RESOLUTION NO. (N.C.S.)
A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF THE GROUND LEASE BETWEEN SALINAS BUSINESS PARK, LLC, AND THE CITY LOCATED AT 1341 MERCER WAY IDENTIFIED AS APN: 003-862-001 AT THE SALINAS MUNICIPAL AIRPORT WHEREAS, the City of Salinas (“City”) is the owner of those real estate properties located at 1341 Mercer Way identified as Assessor Parcel Number (APN) 003-862-001 (“Premise”) at the Salinas Municipal Airport; and WHEREAS, the Premise is underutilized due to the costs associated with significant site work required in order to make the property useable for tenants; and WHEREAS, Salinas Business Park, LLC, a California limited liability company, of which Ralph Borelli and Case Swenson are co-managers (the “Developer”) have expressed an interest in entering into a Ground Lease of the Premises; and WHEREAS, the City and Developer entered into an Exclusive Negotiating Rights Agreement (ENRA) on February 20, 2018, and entered into a First Restated and amended ENRA on August 13, 2019, for a term expiring on December 31, 2019 (the “Negotiating Period”); and WHEREAS, City and Developer entered into First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, and Twelfth Amendments to extend the term of the First Restated ENRA to June 30, 2024; and WHEREAS, the proposed Ground Lease would facilitate the redevelopment of the Premise to current standards, and are expected over the life of the Ground Lease to provide a positive fiscal benefit to the City; and WHEREAS, as of September 30, 2023, the California Department of Housing and Community Development has accepted the City's classification of the Premise as “exempt surplus property” under the Surplus Land Act (California Government Code Section 54220 et seq.).
WHEREAS, the Airport Master Plan has designated the Airport Property as being used for revenue-generating purposes; and WHEREAS, the Salinas General Plan indicates that the Airport Property is located within the Public/Semipublic land use designation; and WHEREAS, the Salinas General Plan states that land within the Public/Semipublic land use designation may be developed and used in a manner consistent with the Airport Master Plan; and WHEREAS, Salinas Municipal Code Section 37-10.070 allows the City Council to allow land owned or leased by the City of Salinas to be used in a manner that it finds to be proper and in the public interest; and WHEREAS, the City of Salinas Community Development Department prepared an Initial Study/Mitigated Negative Declaration (IS/MND) pursuant to the California Environmental Quality Act (CEQA) for the proposed Ground Lease; and WHEREAS, on May 12, 2020, the Salinas City Council adopted Resolution 21844, affirming the CEQA findings within the IS/MND and Mitigation Monitoring and Reporting Program (MMRP); and WHEREAS, an Addendum to the IS/MND was prepared based on minor technical changes or additions to the approved project conditions pursuant to Section 21166 of the Public Resources Code (CEQA) and Sections 15162, 15163 and 15164 of the CEQA Guidelines; and WHEREAS, at the February 22, 2024, Airport Commission meeting, the Airport Commission recommended that the City Council adopt a resolution approving and authorizing the execution of the Ground Lease Agreement between Salinas Business Park, LLC. and the City, for property located at 1341 Mercer Way identified as APN 003-862-001 at the Salinas Municipal Airport; and NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby finds and determines that the above recitals and accompanying Staff Report are true and correct and have served as the basis, in part, for the actions of the City Council set forth below; and BE IT FURTHER RESOLVED THAT the City Council hereby finds that the use of the Premise is in accordance with the terms of the Lease, is proper, and in the public interest; and BE IT FURTHER RESOLVED THAT the City Council finds the proposed Ground Lease on the Premise to be consistent with the Airport Master Plan and Salinas General Plan; and BE IT FURTHER RESOLVED THAT pursuant to City Code Section 37-10 the City Council finds the proposed Ground Lease will be used in a manner to be proper and in the public interest.
BE IT FURTHER RESOLVED THAT the City's classification of the Premise is considered as “exempt surplus property” under the Surplus Land Act (California Government Code Section 54220 et seq.) as approved by California Department of Housing and Community Development on September 30, 2023.
BE IT FURTHER RESOLVED THAT the City Council hereby finds that the Ground Lease’s IS/MND, subsequent Addendum, and MMRP has been wholly analyzed and that no further environmental review is necessary and that on the basis of the whole record before it (including any comments received) that there is no substantial evidence that the proposed development on the Premise, as revised to incorporate the MMRP, will have a significant effect on the environment and that this action reflects the independent judgment of the City Council.
BE IT FURTHER RESOLVED THAT a copy of the Ground Lease when executed shall be placed on file in the office of the City Clerk.
BE IT FURTHER RESOLVED THAT the Mayor of Salinas is hereby authorized and directed, for and on behalf of the City of Salinas, to execute the attached Ground Lease between the City and Salinas Business Park, LLC. for property located at 1341 Mercer Way identified as APN 003-862-001 at the Salinas Municipal Airport.
PASSED AND APPROVED this 19th day of March 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
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