Successor Agency to the Former Redevelopment Agency
MEETING DATE: 7/26/2017
TITLE:
Title
Amendment to Successor Agency's Existing Ground Lease on Property located at the Southwest Corner of E. Palm Canyon and Margot Murphy Way
End
FROM:
Curt Watts, Economic Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council acting as the Successor Agency to the former Redevelopment Agency of the City of Cathedral City approve the proposed Ground Lease Termination Agreement covering property located at the southwest corner of E. Palm Canyon and Margot Murphy Way.
Body
BACKGROUND:
Two (2) vacant parcels of land (Parcels 9 & 10) located at the southwest corner of E. Palm Canyon Drive and Margot Murphy are currently owned by Conneaut Partners, LLC and leased to the Successor Agency to the former Redevelopment Agency (see attached site exhibit).
The original 20-year lease is dated February 15, 2004 as executed by and between Tramview Land Company as Landlord and CCC Properties, LLC as Tenant. As stated in the Lease, the required use by Tenant is:
(a) automobile and/or other vehicles sales and service and all other lawful uses which are reasonably related thereto and
(b) other uses approved by Landlord in writing, which approval shall not be unreasonably withheld or delayed (collectively, a "Permitted Use").
The Tenant's interest in the Lease was assigned by CCC Properties, LLC to the City's Redevelopment Agency in March 2007 and the Landlord interest was assigned to Conneaut Partners by Quitclaim Deed of the property in November 2008. The combined parcels total approximately 1.66 acres with current lease payments of $110,940 per year plus Tenant's direct payment of annual property taxes which are currently assessed at $50,837 for 2016/17. The monthly lease payments are scheduled to increase to $119,260 per year in February 2019 and continue at that rate until the Lease expires in February 2024.
DISCUSSION:
In conjunction with...
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