Item Coversheet

Agenda Item - 6.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Lisa L. Kim
Dept.:City Manager 

Dept.: Economic Development 
Subject:

Approval of a License Agreement with Rexford Industrial Realty, Inc., to lease the southern portion of Brady Way, Garden Grove. (Amount:  $43,150.68 per year) (Action Item)

Date:9/24/2019

OBJECTIVE

To request that the City Council consider a License Agreement (Agreement) between the City of Garden Grove (City) and Rexford Industrial Realty, Inc., (“Licensee”) to lease the southern portion of Brady Way, south of Stanford Avenue.

BACKGROUND

Brady Way, a public street south of Stanford Avenue is owned in fee by the City, and was a part of Knott Street, until 1966 when CalTrans relocated Knott Street for the SR-22 Freeway widening project.  Brady Way was created as a cul-da-sac that terminates at the SR-22 Freeway.  The remnant street serves various utilities and provides access to the rear portions of the two (2) adjacent properties at 12777 Knott Street (The Garden Room) and 12821 Knott Street (former Next Level Sports Complex).

 

The Licensee acquired the property located at 12821 Knott Street (former Next Level Sports Complex), adjacent to the cul-da-sac on the southern portion of Brady Way.  The Licensee wishes to expand the industrial facility and operations of its property.  The purpose of this Agreement is to lease the Licensee with the additional square footage of land (southern portion of Brady Way) to comply with the City’s Development Standards for required parking, truck circulation, and landscaping.  To ensure a permanent solution, the Licensee has inquired about terminating Brady Way parallel to its northern property line and acquiring that southern portion.  A provision has been included in the Agreement that provides the Licensee an option to purchase the southern portion of Brady Way.  In order to facilitate this disposition of land, the City was required to vacate and abandon the area.  Staff was directed to proceed with the street vacation.

 

On August 15, 2019, the Planning Commission approved Resolution No. 5962-19 in finding and reporting to the City Council, pursuant to Government Code Section 65402, that the proposed vacation and disposition of the southern portion of Brady Way conforms with the City’s General Plan.  On August 27, 2019, the City Council adopted Resolution No. 9586-19 declaring its intention to vacate and abandon the southern portion of Brady Way and set a public hearing date for September 24, 2019.  On August 28, 2019, the area was posted with the Resolution No. 9586-19 in accordance with Chapter 3 of part 3 of Division 9 of the Streets and Highway Code, Sections 8320 et seq.   All existing public utility easements located on Brady Way will be reserved.  The vacation will eliminate the City’s obligation to maintain the street and release the City of any liability.

DISCUSSION

The terms of the Agreement are as follows:

 

  • Premises:  Approximately 40,910 square feet.
  • Term:  Beginning upon the Agreement approval and continue on a month-to-month basis until termination.
  • Consideration:  A monthly fee to the City in amount of $3,595.89.
  • Use: The parking and storing of motor vehicles, semi-trailers, truck circulation, landscaping, and wrought iron fencing and/or split-face block wall.
  • Option:  Licensee is granted the option to purchase the portion of the premises.
FINANCIAL IMPACT

There is no impact to the General Fund.

RECOMMENDATION

It is recommended that the City Council:

 

  • Approve the License Agreement with Rexford Industrial Realty, Inc., for the southern portion of Brady Way; and

 

  • Authorize the City Manager to execute the License Agreement on behalf of the City.

 

 

By:  Paul Guerrero, Sr. Program Specialist




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
License Agreement for GG Rexford re Portion of Brady Way9/12/2019AgreementLicense_Agreement_for_GG_Rexford_re_Portion_of_Brady_Way.pdf
Planning Commission Resolution No. 5962-199/12/2019ResolutionPlanning_Commission_Resolution_No._5962-19.pdf
Planning Commission Minute Excerpt of August 15, 20199/12/2019Backup MaterialPlanning_Commission_Minute_Excerpt_of_August_15__2019.pdf
City Council Resolution No. 9586-199/12/2019ResolutionCity_Council_Resolution_No._9586-19.pdf