200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-4544
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: DECEMBER 5, 2023
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: RIGHT OF ENTRY AND LICENSE AGREEMENT WITH JJTS, INC. (DBA JR WHEELS AND TIRES) FOR USE OF THE
PROPERTY AT 1687 W. LINCOLN AVENUE
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve a Right of Entry and License Agreement (Agreement), in substantial form attached, by and between the City of Anaheim (City) and JJTS, INC., dba JR Wheels & Tires (Licensee), with a monthly license fee of $5,500, for the commercial building and property located at 1687 W. Lincoln Avenue, for a term not to exceed three years; and authorize the Director of Economic Development, or designee to execute and implement the terms of the Agreement; and authorize de minimis changes that do not substantially change the terms and conditions of the Agreement, as long as such changes are determined to be de minimis by the City Attorney’s Office.
DISCUSSION:
In February 2023, city staff received a request from Licensee for the use of the City property located at 1687 W. Lincoln Avenue (Subject Site). Licensee operates JR Wheels and Tires at an adjacent property located at 1695 W. Lincoln Avenue. Licensee is in need of additional space to expand their business operations.
The Subject Site is a former Successor Agency property that was identified as a Future Development Property in the Long Range Property Management Plan approved by the State of California at the time of the dissolution of the Anaheim Redevelopment Agency, and was later transferred to the City. The Subject Site is impacted by subsurface environmental contamination sourced from an adjacent property to the east. Economic Development staff is working to identify funding required for the clean up of the Subject Site and to implement a clean-up plan. It is anticipated that the process required for the clean up of the Subject Site will take between 24 and 36 months. During that time, the Subject Site cannot be disposed of and only short term leases or license agreements can be entertained. A vacant property will trigger security and property management costs due to existing conditions in the area. Use of the building by Licensee will help reduce operating costs associated with property management and security. Over the past several months the Subject Site has been the subject of break-ins, vandalism, and homeless encampments.
Right of Entry and License Agreement with JJTS, Inc. (dba JR Wheels & Tires) for Use of the Property at 1687 W. Lincoln Avenue December 5, 2023
A license would provide Licensee with use of the Subject Site. Licensee is in need of additional building area for storage space, customer parking, vehicle storage, service, and additional point of sale. The building on the Subject Site is approximately 6,000 square feet and would provide Licensee with the area needed. The building is in need of repair and improvement. Staff will commission to make life safety repairs to electrical, plumbing, garage door repairs, glazing, and slurry of the site asphalt. Licensee will take the building “as is” and will make future improvements during their temporary occupancy.
A license does not convey property rights. Rather, a license only allows for usage of the property during an interim period. For consideration of the Agreement, in addition to security and maintenance costs, Licensee will pay a monthly license fee of $5,500. The Agreement will be for a term not to exceed three years. The Agreement can be terminated with a 12-month notification by either party.
IMPACT ON BUDGET:
The City shall make one-time repairs to the building to address life and safety conditions, not to exceed $50,000. Sufficient funds are available in the Economic Development budget from the Successor Agency funds.
Respectfully submitted, Concurred by,
Sergio M. Ramirez Jim Vanderpool
Director of Economic Development City Manager
Attachment:
1. Right of Entry and License Agreement