8J Consent 2009 0706 - Laserfiche WebLink

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Auto Reader Board Amendment 2 June 30, 2009 December 15, 1997, made another minor adjustment to the definition of the subject property to reflect the location of the actual reader board sign. A Third Amendment, executed on June 10, 2002, extended to term of the Lease from twenty to forty years, thus extending the termination date of the agreement from June 1, 2017 to June 1, 2037. The Third Amendment further stipulated that, commencing on June 1, 2017 the Tenant shall make an annual payment of rent equal to ten percent of the land value of the premises as determined by an appraiser or economic consultant. As noted above, the Fourth Amendment to the Lease adds a second permitted use for a Leasehold Deed of Trust encumbering the Tenant's leasehold estate. The first permitted use was a loan of up to $250,000 for the purchase of the reader board sign, with the combined term of the loan and any extensions not exceeding ten years, and with maturation no later than the eleventh year of the Lease term (2008). The proposed amendment would permit a second loan to be used for operation of the Tenant's adjacent automobile dealerships. The second loan is permitted in an amount not exceeding $1,250,000, with the combined term of the loan and any extensions not exceeding fifteen years, and with maturation no later than the 35th year of the Lease term (2032). The impact of this expanded right will be to increase the Tenant's access to capital to be used for the ongoing operation of the automobile dealerships. Current City Council Policy -Not Applicable Previous City Council Action(s) -Not Applicable City Council Committee Review and Action -Not Applicable Applicable General Plan Policy -Not Applicable Permits and/or Variances Granted -Not Applicable Environmental Review -Not Applicable Code Compliance Review -Not Applicable Board/Commission Finding -Not Applicable Summary of Public Outreach Efforts -Not Applicable Fiscal Impact -Not Applicable Budget Authority- Not Applicable Attachments -Not Applicable CONCLUSION Staff recommends that the Redevelopment Agency Board approve fourth amendment to the Ground Lease for the Automall Reader Board Sign and authorize the Executive Director to execute an accompanying Memorandum of Lease between the Redevelopment Agency of the City of San Leandro and The Batarse Family Trust.