8G Consent 2011 0906 - Laserfiche WebLink

Home

CITY OF SAN LEANDRO STAFF REPORT DATE: September 6, 2011 TO: Lianne Marshall, Interim City Manager FROM: Uchenna Udemezue, P.E., Dire( Engineering and Transportation APPROVED AND FORWARDED TO CITY COUNCIL Lianne Marshall Interim City Manager BY: Tara H. Peterson, Administrative Services Manager Engineering and Transportation Department SUBJECT PROJECT /PROJECT DESCRIPTION: RESOLUTION APPROVING A SUBLEASE AGREEMENT WITH WHITE CAP CONSTRUCTION SUPPLY FOR THE BEECHER STREET OVERPASS LEASE AREA. SUMMARY AND RECOMMENDATION Staff recommends that the City Council authorize a five -year sublease with an option for a five- year extension with White Cap Construction Supply for the sublease of airspace under the overpass of Davis Street at Beecher Street, commonly referred to as Freeway Lease Area No. 04- ALA- 112 -01. BACKGROUND Analysis The area is approximately 11,900 square feet of land that lies underneath the Davis Street Overpass between Warden Avenue and Beecher Street. On October 1, 1984, the City entered into a 99 -year lease with Caltrans for the site for a one -time payment of $500. TransBox Systems leased the space for a number of years, but has gone out of business. White Cap Construction Supply currently leases the airspace across the street from this site directly from Caltrans and would like to expand into the airspace leased by the City. White Cap will pay the City $600 per month to sublease the space. The term of the sublease will be from August 1, 2011 to July 31, 2016, for a total rental amount of $36,000. The sublease agreement stipulates that the sublessee, White Cap, may extend the lease by another five (5) years at the mutual consent of both parties. If White Cap elects to renew the sublease, the monthly rental fee amount will increase by 10 %, or $60 per month, for the first year and will be adjusted each year