REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:August 12, 2025
Subject:License Agreement for Seasonal Sales Lot on Dexter Road Recommendation
Approve and authorize the City Manager to execute a License Agreement with ABC Tree Farms, LLC for the temporary seasonal use of the City-owned vacant and unimproved lot at 18614 Dexter Road for seasonal sales in such final form as approved by the City Attorney.
Background
The City-owned, vacant lot located at 18614 Dexter Avenue has been used for many years for seasonal sales such as pumpkins and Christmas trees. Traditionally, companies applied and paid for a Temporary Use Permit (TUP) to use the lot for up to 120 days. In 2015, the City initiated a more formal process for the use of this vacant lot. A Request for Proposals was issued for the license and temporary use of the property for seasonal sales purposes. The associated parcel numbers for the lot are 377040024, 257040024, and 237040024. A site map is provided in Exhibit B. These City parcels can only be used for temporary use since they may be needed for future Central Avenue interchange improvements.
On July 29, 2020, the City entered into a license agreement with ABC Tree Farms, LLC for three (3) years with an option for two additional one (1) year extensions. This agreement expired on June 30, 2023. The license agreement is limited to the use of the property for up to 120 days per year, which can be broken into different events, provided they meet all provisions of Chapter
17.200 Temporary Uses of the Lake Elsinore Municipal Code.
License Agreement for Seasonal Sales
Discussion
In June 2025, the staff issued a Request for Proposals for those interested and qualified to use this City lot for seasonal sales. One proposal was received from ABC Tree Farms, LLC. ABC Tree Farms, LLC has been conducting seasonal sales on this Dexter lot since 2012 and has been operating retail Christmas Tree Sales Sites, Halloween Pumpkin Sales Sites, Summer Fun Zones, Fruit Stands, and Farmers Markets for over thirty years. The proposed uses by ABC Tree Farms include the following for 2025, with similar dates and uses in subsequent years:
Halloween Pumpkin Patch – September 8 through November 10, 2025. Hours of operation will be seven days a week. Sunday through Thursday from 10:00 a.m. to 9:00 p.m. and Friday and Saturdays from 10:00 a.m. to 10:00 p.m. Items that will be sold will be pumpkins, gourds, squash, corn, Halloween items, and décor. Anticipated attendance over 30 days is approximately 2500 people.
Christmas Tree Lot – November 10 through December 31, 2025. Hours of operation will be seven days a week from Thanksgiving to Christmas Eve, Sunday through Thursday from 10:00 a.m. to 9:00 p.m., with Friday and Saturdays from 9:00 a.m. to 9:30 p.m. Items that will be sold will be Christmas trees, wreaths, and garlands, and assorted Christmas Holiday Items. Anticipated attendance over the 30 days is approximately 1500 families.
ABC Tree Farms is required to obtain a Business License before execution of the license agreement and a Temporary Use Permit (TUP) before the establishment of each use, each year.
They will be responsible under the license agreement for the use of electricity and water, and maintenance of the lot. The Vendor is also responsible for the connectivity of both utilities, repairs, and any necessary permits. A license fee and cleaning deposit of $2,000 will be paid each year under the following schedule:
License Year 1: License Fee: $17,620.96
Security Deposit: $ 2,000.00
License Year 2: License Fee: $18,149.58
Security Deposit: $ 2,000.00
License Year 3: License Fee: $18,694.06
Security Deposit: $ 2,000.00
License Year 4: License Fee: $19,254.88
(If exercised) Security Deposit: $ 2,000.00
License Year 5: License Fee: $19,832.52
(If exercised) Security Deposit: $ 2,000.00
License Agreement for Seasonal Sales
The site must be kept clean and free of debris and left in the same condition as found upon commencement of use. In addition, the ABC Tree Farms will be required to provide up to $1,000 in products free of charge to the City and up to $500 in products to be donated to a community group of the City's choice each year of the license agreement term. The term of the agreement is for three (3) years with an option for two additional one (1) year extensions at the sole discretion of the City. The license agreement is in Attachment 1.
Fiscal Impact
The proposed annual license fee to the City is $17,620.96 for the first year and increases 3% annually throughout the term, which will provide $54,464.60 to the City for the initial three-year term and up to $93,552.00 if the term is extended for the two one-year renewal terms.
Attachments
Attachment 1 - License Agreement
Exhibit A - Use Proposal
Exhibit B - Site Map
City Manager's Office