AgdaPkt 2018-11-05 Joint SA PFA - Laserfiche WebLink

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6.G. - Page 2 of 11 build out. Because of the City's interest in purchasing the Armory site, the CMD added it tothe list of State surplus properties. On March 5, 2018 a bill was submitted to the Committee on Veteran Affairs for approval of sale of a number of properties throughout California including the Redwood City Armory. The initial three year lease executed in 2015 expired July 31, 2018, and the State chose not to enact a lease extension. CMD and City staff discussed continued City use of the Armory until the sale process concluded, however, during that period some authority for the site was transferred from the CMD to the State's Department of General Services (DGS). The DGS handles sales of all State property. The CMD was working on a new lease agreement with City staff for continued City use of the Armory during the sale process, but was unable to complete that agreement when authority for the property was transferred. DGS was not interested in entering into a new lease for a site, but the CMD used its authority to license use of the property to allow continued City use during the sale process. As the CMD developed a new license, DGS requested copies of executed agreements. As CMD had not provided copies to the City at that time there were none to review. DGS stated to the CMD they intended to evict the City from the property on October 26, 2018 unless a license was signed. The CMD provided a license for signature on October 25, 2018 and after review by the City Attorney's Office it was determined the best way to move forward was to execute the license immediately and ratify the agreement at the next available City Council meeting. The City Manager executed the agreement on October 26, 2018. The City Council has the authority to enter into leases or licenses pursuant to Section 3.5 of the City Charter. Because of the immediate and unexpected notification from the Department of General Services of their intent to evict the City from the Armory facility, there was insufficient time to receive prior City Council approval. Staff is seeking ratification of the City Manager's execution of the license for City use of the Armory site during the sale process. The DGS has recently identified the process to purchase the property and the City Council will be considering that at a later date. ANALYSIS The Parks, Recreation and Community Services Department has successfully accommodated overflow athletic programs, provided new youth and adult recreation programs, provided art space for partner organizations, and stored Parks and Downtown Events equipment at the Armory for the past three years. Staff initiated communication with the California Military Department in June 2018 to extend the lease for at least another year. With the passage of Assembly Bill 3251, the National Guard Armory at Red Morton Park will be sold. To allow continued City use of the Armory while the sale process is underway, City staff had to complete a new "License for Use" on short notice; if this had not happened, the building would have been locked and the City would be evicted. The signed License allows for the extension of use for a year or until the property is sold to a government agency. The National Guard Armory facility sits on 1.69 acres and could provide additional public space to Red Morton Park, a long time City goal. In the immediate time frame, if the City Council ratifies the License agreement, the Facility will continue to serve youth sport programs and the newly paved parking area City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org 472