City Council Staff Report Page 1 of 3 December 9, 2025
Agenda Item No. 3.8
DATE: December 9, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Enter Into a Lease Agreement with Inverness Management, LLC, Effective December 10, 2025, for a Police Substation, Located at 31079 Courthouse Drive, for $3,266.00 per Month, with a 4% Annual Increase
EXECUTIVE SUMMARY
Staff is seeking City Council approval for the City Manager to enter into a lease agreement with Inverness Management, LLC, for a police substation, located at 31079 Courthouse Drive, at the Union Landing shopping center, to deliver police services on behalf of the Union Landing Property and Business Improvement District (ULPBID). The lease amount is $3,266.00 per month with an annual increase of 4% each January 1st starting on January 1, 2027. The lease commences on December 10, 2025 (the “Commencement Date”) and expires on December 9, 2030.
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following City Council priority:
Goal C: Economic, Community Development, and Public Safety Strategy 4: Work with the Union Landing Property Owner’s Association to ensure Union Landing remains a destination for shoppers through property improvements, on-going property maintenance, and a continued focus on public safety.
BACKGROUND
In 2017, the ULPBID formed and incorporated the Union Landing Property Owners Association (ULPOA) as a not-for-profit corporation with an elected Board of Directors serving as its governing body. In November 2018, the City Council authorized the City Manager to enter into a Memorandum of Understanding and Cooperative Agreement between the City and the ULPOA.
Agenda Item No. 3.8
City Council Staff Report Page 2 of 3 December 9, 2025
The mission of ULPBID and ULPOA is to create and promote a high-quality entertainment and shopping environment at the Union Landing shopping center, to protect the safety of its visitors, and to maintain the center as a regional retail destination. Through the levy of assessments, the ULPBID provides funding to support the operation of a dedicated police substation within the shopping center. Fear of crime has a significant influence on where people choose to shop, socialize, and spend time, as these decisions are often guided by their perceptions of safety. Research shows that police substations are highly effective in reducing the fear of crime within their immediate surroundings, helping create a safer and more welcoming environment for visitors and businesses alike.
Through ULPBID, the Union City Police Department has been occupying a police substation rented from Dyer Triangle LLC. This previous agreement with Dyer Triangle LLC, adopted through Resolution No. 5616-20, expired on June 30, 2025, and use of the substation has since continued on a month-to-month basis.
Inverness Management, LLC has offered to provide office space for the Union Landing police substation, and the proposed lease agreements attached to this report formalize this arrangement. The proposed new substation, located at 31079 Courthouse Drive, is a space currently leased by Inverness Management (a California limited liability company), with Pappas Union City No. 2, L.P. (a California limited partnership) serving as the landlord. The City would occupy the site through a sublease agreement, with both the Master Lease and the proposed Sublease included as attachments.
On July 8, 2025, the City Council adopted Resolution No. 2025-096 to renew the Union Landing Property and Business Improvement District (“ULPBID”) and to levy and collect assessment for Fiscal Year 2025-2026 in accordance with the provisions of the Property and Business Improvement District Law of 1994, California Streets and Highways Code, Section 36600, et seq.
DISCUSSION
The ULPBID supports three full-time officers and a police substation in Union Landing.
ULPBID funds are collected through tax assessments and used to provide services to the shopping center. Union Landing officers benefit from having an office at the shopping center and the public benefits as well by increased police visibility. With the formation of the Union Landing Property Owners Association, it was previously determined that the arrangement for the police substation be formalized with a lease agreement. The current lease with Dyer Triangle LLC, adopted by Resolution No. 5616-20, expired on June 30, 2025, and has been continuing on a month-to-month basis.
Inverness Management, LLC has offered to provide office space for the Union Landing police substation, and the proposed lease agreements attached to this report formalize this arrangement. The new substation, located at Located at 31079 Courthouse Drive, will enhance the Police Department’s ability to serve Union Landing, as it is larger, more visible, and situated along a major thoroughfare at one of the shopping center’s primary entrances.
Under the terms of the attached Sublease Agreement, the City will occupy the Union Landing police substation at a cost of $3,266.00 per month, subject to an annual 4% increase beginning on January 1, 2027, which will remain in effect for the term which Agenda Item No. 3.8
City Council Staff Report Page 3 of 3 December 9, 2025
begins on December 10, 2025 and ends on December 9, 2030.
FISCAL IMPACT
There is no fiscal impact to the General Fund by entering into the lease agreement with Inverness Management, LLC, for the Police Substation for a five-year term ending December 9, 2030. The City receives all funds collected pursuant to the ULPBID assessment and ensures that such funds are accounted for separately from the City’s General Fund. Funds are collected each fiscal year specifically for the Police Substation lease payments through the annual assessments.
The ULPBID Management District Plan, attached to this staff report, includes the budgeted $58,797 for the Police Substation lease for the initial 18-month period (July 1, 2025–December 31, 2026), as well as $40,765.92 for the subsequent year. The Plan also allows for annual assessment increases of up to four percent (4%), providing the flexibility needed to accommodate future rent increases over the remainder of the PBID term.
There will be outfitting costs associated with the move, including technology needs and workstation setup. Staff will use asset forfeiture funds, State Law Enforcement Supplemental Funding (SLESF), and/or money already budgeted for technology and/or replacing existing equipment. All purchases will follow the City's standard operating procedures.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to enter into a lease agreement with Inverness Management, LLC, effective December 10, 2025, for a police substation, located at 31079 Courthouse Drive, for $3,266.00 per month with a 4% increase each January 1st starting on January 1, 2027, to deliver police services on behalf of the Union Landing Property and Business Improvement District.
Prepared by: Andrew Holt, Captain
Submitted by: Jared Rinetti, Chief of Police
Attachments
1. Draft Resolution
2. Exhibit A – Master Lease Agreement
3. Exhibit B – Sublease
4. Management District Plan for Union Landing Property and Business Improvement District