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Placentia Cit Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE NOVEMBER 7, 2023
SUBJECT: LEASE AGREEMENT AND COOPERATION AGREEMENT BETWEEN THE CITY
OF PLACENTIA AND THE PLACENTIA CHAMBER OF COMMERCE FOR REAL PROPERTY LOCATED AT 120 S. BRADFORD AVENUE (APN 339-052-29) FISCAL
IMPACT: EXPENSES: $25,000 COOPERATIVE AGREEMENT
FUNDING: $25,000 FY 2023-24 OPERATING BUDGET (101534-6301) REVENUE: $ 3,252 ANNUAL LEASE PAYMENT (101534-4711)
SUMMARY:
The City owns real property at 120 S. Bradford Avenue (Assessor Parcel Number 339-052-29) ("The Property") located in Old Town Placentia. The Property is more commonly referred to as Old City Hall. Over the past couple of years, the Property has undergone major renovations, including the installation of a new roof and HVAC system as well as handicap accessible restrooms and doors, flooring replacement, interior paint and construction of a courtyard. It is the City's and the Placentia Chamber of Commerce's (the "Chamber") desire to relocate the Chamber to Old City Hall to create a more professional presence within the business community and promote the growth of Old Town. This action approves a Lease Agreement and Cooperation Agreement with the Chamber for a term ending on November 7, 2028. The Lease Agreement can terminate within sixty (60) days written notice by either party.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the Lease Agreement between the City of Placentia and the Placentia Chamber of Commerce for real property located at 120 S. Bradford Avenue for a term ending on November 7, 2028; and
2. Approve the Cooperation Agreement between the City of Placentia and the Placentia Chamber of Commerce for a term ending on November 7, 2028; and
3. Authorize the City Administrator and/or his designee to make non -substantive changes as necessary and execute the Agreements on behalf of the City, in a form approved by the City Attorney.
1.1. Nov. 07, 2023
City Council Agenda
November 7, 2023
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Promote Community and Economic Development, as Objective Number 3.3 to continue to recruit and attract retail, hotel and other commercial business that complement adjacent City assets and attractions. This agenda item will specifically result in the enhancement of the Placentia Chamber of Commerce's professional presence in the business community with the use of a City -owned facility in Old Town Placentia.
DISCUSSION:
The City maintains a positive working relationship with the Placentia Chamber of Commerce (the "Chamber") and has held several joint special events that promote economic development and business relations within the community. The Chamber has been steadfast in creating an environment that is dedicated to serving the City's businesses and their prosperity through advocacy, business education, and connectivity. This is particularly true during the COVID-19 pandemic. The Chamber has assisted the City with public dissemination of critical resources such as financial assistance and available funding by the City, State, and Federal agencies to ensure our business community could remain functional and prosperous during the pandemic. They have hosted free virtual workshops to share this information to our business community and have provided application assistance to those that have requested it.
Moving the Chamber to Old City Hall will further expand these efforts to create a stronger Chamber and will provide an amplified environment to accommodate professional business gatherings at Old City Hall. Over the past couple of years, the Property has undergone major renovations, including the installation of a new roof and HVAC system as well as handicap accessible restrooms and doors, flooring replacement, and interior paint. It is the City's and the Chamber's desire to relocate the Chamber to Old City Hall to create a more professional presence within the business community.
As part of the Lease Agreement, the Chamber has agreed to provide monthly lease payments to the City, which begin at $271.00 per month for the first year for leasing a total of 542 square feet of office space at Old City Hall. The lease payments will increase three percent (3%) each subsequent year for a total of five (5) years of the Lease Agreement. Both parties can agree to extend the term of the agreement for an additional five (5) years. Conversely, the Lease Agreement can terminate within sixty (60) days written notice by either party.
It is the desire of the City and the Chamber to have established office hours at Old City Hall for walk-ins, appointments, assisting visitors and day-to-day operations of the Chamber. As a result, a Cooperation Agreement has been prepared that will provide annual funding in the amount of $25,000 from the City to the Chamber. This funding will assist with the operations of the Chamber and the Chamber would provide annual reports to the City Council on the Chamber's membership, events, programs and services to the business community. A detailed scope of services to be provided by the Chamber is attached to the Cooperation Agreement.
City Council Agenda
November 7, 2023
Page3of3
FISCAL IMPACT:
The City will receive an annual lease payment revenue in the amount of $3,252 during their first year of operation and this lease amount will gradually increase (3%) annually. An annual cooperation payment of $25,000 will be incurred by the City of Placentia for the services outlined within the cooperation agreement. Sufficient funds exist within the FY 2023-24 operating budget.
Prepared by: Reviewed
Jean` e $ rtega Luis Estevez
Deputy Director of Administrative Services Deputy City Administrator Reviewed and approved:
Damien R. Arrula
City Administrator
Attachments:
1. Lease Agreement with the Placentia Chamber of Commerce
2. Cooperation Agreement with the Placentia Chamber of Commerce