Agenda Date: 05/19/2015
Subject:
Title
Resolution approving a ground lease with Colorado State Land Board for the Art Depot, adjoining parking lot and Littleton Community Trail.
Body
Presented By: |
Michael Penny, City Manager |
POLICY QUESTION:
Does city council support approving a ground lease with Colorado State Land Board for the land that the Art Depot, adjoining parking lot and Littleton Community Trail occupy?
BACKGROUND:
The Art Depot, adjoining parking lot and the Littleton Community Trail are located on property owned by the Colorado State Land Board (CSLB). The city had two options regarding the use of the property, either purchasing the property or entering into a ground lease for the land that the Art Depot, adjoining parking lot and trail sit on. At this time, CSLB is not interested in disposing of the parcel due to the potential affect it would have on the remaining parcels. In the future, it may entertain a sale of all of the parcels in the area, which would require involvement from other entities, such as Littleton Public Schools and South Suburban Parks and Recreation. The city will continue to pursue working with those entities regarding purchase of this land from CSLB.
STAFF ANALYSIS:
The lease is for thirty years, commencing on February 6, 2013 and terminating on February 6, 2043 (the "Initial Term"). The rent for the lease is seventeen thousand five hundred dollars ($17,500.00) per year with an annual increase of three percent (3%). A one-time consideration payment in the amount of twenty six thousand two hundred and fifty dollars ($26,250.00) will be paid upon execution of the lease. The one-time consideration is for the use of the property prior to having the proper authority for the use of the pedestrian trail and the art depot and is reflective of the lease cost back to when the City first began construction on the pedestrian trail.
FISCAL IMPACTS:
The first year fiscal impact to the city is the one-time consideration payment plus the annual cost of the lease for a total of $43,750. A refundable one-time security deposit in the amount of $5,000 is also required. The future lease rate will be as noted above.
STAFF RECOMMENDATION:
Staff recommends approval of the lease.
PROPOSED MOTION:
Proposed Motion
I move to approve the resolution approving a ground lease with Colorado State Land Board for the Art Depot, adjoining parking lot and Littleton Community Trail.