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File Number: 13-126 <br />The Agency’s and the Chamber’s negotiations culminated in a Lease with Option to Purchase <br />Agreement dated September 2, 2008. Following are the major deal points of that agreement: <br />·The Agency would lease, with an option to purchase, the Chamber Property for a <br />period of up to three (3) years at $2,900 per month. <br />·The Agency agreed to build the Chamber a 2,000 square foot Class B office <br />condominium on the ground level of 120 Estudillo Avenue in the new parking garage <br />that was to be built. The City, as owner of the garage, would charge no condominium <br />association fees. Three parking spaces in the garage were to be made available to the <br />Chamber at no charge. The office space would have separate utilities , such as water, <br />electricity, gas, communications, and sewer. The Chamber would be responsible for <br />user fees and the maintenance and repair of all utilities. <br />·The Chamber agreed to allow the Agency to demolish the office building on its Property <br />for temporary parking. The Agency paid all costs associated with the demolition . <br />·The Chamber elected to receive $10,000 in lieu of making any and all relocation claims <br />and receiving payment for any and all such benefits to which the Chamber may have <br />been entitled when it relocated its offices from 262 Davis Street. <br />·Upon issuance of an occupancy permit, a concurrent escrow closing would occur to <br />exchange the Chamber Property for the Agency office condominium in the garage . <br />The Agency agreed to pay the Chamber an additional $10,000 to cover costs <br />associated with the relocation and re-establishment of its offices at the garage . <br />·The 2008 agreement was for a term of three years, with a two (2) year option to extend <br />should the City not complete the garage within three years. <br />Analysis <br />When the 2008 agreement was reached, it was envisioned that the Chamber of Commerce <br />would have an office condominium within the garage structure . As the garage was built, staff <br />determined that rather than a condominium, a Vertical Parcel Map splitting off the Chamber’s <br />office from the remainder of the parking structure with a reciprocal easement agreement <br />between the two parties to address utilities, parking, and access would be a less cumbersome <br />approach. No association would need to be formed nor assessments levied and funded. The <br />City’s property and the Chamber’s office space would be identified as separate lots on the <br />Parcel Map. The Chamber agreed to this approach. <br />The Reciprocal Easement Agreement and Declaration of Covenants , Conditions, and <br />Restrictions outlines all of the rights and responsibilities of the City and the Chamber as it <br />relates to the Office Parcel , including details about use, maintenance, and access. Use: <br />Included in the terms of use are allowances and restrictions concerning signage, <br />accommodating repairs or improvements to each parcel, and the proper use of the parcels <br />and easement areas. Maintenance: Each party is expected to maintain its parcel and to <br />adhere to certain standards, including those for cleanliness, storage, and exterior appearance. <br />Access: The City grants the Chamber easements for access to all public areas within the <br />Garage and for its Waste Room, Mechanical Equipment Area , and Parking spaces. Each <br />party is granted Utility and Service Easements for its Utility Facilities. <br />Page 2 City of San Leandro Printed on 3/26/2013