subject: LEASE AGREEMENT WITH CHARLIE AROBOFF STATEMENT OF THE ISSUE Date: May 17, 1989 In July 1961, the City acquired 1.73 acres of land located south of First Street, between Newhope and Shannon Street. The flag -shaped parcel currently houses the west reservoir. For years the only access to the back portion of the property was by way of a 20' X 426' strip which proved to be inadequate for vehicular traffic. For this reason, in April 1965, Mountain View Street was extended south of First Street to provide better access to the reservoir. The strip has remained vacant and no longer serves as access. Mr. Charlie Akoboff, owner of Charlie's Foods, operates a business adjacent to the unimproved City property. He has approached City staff with the proposal to lease said property. City staff has negotiated an agreement with Mr. Akoboff to lease the unimproved property located on the south side of First Street, east of Mountain View, for the purpose of additional off-street parking. Mr. Akoboff will be responsible for all costs pertaining to the improvements of the property. The initial term of the lease shall be for five years, with an option for two additional five-year periods with mutual consent. Mr. Akoboff must exercise his option to renew the lease in writing, six months prior to the termination of the initial term of the lease. The contract rent shall be $208 per month, with a CPI adjustment at the renewal dates. ALTERNATIVES CONSIDERED The alternative considered is not to enter into this agreement and let the property remain unimproved and not generating any revenues for the City. This alternative was rejected. FISCAL IMPACT The $12,480 which will be generated by this agreement during the initial five-year term of the lease will be deposited into the general fund account for the rental of property (Account No. 11-511). 085 CS -808