HomeMy WebLinkAbout1996-02-15 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:FEBRUARY 15, 1996 CMR:147:96
S~CT:INTERIM LEASE OF THE 7.7-ACRE LEE
QUARRY/RESERVATION PARCEL LOCATED IN THE PALO
ALTO FOOTHILLS
REQUEST:
This is an informational report and no Council action is required.
POLICY IMPLICATIONS:
An interim lease does not represent any changes to existing City policy.
EXECUTIVE SUMMARY:
In 1981, the Lee family granted a 7.7-acre parcel, located in the Palo Alto foothills west of
Foothills Park, to the City for conservation, including park and recreation purposes (see site
map attached). In granting the parcel to the City, the Lee family reserved an estate until
March 17, 1996, when ownership of the site reverts to the City. Subsequently, the Lee
Quarry, including this 7.7-acre parcel, was sold to First American Title Guaranty Company
on behalf of John Arrillaga.
Mr. Arrillaga has been using the 7.7-acre parcel for uses accessory to the construction of a
residence on his adjacent parcel. He would like to acquire the parcel from the City through
either a purchase or exchange, or, if that is not possible, to lease the parcel for approximately
five years, until such time as he completes the construction on his adjacent parcel. Staff has
ordered a market rental value and sales value appraisal of the property and intends to enter
into an interim month-to-month lease of the parcel to Mr. Arrillaga for a period not to exceed
one year, during which time staffwill remm to Council with additional information on the
feasibility of a sale, exchange or long-term lease.
CMR:147:96 Page 1 of 2
FISCAL IMPACT:
The interim lease will be at the current market rental value to be established by an appraisal
of the parcel.
ENVIRONMENTAL ASSESSMENT:
The lease of an existing facility is Categorically Exempt under Class I - (existing facility)
requirements of the California Environmental Quality Act (CEQA).
ATTACHMENTS:
Attachment A - Site Map
PREPARED BY: Martha E. Miller, Financial Analyst, Real Property
DEPARTMENT HEAD APPROVAL:
Harrison
Deputy City Manager,
Administrative Services
CITY MANAGER APPROVAL:
CC: John Arrillaga
ity Manager
CMR:147:96 Page 2 of 2
Attachment A