City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 16, 2024 FROM: GENERAL SERVICES DEPARTMENT WARD: 3 SUBJECT: APPROVE RIVERSIDE MUNICIPAL AIRPORT LEASE AGREEMENT WITH HARVEST CHRISTIAN FELLOWSHIP FOR A TEN-YEAR TERM WITH THE OPTION TO EXTEND FOR AN ADDITIONAL FIVE-YEAR TERM, WITH THE FIRST-YEAR LEASE AMOUNT OF $47,110.44 ISSUE:
Approve Riverside Municipal Airport Lease Agreement with Harvest Christian Fellowship for a ten-year term with the option to extend for an additional five-year term, with the first-year lease amount of $47,110.44.
RECOMMENDATIONS:
That the City Council:
Approve Riverside Municipal Airport Lease Agreement with Harvest Christian Fellowship for a ten-year term with the option to extend for an additional five-year term, with the first-year lease amount of $47,110.44; and Authorize the City Manager, or designee, to execute the Riverside Municipal Airport Lease Agreement with Harvest Christian Fellowship, including making minor and non-substantive changes.
COMMISSION RECOMMENDATION:
On January 11, 2024, the Airport Commission will hear this item and provide a recommendation regarding City Council approval for the Riverside Municipal Airport Lease Agreement with Harvest Christian Fellowship.
BACKGROUND:
On June 26, 1996, the City entered into an Agreement with Harvest Christian Fellowship for Vehicular Access Permit and License to use Gemende Drive at Riverside Municipal Airport.
On February 16, 1999, the City Council approved an Agreement with Harvest Christian Fellowship to lease approximately 1.5 acres of Municipal Airport land to build a parking lot at the East end of Gemende Drive.
On April 7, 1999, Harvest Christian Fellowship entered into a long-term lease agreement with the City of Riverside's Airport Department to lease a parcel of land for use as a parking lot. The site, a 75,250 square foot parcel, is to be used as a parking lot and will prohibit assigning or subleasing the parcel.
DISCUSSION:
Harvest Christian Fellowship has two agreements with Riverside Municipal Airport; one for use of a parking lot and a second for Gemende Drive access. The new lease combines the use of premises as a parking lot that has access to Gemende Drive consisting of 117,776 square feet. The new lease is a ten-year term commencing on the date of the agreement’s execution. Lessee has the option to extend the lease for an additional five-year term.
Lessee shall pay City a rental amount of Three Thousand Nine Hundred Twenty-Five Dollars and Eighty-Seven Cents ($3,925.87), per month as adjusted annually in August, to reflect the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario Standard Metropolitan Statistical Area (“Index”) published by the Bureau of Labor Statistics of the United States Department of Labor.
STRATEGIC PLAN ALIGNMENT:
This Lease Agreement supports Strategic Priority No. 3 Economic Opportunity and Goal No. 3.1 - Facilitate partnerships and programs to develop, attract and retain innovative business sectors.
This item aligns with EACH of the five Cross-Cutting Threads as follows:
1. Community Trust – City Council approval and Airport Commission discussion of this Lease Agreement demonstrates the Airport’s commitment to the community and Airport users by ensuring transparency.
2. Equity – Retaining an established business at the Riverside Municipal Airport benefits the entire community.
3. Fiscal Responsibility – This Lease Agreement will continue to generate fair market value rent revenue.
4. Innovation – This Lease Agreement demonstrates the City's business - friendly approach to retaining a valued tenant.
5. Sustainability and Resiliency – This Lease Agreement will ensure that the Airport is in full occupancy of leasing space and furthering the Airport’s sustainability as a self-supporting enterprise fund.
FISCAL IMPACT:
The total fiscal impact is estimated to be $47,110.44 in lease revenue during the first year of the term. Revenue will be deposited into the Airport Fund, Airport Building & Ground Rental revenue account 0000530-346120. Future years revenue will be budgeted during budget development to include any increases related to CPI.
Prepared by: Daniel Prather, Airport Manager
Approved by: Carl Carey, General Services Director
Certified as to
Availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/ Treasurer Approved as to form: Phaedra A. Norton, City Attorney Attachment: Lease Agreement
Harvest Christian Fellowship Lease Page 2