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Meeting Date: July 21, 2016
AGENDA ITEM: Resolution Approving a Lease Agreement with Mario Luis and Maria Teresa Maldonado for the Lease of City-Owned Property Located at 641 Main Street
MEETING DATE: July 21, 2016
PREPARED BY: Odi Ortiz, Interim City Manager
Consider approving Resolution No. approving a lease agreement with Mario Luis and Maria Teresa Maldonado for the lease of City-owned property located at 641 Main Street.
The City owns a building located at 641 Main Street ("Property") which it has leased to the Livingston Chamber of Commerce and Agriculture ("Chamber") for the past four years. The Chamber informed the City that they no longer wish to lease the property and seek to terminate the lease, effective August 1, 2016.
Mario Luis and Maria Teresa Maldonado ("Maldonado’s") currently operate a barbershop within the Property as a participant in a Chamber program aimed to assist small businesses. Given the Chamber’s interest in terminating the lease, the Maldonado’s approached the City about entering into a lease agreement for the Property. As participants in the Chamber program, the Maldonado’s have contributed funds to various repairs to the Property such as upgrades and repairs to the roof, flooring, interior walls, electrical wiring, and air conditioning/heating unit.
The Maldonado’s have agreed to the following lease terms:
• Five-year term
• $500 monthly rent, plus utilities
• All maintenance, repairs and improvements shall be completed at Tenant’s expense.
Staff recommend approval of the lease agreement and note that leasing this Property has proven to be cost-efficient because the costs of maintaining the Property are paid for by the tenant.
Continuing to lease this Property eliminates maintenance and repairs costs to the City, which is a cost savings. The rent generated by this Lease will be $6,000 per year.
1. Resolution No. 2016-
2. Lease Agreement
3. Chamber Lease Termination Letter
RESOLUTION NO. 2016-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING A LEASE AGREEMENT WITH MARIO LUIS AND MARIA TERESA MALDONADO FOR THE LEASE OF CITY-OWNED PROPERTY LOCATED AT 641 MAIN STREET AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE THE AGREEMENT
WHEREAS, the City owns certain property located at 641 Main Street consisting of approximately 1,440 square feet ("Property") which it has leased to the Chamber of Commerce and Agriculture ("Chamber") for the past four years; and
WHEREAS, the Chamber has informed the City that they no longer wish to lease the property and seek to terminate the lease effective August 1, 2016; and ; and
WHEREAS, Mario Luis and Maria Teresa Maldonado ("Tenants") approached the City about leasing the Property for the purpose of operating a barber shop; and
WHEREAS, the terms of the proposed five-year lease agreement include monthly rent in the amount of five hundred dollars ($500) and utilities; and
WHEREAS, the Tenants will be responsible for maintaining the property including any and all improvements necessary to meet local and state regulations; and
WHEREAS, leasing this Property is cost-effective because the cost to the City to maintain this Property is greater than leasing it out to a private party to maintain; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston does hereby approve a lease agreement with Mario Luis and Maria Teresa Maldonado to lease 641 Main Street and authorizes the Interim City Manager to execute the Agreement in a form approved by City Attorney.
Passed and adopted this 21st day of July, 2016, by the following vote:
Rodrigo Espinoza, Mayor of the City of Livingston
I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Special Meeting of the City Council of the City of Livingston this 2st day of July, 2016.
Betty Cota, Deputy City Clerk of the City of Livingston