The Transportation Agency's property referenced in both the settlement agreement and new lease is an approximately 3,300 square feet area represented by a thirty-three (33) foot encroachment into the Monterey Branch Line right-of-way for an approximate length of one hundred (100) feet adjacent to 1845 Del Monte Avenue, Seaside, California. As a point of reference, Storelli Brothers Auto Body is located adjacent to, and has been using, the leased property.
A dispute has arisen with respect to the existence and amount of back rent due and owing to the Transportation Agency for the use and possession of the leased property (by 5GO LLC and/or Peter Blackstock), in that the Transportation Agency contends that the amount of $23,443.20 is due and owing and 5GO LLC and Peter Blackstock deny all liability. Peter Blackstock and/or 5GO LLC are in the process of selling 1845 Del Monte Boulevard to a third party, and wish to enable the third party to enter into a new lease for the property, free and clear of any rent disputes. The proposed settlement, totaling $12,058.20, is a compromise on the disputed claims for back rent that will allow the interests of both parties to move forward.
The new lease with SFT Real Estate LLC has an initial term for three years beginning May 1, 2020 and ending April 30, 2023. Upon completion of the initial lease term the lessee has the option for eight (8) additional three-year periods. The lease terms include semi-annual payments of $3,150.87. Rent will increase at a rate of three percent (3%) annually for each year of such term, cumulative and compounded.
Recognizing the Transportation Agency's future use of the Monterey Branch Line as a transportation corridor, the Agency has retained the right to terminate the lease upon twelve (12) months notice given to SFT Real Estate LLC. The Agency has also retained the right, if necessary, for underground easements and temporary construction easements along this portion of the Monterey Branch Line.