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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Dave Delfino, Finance Officer / Analyst | | Meeting Date: | February 26, 2020 | | Subject: | Assignment of TAMC Lease of Property |
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| | | | | | | | | RECOMMENDED ACTION: | Assignment of TAMC Lease of Property
- APPROVE the Ground Lease Assignment and Assumption Agreement – Third Party Leased Property (“Assignment Agreement”), by and among P&S Real Estate Co. (Blackstock) and Cappo Management LIV, LLC (Victory Automotive Group) and TAMC, consenting to the assignment of two leases of property behind 1721 Del Monte Boulevard in Seaside, California; and
- AUTHORIZE the Executive Director to execute the Assignment Agreement.
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| | | | | | | | | SUMMARY: | | The Transportation Agency leases portions of the Monterey Branch Line to adjacent property owners along Del Monte Boulevard, such as P&S Real Estate Co., which has owned and operated the Lexus dealership in Seaside. These leases provide that they can be assigned with the consent of the Agency. As part of the transfer of ownership, the buyer reached out to the Agency to obtain such consent. The Assignment Agreement does not otherwise change the lease terms. |
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| | | | | | | | | FINANCIAL IMPACT: | | There would be no financial impact to consenting to this assignment. Neither the rental amount, nor any other term of the Leases will change with the assignment. |
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| | | | | | | | | DISCUSSION: | TAMC has leased two adjacent areas of the Monterey Branch Line behind the Lexus Dealership to P&S Real Estate Co. since at least 2014. Both leases were entered into on the same day and have the same terms, the only difference being their size – one if for 12,800 square feet, and the other is for 7,800 square feet.
The Lexus Dealership, including its assets, is being acquired by a new entity (Cappo Management LIV, LLC). The lease of TAMC property along the Monterey Branch Line tracks behind the dealership is such an asset. The Leases do allow assignment to another, with the consent of TAMC. The proposed Assignment Agreement was reviewed by TAMC counsel and is consistent with the terms of the existing leases. For purposes of the Assignment, both leases are being treated as one “Lease.” This does not affect the validity of the Assignment or the commitment of the new owner to abide by the lease terms. |
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