HomeMy WebLinkAbout2020-12-14 City Council Agendas (2)
City of Palo Alto (ID # 11748)
City Council Staff Report
Report Type: Informational Report Meeting Date: 12/14/2020
City of Palo Alto Page 1
Summary Title: Property Leases Entered into by the City Manager in Fiscal
Year 2020
Title: Property Leases Entered Into by the City Manager Under Palo Alto
Municipal Code Section 2.30.310(h), and Reported per Section Code 2.30.710
Fiscal Year 2020
From: City Manager
Lead Department: Administrative Services
This is an informational report and no Council action is required.
DISCUSSION
Palo Alto Municipal Code (PAMC) Section 2.30.710 requires an annual report to the Council of
all leases and rentals of city property with third parties approved by the City Manager. The
attached reports transmit the information (Attachment A) for fiscal year (FY) 2020 as required
by the PAMC including rent deferral information (Attachment B).
PAMC Section 2.30.210 (h) authorizes the City Manager to award and sign contracts to rent,
lease, or license city property to other parties regardless of the price for a term not exceeding
three years. The City Manager may enter into and sign contracts to rent, lease, or license
property at the Cubberley site for terms up to five years.
Rental revenues for the leases authorized by the City Manager for FY 2020 totaled $805,519.
Due to the COVID-19 pandemic and the resulting shelter in place order issued by the County of
Santa Clara, the City offered certain tenants the ability to defer up to three months of rent.
Total Rent deferred for the leases authorized by the City Manager for FY 2020 totaled $242,394.
Rental agreements require deferred rent to be repaid at a later date. Staff is preparing a report
for City Council in early 2021 with options to provide additional rental relief.
Attachments:
• Attachment A: FY 2020 List of Lease Agreements
• Attachment B: FY 2020 List of Rent Deferrals
ATTACHMENT A
Attachment A - 1
CITY OF PALO ALTO
ADMINISTRATIVE SERVICES DEPARTMENT/REAL ESTATE DIVISION
FY 2020 Annual Report – Lease Agreements Entered Into
By City Manager Under PAMC Section 2.30.210 (h)
Number Property
Address
Property/Space
Type
Square
Footage Tenant Term Monthly Total FY
Rent*
Agreement
Date
1 1237 San
Antonio Rd
Old Los Altos
Treatment Plant
(LATP) Land
31,000 Pacific Gas and Electric Company 1 Month $20,150 $20,150 7/9/2019
2
1925
Embarcadero
Rd
Airport Land 13,852 West Valley Aircraft Services Inc.
DBA Aero Works 36 Months $11,554 $138,654 7/11/2019
3
4000
Middlefield
Rd
Cubberley
Community Center 8,260 Avenidas 5 months $8,426 $92,686 8/5/2019
4
4000
Middlefield
Rd
Cubberley Artist
Studio 390 Robin Mullery 12 months $371 $4,076 8/14/2019
5 1237 San
Antonio Rd
Old Los Altos
Treatment Plant
(LATP) Land
5,000 Ranger Pipelines, Inc. 15 months $3,500 $38,500 8/16/2019
6
4000
Middlefield
Rd
Cubberley
Community Center 3,220** Avenidas 10 months $4,218 $42,182 8/22/2019
7
4000
Middlefield
Rd
Cubberley
Community Center 8,100 Imagination Lab School 11 months $16,200 $162,000 8/22/2019
8
4000
Middlefield
Rd
Cubberley Artist
Studio 390 Darryl Dieckman 12 months $413 $4,134 8/22/2019
9
4000
Middlefield
Rd
Cubberley Artist
Studio 520
Rachelle Doorley
12 months $478 $4,780 8/29/2019
ATTACHMENT A
Attachment A - 2
Number Property
Address
Property/Space
Type
Square
Footage Tenant Term Monthly Total FY
Rent*
Agreement
Date
10
1925
Embarcadero
Rd
Airport Land 9,990 West Valley Flying Club 36 months $20,704 $207,036 8/30/2019
11
1925
Embarcadero
Rd
Airport Land 5,500 VSS International, Inc. month to
month $3,850 $30,800 10/8/2019
12
1925
Embarcadero
Rd
Airport Land 1,040 Sundance Flying Club month to
month $2,142 $19,282 11/21/2019
13 1237 San
Antonio Rd
Old Los Altos
Treatment Plant
(LATP) Land
3,500** Ranger Pipelines, Inc. 2 months $2,625 $5,250 2/10/2020
14
1925
Embarcadero
Rd
Airport Land 912 Austro Aircraft LLC 36 months $2,177 $8,708 3/2/2020
15
1925
Embarcadero
Rd
Airport Land 3227 West Valley Flying Club 36 months $7,703 $23,110 4/16/2020
16
250
Hamilton
Ave
City Hall 9 Oh My Green, Inc. 12 months $100 $300 4/17/2020
17 1237 San
Antonio Rd
Old Los Altos
Treatment Plant
(LATP) Land
3,500 Ranger Pipelines, Inc. 1 month $2,625 $2,625 4/21/2020
18
4000
Middlefield
Rd
Cubberley Artist
Studio 390 Ernest Regua 12 months $402 $804 4/22/2020
19
4000
Middlefield
Rd
Cubberley Artist
Studio 480** Catherine Di Napoli 12 months $442 $442 5/28/2020
ATTACHMENT A
Attachment A - 3
SUMMARY – PAMC SECTION 2.30.210 (h) AGREEMENTS
Number of Transactions FY 2020 Total Annual Revenue Resulting from New Lease Agreements
Total 19 $805,519
*Please note that tenancy terms range from one to thirty-six months for the tenants.
**Tenant changed suites, square footage and rent payment changed.
ATTACHMENT B
Attachment B - 1
CITY OF PALO ALTO
ADMINISTRATIVE SERVICES DEPARTMENT/REAL ESTATE DIVISION
FY 2020 Annual Report – Lease Deferred Agreements Entered Into
By City Manager Under PAMC Section 2.30.210 (h) (organized by Agreement Date)
Number Property
Address
Property/Space
Type
Square
Footage
Tenant Months
Deferred
Total
Deferred
Rent
Agreement
Date
1 1925
Embarcadero
Rd
Airport Land 9,990 West Valley
Flying Club
April,
May $12,815 4/16/2020
2 4000
Middlefield
Rd
Cubberley
Community
Center
3,010 Good Neighbor
Montessori
April,
May,
June
$21,000 4/29/2020
3 4000
Middlefield
Rd
Cubberley
Community
Center
720 Ivy Goal
Education
April,
May,
June
$6,936 4/29/2020
4 4000
Middlefield
Rd
Cubberley
Community
Center
1,616 Karer CDC, LLC April,
May
$17,286 4/29/2020
5 4000
Middlefield
Rd
Cubberley
Community
Center
1,300 Melody Academy
of Music Inc.
April,
May,
June
$8,100 4/29/2020
6 4000
Middlefield
Rd
Cubberley
Community
Center
3,060 Avenidas April,
May,
June
$12,655 4/29/2020
7 4000
Middlefield
Rd
Cubberley
Artist Studio
435 Paloma Lucas April,
May,
June
$1,344 4/30/2020
8 4000
Middlefield
Rd
Cubberley
Community
Center
3,740 Jazz Plus dba
Zohar Dance
April,
May,
June
$16,674 5/4/2020
9 4000
Middlefield
Rd
Cubberley
Community
Center
1,008 Dance Magic, LLC
May,
June
$4,330 5/6/2020
ATTACHMENT B
Attachment B - 2
Number Property
Address
Property/Space
Type
Square
Footage
Tenant Months
Deferred
Total
Deferred
Rent
Agreement
Date
10 4000
Middlefield
Rd
Cubberley
Community
Center
1,320 Living Wisdom
School
April,
May,
June
$7,239 5/6/2020
11 4000
Middlefield
Rd
Cubberley
Community
Center
4,440 Community for
Christ Church of
Palo Alto, Inc.
April,
May,
June
$18,738 5/7/2020
12 4000
Middlefield
Rd
Cubberley
Artist Studio
480 Mel Day April,
May,
June
$1,368 5/7/2020
13 4000
Middlefield
Rd
Cubberley
Community
Center
3,130 Dance Action April,
May,
June
$13,206 5/7/2020
14 4000
Middlefield
Rd
Cubberley
Community
Center
9,301 Acme Education
Group, Inc.
April,
May,
June
$84,762 5/11/2020
15 4000
Middlefield
Rd
Cubberley
Community
Center
2,841 Friends of the
Palo Alto Library
April,
May,
June
$7,040 5/13/2020
16 4000
Middlefield
Rd
Cubberley
Artist Studio
360 Barbara
Boissevain
April,
May,
June
$1,026 5/26/2020
17 4000
Middlefield
Rd
Cubberley
Community
Center
939 Dennis Moon and
Ben Moon dba
Ranger
Taekwondo
April,
May,
June
$7,875 6/9/2020
SUMMARY – LEASE DEFERRED AGREEMENTS UNDER PAMC 2.30.210 (h)
Number of Transactions
FY 2020
Total Deferred Revenue
Total 17 $242,394