AGENDA TITLE:
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Adopt a Resolution Authorizing the Interim City Manager to Execute Lease Agreements with Lodi Historical Society and Lodi Professional Firefighters Union for the First and Seconds Floors of 114 North Main Street, Lodi, California (PW)
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MEETING DATE:
May 15, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the Interim City Manager to Execute a Lease Agreement with Lodi Historical Society for the first floor of 114 North Main Street and a Lease Agreement with Lodi Professional Firefighters Union for the second floor of 114 North Main Street.
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BACKGROUND INFORMATION:
The old firehouse located at 114 North Main Street, built in 1912, originally served as the City’s first firehouse and City Hall. The two-story building area is approximately 4,000 square feet. The building and roof are in very poor condition and uninhabitable. At its August 17, 2022 meeting, City Council received a presentation from staff regarding the building’s current condition and the Lodi Historical Society’s desire to restore the building. Staff was directed to complete an environmental assessment for the building. Lodi Historical Society submitted design plans to the City Council for the restoration and future use of the building as a historical museum on the first-floor and a union hall for the Lodi Professional Firefighters Union on the second floor.
Representatives from the Historical Society have requested to lease the building from the City with the intent of privately funding rehabilitation costs.
The term of the proposed lease agreement will be for 30 years. The rental price of $500 per month, under the Lodi Historical Society lease, and will commence upon issuance of the certificate of occupancy. After reviewing other commercial rental options and pricing in Lodi, Staff believes that this rental rate is appropriate due to the facility’s current state of disrepair and the amount of renovation that is required and will be paid by private funding and resources the Lodi Historical Society contributes to this restoration project. Upon the beginning of the second year, the $500 per month rental price will adjust with a Consumer Price Index annual escalator.
Staff recommends Council adopt a resolution authorizing the Interim City Manager to execute Lease Agreements with Lodi Historical Society and Lodi Professional Firefighters Union for 114 North Main Street as attached in Exhibit A and B respectively.
STRATEGIC VISION:
2F. Economic Development: Repurposing existing assets.
FISCAL IMPACT:
The proposed lease will provide annual rental revenue to the General Fund in the amount of $6,000 for the first year after occupancy; and $30,000 per year for the second year that will escalate annually by the change in CPI (capped at 3%) thereafter.
FUNDING AVAILABLE:
Not applicable.
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Charles E. Swimley
Public Works Director
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Andrew C. Keys
Interim City Manager