AgdaPkt 2015-07-27 Joint SA and PFA

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7.1.D. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 27, 2015 SUBJECT National Guard Armory Building Lease for Community Recreation Purposes RECOMMENDATION By motion, approve and authorize the City Manager to execute a building lease with the State of California at the National Guard Armory (located in Red Morton Park) for the purposes of community recreation programs; and confirm determination that this action is exempt from CEQA. BACKGROUND The National Guard Armory, located within Red Morton Park off of Valota Road, was originally built in 1950 after the City gifted the land to the State for this purpose for $1 (Resolution 629, November 8, 1948). The 16,500 square foot building is located on 1.7 acres, and consists of an open drill floor, restrooms, office space, and a kitchen. Researching the history of correspondence between the City and the State, the City became interested in purchasing the land back from the State in 1976. The State was not interested at that time and with repeated inquiries remains committed to retaining ownership of the building and the land. The Armory is used as a recruiting, drill, and a deployment center for military personnel. It was particularly active during the Gulf War and the War in Afghanistan. Since the reduction in need for active service personnel, the Armory was reduced to having only one active member on duty this past year and presented the State with an opportunity to consolidate services to other armories located in the Bay Area. Staff reached out to the State's Military Department to see if there was an opportunity for the City to purchase the land again. When this was rejected by the State, the option of leasing the building for recreation purposes came up. Staff presented this option to the City Council and we were given the direction to negotiate a lease agreement. ANALYSIS Staff has been engaged in negotiations with the State's Real Estate Division and the State's Military Department for the past several months to determine a fair lease price as well as the terms.