Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
FROM: CITY ADMINISTRATOR
DATE: JULY 19, 2022
SUBJECT: LEASE OF CITY -OWNED PROPERTY LOCATED AT 336 W. SANTA FE
AVENUE TO HIS ORANGE COUNTY
FISCAL
IMPACT: REVENUE: $3,600 FIRST YEAR; CPI INCREASE AT YEAR 2 AND EACH
SUBSEQUENT YEAR THEREAFTER
SUMMARY:
On April 20, 2010 the former Redevelopment Agency (RDA) entered into a Lease Agreement with Homeless Intervention Shelter (HIS House) for the residence located at 336 W. Santa Fe Avenue (the "Property") for the purpose of housing homeless families and individuals. HIS House serves as a nonprofit organization that provides wraparound services to enable self-sufficiency and employment among homeless families and individuals. Subsequently on October 20, 2015 the Placentia City Council approved a new lease agreement with HIS House. This action approves a new lease agreement with Homeless Intervention Services of Orange County (formerly HIS House) to continue to lease the Property as outlined in the terms of the agreement.
RECOMMENDATION:
It is recommended that the City Council take the following action:
1. Authorize the City Administrator to execute a lease agreement, as approved by the City Attorney, with Homeless Intervention Services of Orange County for 336 W. Santa Fe Avenue.
DISCUSSION:
The former Redevelopment Agency (RDA) of the City of Placentia purchased 336 W. Santa Fe Avenue (the "Property") in 2009 for One Hundred and Sixty Thousand Dollars ($160,000) from a bank after a foreclosure proceeding. The Property was purchased for the purposes of providing affordable housing opportunities in the Old Town Placentia area.
With the dissolution of the RDA, the Property was transferred to the City of Placentia as the Successor Agency to the Housing Authority. This residence has been utilized by HIS House since 2010 as transitional housing for families that are on the final step to self-sufficiency after experiencing a period of homelessness. Subsequently on October 20, 2015 the Placentia City Council approved a new lease agreement with HIS House.
1.n.
July 19, 2022
City Council Agenda
July 19, 2022
City Staff met with Carrie Buck, Executive Director of Homeless Intervention Services of Orange County (HIS OC) regarding the continued lease of the Property. Ms. Buck expressed interest in continuing to utilize the Property as transitional housing for the clients they serve.
The proposed lease agreement would reflect the agency's new name, Homeless Intervention Services of Orange County (HIS OC) and would be for a period of thirty-six (36) months with an option to extend the lease two (2) additional one (1) year terms. The revenue for the first year would continue at a rate of $300 per month, however, at year 2 a CPI adjustment would be applied and every subsequent year thereafter. The lease agreement would also have a ninety -day (90) termination provision via written notice by the City to HIS OC.
FISCAL IMPACT:
The revenue generated from the lease will be deposited into the Housing Agency Fund for future affordable housing purposes.
Prepared bReviewed and
Jeannette Ortega
Assistant to the City Administrator/
Economic Development Manager
Attachment:
Lease Agreement
Damien R. Arrula
City Administrator