Item 133/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Omar Sandoval
Dept:
City Manager Dept: City Attorney
Date: 4/14/2026
Subject: Approval of a Joint-Use Lease Agreement with the Garden Grove Unified School District for an area in association with Water Well 22 at Chapman Hettinga Center located at 11852 Knott Street. (Action Item)
OBJECTIVE
For the City Council to approve a joint -use lease agreement with the Garden Grove Unified School District for an area adjacent to Well 22 and Chapman Sports Complex to install PFAS filter facilities.
BACKGROUND
Well 22 is located at 11990 Knott Street at the corner of Knott Street and Chapman Avenue.
Well 22 is impacted by per - and polyfluoroalkyl substances (PFAS) and require s the installation of filter facilities. The City approached the Garden Grove Unified School District (GGUSD) to lease approximately 16,253 square feet adjacent to Well 22 and the Chapman Sports Complex for the new PFAS filter facilities to allow full operation of the well. The GGUSD has approved the attached joint-use lease agreement, which is being presented to the City Council for approval.
DISCUSSION
The lease provides an initial term of 30 years, with the option to renew for one additional 10- year term, and establishes the annual rent of $9,150, payable in advance on January 1 of each year of the initial term and with pro-rating options.
For the first 10 years, rent will increase each year by the higher of three percent or the annual change in the local Consumer Price Index for Los Angeles -Long Beach-Anaheim, with each increase added to the previous year’s rent. Before the 11th and 20th years, the district will obtain a professional appraisal to determine the fair market rent. Rent will then be set moving forward to whichever is higher: the appraised value or the previous year’s rent plus three percent. The City will be res ponsible for paying any taxes or assessments related to its use of the property.
Item 133/2026
FINANCIAL IMPACT
Sufficient funds for the annual rent are available in the Water Enterprise funds budget. There is no impact to the general fund.
RECOMMENDATION
It is recommended that the City Council:
Approve the Joint-Use Lease Agreement with the Garden Grove Unified School District for a portion of real property located at 11852 Knott Street, Garden Grove, CA, Assessor’s Parcel Number (APN) 131-331-16; and Authorize the City Manager, or designee, to execute the lease agreement and approve minor modifications as needed, including any extensions to the term thereof.
ATTACHMENT(S)
1. Joint-Use Lease Agreement