AgdaPkt 2019-05-20 Joint SA PFA - Laserfiche WebLink

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6.G. - Page 2 of 9 This included the Redwood City facility as it is located within a park. To extend the City's use of the facility until the State was able to move forward with a sale, staff worked with the California Military Department to execute a one-year License to Use California Military Department Military Property ("License"), ending July 31, 2019. This was approved by Council on November 5, 2018. In January 2019, Governor Newsom put a hold on the sale of all surplus State properties in order to review opportunities to use such properties for housing. The California Military Department agreed to issue an additional one-year License that would take effect August 1, 2019, and allow the City uninterrupted use of the facility while State staff completes their review of surplus properties. 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 four years. The California Military Department has continued to extend the original lease agreement's lease rate of .75 cents per square foot in the License for Use agreements. This was a significant discount compared to the local market rate which ranged from $1.10 to $4.50 per square foot at the time of the original lease agreement. If the State is able to complete its review of surplus properties during the term of the License the State would either keep the property for other uses or proceed to sell the site. If the State chose to sell the property, City staff would bring back information to City Council for consideration. If the license agreement is approved by the City Council, the Parks, Recreation and Community Services Department would use the facility for youth indoor soccer, basketball, volleyball, and fitness programs as well as senior fitness, crafts, and cultural programs. Patrons to Red Morton Park have also benefitted from improved parking facilities, most of which are located on the National Guard Armory property. FISCAL IMPACT Payments totaling $116,328 or $9,694 per month are required until the end of the License (July 31, 2020) or title transfer of the property, whichever occurs first. Funding for the License payments will be included in the FY 2019-20 Recommended Budget. ENVIRONMENTAL REVIEW Entering into the License agreement is exempt from the California Environmental Quality Act (CEQA) under CEQA Section 15301 (Existing Facilities) because the use of the Armory involves the continuous running and management of the facility, including the City's programs and activities within the Armory. PUBLIC NOTICE Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 289