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ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AMENDMENT WITH THE STOCKTON SAILING CLUB AT 4980 BUCKLEY COVE WAY
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager, or designee, to execute a lease amendment with the Stockton Sailing Club; and
2. Authorize the City Manager, or designee, to take appropriate and necessary actions to carry the purpose and intent of the Resolution.
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Summary
This action will authorize the City Manager, or designee, to execute the first (1st) lease amendment (attached as Exhibit 1 to the Resolution), with the Stockton Sailing Club (Sailing Club), for the property located at 4980 Buckley Cove Way (Attachment A - Vicinity Map). The proposed amendment will extend the lease by five additional years, for a new total of fifty-five years (the maximum allowed by City Charter), in addition to including capital investment in the property by the Sailing Club and annual community events.
DISCUSSION
Background
The property located at 4980 Buckley Cove Way is under the City’s stewardship, granted by the State Lands Commission (Chapter 1700, Statutes of 1965) in furtherance of navigation, commerce, and fisheries. The land may be leased by the City so long as the use of the land continues to fall within the guidelines of water navigation, recreation, and/or commerce that supports such activities. The property is adjacent to the Buckley Cove Park and boat launch, south of Pacific Boats Services and Stephens Marine.
Established in 1933, the Stockton Sailing Club has approximately 262 slips for lease to the public, with additional ground storage capacity and the ability to house kayaks, canoes, and paddle boards. The Marina is also capable of berthing vessels up to 52 feet. Well-established in the Stockton community, the Sailing Club hosts various types of educational, community events, such as youth and adult Learn to Sail programs, regattas, car and boat shows, marine clean up days, and others.
Present Situation
The City received a request from the Sailing Club to extend the present lease (Attachment B - Original Lease C.88.83) by an additional five (5) years. The purpose of the extension was to allow financing for the repair and replacement of the docks throughout the marina. The current lease is in good standing, and the property has been maintained at an acceptable level by the Sailing Club, therefore staff support the additional 5-year extension with the following primary terms:
1. Term will be extended an additional five (5) years, ending at midnight, June 30, 2043 (current lease term is July 1, 1988, to June 30, 2038).
2. The removal and replacement of dock A or B. The replacement will be equal to or greater in size and completed by December 31, 2027.
3. Sailing Club will host not less than six (6) community interactive events per year. Outreach for such events will incorporate all zip codes within the City of Stockton. Sailing Club will pay a penalty, equal to one month’s rent, for each missed event.
FINANCIAL SUMMARY
There is no negative financial impact to the City’s General Fund or any other unrestricted fund because of this action. Monthly lease proceeds will continue to be deposited into Economic Development’s Boat Launch Fund, Marina Division, Property Rentals account as follows: 6050-000-461000-100-140-10-60-000-000.
The Sailing Club paid rent to the City in the amount of $1,250 per month during the initial lease year, which increased annually by 3% starting in 1989. Currently the monthly lease rate is $3,415 for an annual payment of $40,980. The recommended amendment does not change the current terms of monthly payments or the annual lease escalation (valued at $76,232 in 2043); however, additional value is added through the amendment in requiring replacement of docks by the Sailing Club.
Attachment A - Vicinity Map
Attachment B - Original Lease C.88.83