City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0318
REQUEST FOR CITY COUNCIL ACTION
DATE: 04/20/2022
TO: Honorable Mayor and City Council Members
FROM: Police Department
SUBJECT:
Third Amendment to the McKinley Shopping Center Lease Agreement for the Police community office.
EXECUTIVE SUMMARY:
Council Consideration on the approval of a Third Amendment to the Lease Agreement between GKT Corona Hills LW, L.L.C., GKT Corona Hills TMI, L.L.C., and the City of Corona for the Police community office located at 577 North McKinley, Suite 103 in the Corona Hills Marketplace. The Police Department has been leasing a community office in the Corona Hills Marketplace since 1997.
The recommended Third Amendment to the Lease Agreement for the Corona Hills Marketplace location extends the lease for another two-year term, commencing June 1, 2022, and expiring May 31, 2024.
RECOMMENDED ACTION:
That the City Council approve and authorize the Chief of Police to execute the attached Third Amendment to the Lease Agreement between GKT Corona Hills LW, L.L.C., a Missouri limited liability company, and GKT Corona Hills TMI, L.L.C., a Missouri limited liability company (collectively, “Landlord”), and the City of Corona for the Police community office located at 577 North McKinley, Suite 103 in the Corona Hills Marketplace.
BACKGROUND & HISTORY:
The Police Department has been leasing a community office in the Corona Hills Marketplace at a $1 per year base rental rate since 1997. The original Police Department community office was located at 340 North McKinley Street, Suite 101. In December 2012, the Police community office was relocated to 440 North McKinley Street, Suite 101. In May 2016, the community office was relocated across the street with a new address of 577 North McKinley Street, Suite 103.
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File #: 22-0318
ANALYSIS:
The lease agreement for the current location was approved in 2016 and allowed for a two-year term which ended May 12, 2018.
A First Amendment to the Lease was entered on June 20, 2018, extending the term of the agreement for two years, from May 13, 2018, to May 12, 2020. In addition, the Council action authorized the Chief of Police to update any lease agreement paperwork.
On June 17, 2019, Corona Hills Marketplace notified the Police Department that the landlord was in the process of selling the property and executed an Estoppel Certification, putting any prospective buyers of the rental property on notice regarding the rights and privileges that the Police Department, as a tenant, enjoys. On August 8, 2019, a Notice of Sale of the Corona Hills Marketplace was received by the Police Department naming GKT Corona Hills LW, L.L.C., a Missouri limited liability company, and GKT Corona Hills TMI, L.L.C., a Missouri limited liability company, as tenants in common (collectively, “New Owner”).
The new property owners continued to adhere to the current lease agreement terms, a $1 per year base rental rate, and provided a Second Amendment to the Shopping Center Lease. The current lease was a two-year term that began on June 1, 2020, and will expire on May 31, 2022.
The recommended Third Amendment to the Lease Agreement for the Corona Hills Marketplace location extends the lease for another two-year term, commencing June 1, 2022, and expiring May 31, 2024. Staff recommends approving the lease agreement to maintain the police presence within the shopping center area.
As in the past, the property manager may ask to have the Police Department change office locations.
If that happens, it is recommended that the Chief of Police have the authorization to update any lease agreement paperwork contingent upon the new location being acceptable with no fiscal impact or other significant changes to the agreement. Lease terms allow either party to terminate the lease with a 30-day notice.
The City Attorney has reviewed and approved, as to form, the proposed lease agreement.
FINANCIAL IMPACT:
The $1 lease fee is included in the Police Department’s operational budget for Fiscal Year 2022 and is included in the Proposed Fiscal Year 2023 Budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This is merely an agreement and there is no possibility this will have a significant effect on the environment. Therefore, no environmental analysis is required.
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File #: 22-0318
PREPARED BY: MICHELLE ADAMS, MANAGEMENT ANALYST II
REVIEWED BY: ROBERT NEWMAN, CHIEF OF POLICE
Attachments:
1. Third Amendment to the McKinley Shopping Center Lease Agreement City of Corona Page 3 of 3 Printed on 4/13/2022
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