HomeMy WebLinkAboutAgenda Statement 1982/11/16 Item 11a~~
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COUNCIL AGENDA STATEMENT
Item lla
Meeting Date 11/16/82
TITLE• Resolution `~~ ~ / Approving Lease Agreement between the City
• of Chula Vista, 805 Properties, and Denny's P.estaurant far
signage on surplus right-of-way
TTED BY: City Engineer ~~ (4/5ths Vote: Yes_No X )
At the meeting of October 28, Council gave tentative approval to locate a
fr eway-oriented sign in public right-of-way near the 805 freeway. Staff was
di ected to return with an agreement for such sign. Therefore, it is my
RECOMMENDATION: That Council approve the resolution and the agreement for
th signage on surplus right-of-way.
SSIONS RECOMMENDATION: Not applicable.
DIISCUSSION:
C uncil decided that they would allow a sign with a maximum of 250 square feet
t be installed in excess right-of-way near an unnamed cul-de-sac intersecting
with Vista lay. Instead of an encroachment permit, staff is recommending that
t e Council enter into a lease agreement between the City of Chula Vista and
t e affected property owners for use of this property. I believe a lease
a reement to be more appropriate than an encroachment permit for the following
r asons:
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The sign is for commercial benefit and, therefore, the public should
receive some financial benefi t for the value that it is giving to the
owners of the sign.
There was a precedent action by the City Council with KOA Kampgrounds
whereby KOA installed a sign on an excess parcel of land owned by the
City. We rec eive rental from them for that property.
Just as with the ~COA situation, the ultimate goal is to sell a portion of
this right-of-way, if not all, when the arhole Bonita Glen area develops.
~ the case of KOA, the City leased an excess parcel of approximately 7,000
aware feet to KOA for a sign. In exchange, KOA landscaped the parcel and
~intains the landscaping and pays the City approximately $1,000 per year.
propose to lease the approximately 500 square feet of land to Denny's and
15 Properties but since there will be two or three parties who will
~entually use the sign for advertising, I propose to rent the entire parcel
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Meeting Date 11/16/8?_
for $600 per year and prorate it based upon 250 square feet of sign or $2.40
per square foot. Therefore, Denny's wi 11 pay $240 per year for the sign and
the remainder when buil will pay $360 per year. The City reserves the right
to lease an additional 150 square feet of signage on the lessee's free
sta ding sign. The term of the lease is 20 years with an option for a 10-year
ren wal. However, the terms of the lease would allow the City to sell the
pro erty to the adjacent landoHrners should we decide to vacate that on the
cul de-sac or sell off the excess property. The condition of sale, however,
wou d allow that sign tp remain.
IMPACT: Discussed in report.
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