In November 1996, the former redevelopment agency (RDA) entered into a ground lease with Acacia Adult Day Services for the property located at 11391 Acacia Parkway.  The ground lease is for a term of 35 years expiring on or about June 27, 2032.  At the time, the property was vacant and Acacia Adult Day Services committed to build facilities to relocate to the property and provide adult day care services for senior citizens with illnesses or disabilities, or who are otherwise in need of limited supervision.

In February 2012, the RDA was dissolved pursuant to AB 26 (Dissolution Act) and the property was transferred to the City pursuant to the Dissolution Act.  Additionally, in November 2018, Acacia Adult Day Services merged into North County Senior Services, LLC and was dissolved.  North County Senior Services, LLC is managed by Alzheimer's Orange County, a California nonprofit corporation.

The amended lease simplifies the terms of the renting of the property by eliminating the references to the tenant's development requirements.  The property is now fully developed.  The amended lease further memorializes that the City of Garden Grove is now the owner of the property and its landlord.  

Other revisions worth mentioning include:

• The term will be for 10 years commencing on December 1, 2019 with an option to extend it for another 5 years.

• The term may be terminated for convenience by either party upon 9 month's notice.

• The northern 70 feet, consisting of two rows of parking stalls, will be reserved by the City for parking lot purposes.  The City has maintained this portion of the property as a parking lot.

It is recommended that the City Council:

• Approve the attached Amended Lease Agreement between the City of Garden Grove and North County Senior Services, LLC; and

• Authorize the City Manager to execute the lease and approve modifications deemed necessary.