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CITY COUNCIL AGENDA ITEM NO. 17


Meeting Date: December 12, 2000

Subject/Title: Preparation and Signature of Lease

Submitted by: Jon Elam, City Manager

Approved by: Jon Elam, City Manager

RECOMMENDATION
Motion to direct the City Attorney to prepare and City Manager to sign a lease for a parcel described as lots 8 & 9 in Block D (7,500 square feet) on Brentwood Blvd. from the Chevron Company at a rate of $1,000 per month.

PREVIOUS ACTION
None

COMMENTS
The City Council approved the purchase and construction of a City parking lot on lots 6 & 7 just south of the parcel being proposed. With the opening of the new Chevron Gas Station an excess parcel has become available. Chevron (see attached letter) has agreed to sub-lease this to us for a rate of $1,000 per month.

This would give us access to this parcel and give us a chance to double the parking lot parcel (from 17 to 34 cars). It is a bit unsettling though to build such a facility on leased property. The construction costs based on our bid on First Street might cost $130,000.

On the other side of the issue Chevron is prepared to sub-lease the parcel for up to 22 years. The life of something like a parking lot may not be that long give the growth and changes going on in downtown. Chevron no longer has a use for the property (they had thought they were going to do a car wash, but have subsequently dropped that idea). It may be possible thus to seek to purchase the parcel from the owner as an alternative. Even if we entered into an agreement to purchase the parcel over time that could in the long-term work out as well.

I’m adding this item to the Agenda for direction for the City Council

City Administration
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