Item# 07
Date: May 7, 2024
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: E Street MX Agreement
Recommendation:
Pass a Motion to approve a lease agreement by and between the city of Marysville and E Street MX Corporation for an Off-Highway Motocross Riding/Racing Facility within the decommissioned wastewater evaporation ponds APN# 020-010-000.
Rationale for Recommendation:
The Council previously passed a motion to approve a temporary license agreement between the City of Marysville and E Street MX. This temporary license agreement allowed E Street MX corporation to begin the development of a riding/racing facility within the decommissioned wastewater evaporation ponds owned by the City of Marysville. The subject property is located South of the City of Marysville and South of the Yuba River in Yuba County. The property is not located within the city limits. The property is used as a staging area/parking and will be used for an additional racetrack in the future. E Street MX will be required to obtain the necessary permits from Yuba County to operate.
The term of the Use Agreement is through December 31, 2034.
Discussion & Analysis:
E Street MX corporation will utilize the property for an off-highway motocross racing facility. E Street MX has a proven and successful business model.
The Lessee shall receive credit against the lease payments for the initial cleanup of the property according to the schedule outlined on page 2 of the lease agreement. This agreement shall commence effective when signed by both parties and by the guarantors and shall terminate on December 31st, 2034.
Lessee shall be solely responsible for maintaining the property and all structures on the property.
Additional terms, responsibilities, and consideration for this agreement are outlined in the attached Lease agreement.
Item# 07
Alignment with City Council Goals:
Goal #1: Increase Fiscal Sustainability
Goal #2: Expand Economic Development Opportunities
Goal #5: Support Parks & Recreation
Fiscal Analysis:
Integral to this agreement is Lessee’s responsibility for the initial cleanup of the property. The lease payments are set at a considered rate of $10,000 annually, aggregating to a total of $100,000 over the proposed 10-year period. The credit against lease payments, outlined in the attached Lease Agreement, amounts to a total of $57,000, leaving the net financial gain for the City of Marysville at $42,000 over the ten year period.
Attachment:
1) Lease Agreement