The Transportation Agency for Monterey County is proposing to extend passenger rail service from Santa Clara County south to Salinas. The service is scheduled to start with two round trips, expanding to up to six round trips as demand warrants. The property in question is 0.09 acres located at 30 W Market Street in the City of Salinas, California, known as Monterey County Assessor’s Parcel No. 002-172-001. The parcel will be needed for the parking lot planned for the area of the Salinas Rail Station.

The Transportation Agency Board previously approved a Purchase and Sale Agreement with Frank Favaloro to purchase 30 West Market Street, Salinas on April 27, 2016.  Escrow on the property is set to close on December 31, 2016. Prior to the purchase of the property by the Agency, Mr. Favaloro has been renting a portion of the building to Olivia's Cafe for $1,600 per month in rent.  The proposed short-term lease agreement is a next step in the process that will allow Olivia's Cafe to remain on-site while efforts to relocate the business continue.

The Transportation Agency's real estate acquisition consultants, Overland, Pacific & Cutler, have been working with the owners of Olivia's Cafe since April 2016 to find suitable relocation sites for the business. Any person, household, business, farm, or nonprofit organization displaced by a public project may be entitled to relocation benefits if they are in occupancy of the property being acquired at the time of the initiation of negotiations. Persons and entities displaced by a project and determined to be eligible for benefits are classified as a “displacee.” Displaced persons must be fully informed of their rights and entitlements to relocation assistance and payments provided by the Uniform Act.

While Overland, Pacific & Cutler have provided a number of potential relocation sites in Salinas, Monterey, Seaside, and Watsonville to Olivia's Cafe, the owners have not selected one of the potential sites to move the business. As such, when the Agency takes ownership of the property on December 31, the proposed short-term lease agreement will provide additional time for the relocation team to continue working with Olivia's on a replacement site. In addition, with the Agency intending to begin demolition of the acquired buildings in the Summer of 2017, the Agency is legally-mandated to provide at least 90-days notice to vacate. The term of the proposed lease agreement, expiring on April 30, 2017, would cover that time period and be consistent with the recently-signed lease agreement with the County of Monterey for the Agency-owned property at 20 West Market Street.

For this agreement, the Agency is seeking to continue the current market-rate monthly payments of $1,600 per month for the term of the lease agreement.  Olivia's Cafe would also be responsible to payment of the utilities and maintaining insurance on the property.  Given the short-term nature of the agreement, no modifications to the property or extensions of the agreement are contemplated.