FROM:
Development Services
SUBJECT:
Title
Lease Agreement for Fire Station 81
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RECOMMENDATION:
Recommendation
1. Approve Lease Agreement between the Fontana Fire Protection District and the City of Fontana.
2. Authorize the City Manager and/or his designee(s) to execute Lease Agreement on behalf of the City of Fontana, including extensions and non-material amendments.
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COUNCIL GOALS:
• Improve public safety by increasing operational efficiency, visibility and availability.
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
The City of Fontana owns a parcel of land located at 16615 Casa Grande Avenue, Fontana, CA, more specifically described as APN 1118-371-37. The parcel is approximately 58,172 square feet and contains the newly constructed Fire Station 81. Construction of the new Fire Station is anticipated to be completed imminently and shall be occupied by San Bernardino County Fire Department staff to further the fire safety and fire protection goals and demands of the City of Fontana.
The lease for this property is proposed at current market value so that the City can realize revenues similar to what would otherwise be provided by alternative improvement. Current rent for this facility will be $0.91 per square foot, or a monthly gross rental amount of $52,936.52, which amount shall increase by 2% each new fiscal year beginning July 1, 2024.
FISCAL IMPACT:
With approval of the Lease Agreement, the Fontana Fire Protection District will pay $52,936.52/month in total rent for the use of Fire Station 81 commencing on March 1, 2024. The initial lease payment for the period March 1, 2024, through June 30, 2024 shall be due and payable on date of commencement. Future Lease payments will be made bi-annually in July and January and will reflect the amount due for the upcoming six months. Rental income to be deposited in Fund 115. Appropriate paperwork will be sent to the Budget office and revenue budget will be updated with the Mid-Year Budget report.
MOTION:
Approve staff recommendation.