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November 4, 2025
ITEM TITLE
Lease Agreement: Approve a Lease Agreement with the California Department of Transportation for the Gayle L. McCandliss Park
Report Number: 25-0255
Location: 415 East J Street
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Exis ting Facilities) and Section 15061(b)(3).
Recommended Action
Adopt a resolution approving a Lease Agreement with the California Department of Transportation for the Gayle L. McCandliss Park located at 415 East J Street.
SUMMARY
For over 50 years, the City of Chula Vista has leased land from the California Department of Transportation at 415 East J Street and operated it as a community park known as the Gayle L. McCandliss Park.
This item approves a new lease agreement for the continued use of the park land.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
On June 20, 1972, the Chula Vista City Council approved a lease agreement (Porter Bill Lease) with the State of California Business and Transportation Agency, Department of Public Works, Division of Highways for the 50-year lease of a 1.9 -acre (Right of Way Parcel DD 11004 -01-02) State Highway excess property adjacent to Halecrest Elementary School. Major conditions of the lease were:
50-year lease period.
Rental rate of $100 per year.
City is to develop a park within a limited time.
A Porter Bill Lease allowed Caltrans to lease land to a local agency that is outside of the state highway boundary when such use w ould protect the highway and its environs, condition ed on the local agency developing and maintaining the land as a park. Caltrans benefitted from the area being maintained and the City gained additional parkland.
Halecrest Park opened to the public in 1974 and in May 2000, the Chula Vista City Council approved renaming of the park to Gayle L. McCandliss Park in honor of former Mayor Gayle L. McCandliss.
Gayle L. McCandliss
Former Mayor Gayle McCandliss was appointed to the City Council in 1979 and served as a councilmember for 10 years before being elected mayor in November 1990. She passed away after a nearly yearlong battle with cancer.
Following her passing, a memorial fund honoring Mayor McCandliss was established with funds raised during her campaign and subsequently private donations. Consistent with her wishes, the fund was formed in order to establish a perpetual fund to recognize individuals or groups who make a substantial contribution toward the arts in the City. The Cultural Arts Commission was tasked with development of an awards and scholarship program utilizing the interest accrued from the fund. This program continues today.
In recognition of her service and dedication to the City of Chula Vista, in 1991, the Chula Vista City Council approved the Gayle McCandliss Memorial Grove and Nature Trail at Halecrest Park. Then in 200 0, the City Council renamed the park.
Park Features
Today, the park features barbecue grills, open green space, play equipment, picnic areas and incredible views of the city. The park is directly west of Halecrest Elementary School making it an even more popular stop for students and families.
The original lease for Gayle L. McCandliss Park expired on October 31, 2022. Since then, the issue has been researched extensively by various local and Sacramento Senior Caltrans teams.
There is no provision for an extension, holdover, or renewal of Porter Bill Lease within the Department of Transportation. There is also no provision within the Department of Transportation to lease at the same rate, or lease at a lesser rate than fair market value, to a municipality.
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The options available to the City at end of lease a re to rent or purchase at fair market value, or to vacate property and end tenancy.
Caltrans conducted a fair market value appraisal on the property and determined a monthly rent rate of $1,500. After taking into account the City’s maintenance costs on the property, Caltrans has proposed a lease rate of $5 per month, for a period of five years. After the five-year term, the lease could continue on a month- to-month basis.
Approval of this lease would preserve this much-needed City asset as a community park for residents to enjoy.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest un der California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Lease payments to the California Department of Transportation for the current fiscal year total $50. This cost can be absorbed by the adopted fiscal year 2025-26 budget.
ONGOING FISCAL IMPACT
The ongoing fiscal impact of this action is monthly lease payments in the amount of $5 per month ($60 annually), which will be included as part of the normal budget process.
ATTACHMENTS
1. Lease Agreement (Tenancy Number 11-011004-0001-01)
Staff Contact: Adrianna Relph, Special Projects & Legislative Manager Tiffany Allen, City Manager