The Transportation Agency's property referenced in the attached lease is an approximately 35,000 square feet area represented by a fifty (50) foot encroachment into the Monterey Branch Line right-of-way for an approximate length of seven hundred (700) feet adjacent to 1711 Del Monte Boulevard, Seaside, California. As a point of reference, the Land Rover and Volvo car dealerships are located adjacent to the leased property.
The new lease with Monterey Motors, Incorporated, has an initial term for four years beginning January 1, 2021 and ending December 31, 2024. Upon completion of the initial lease term the lessee has the option for two (2) additional four-year periods. The lease terms include monthly payments of $4,360.34. 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 Monterey Motors, Incorporated. The Agency has also retained the right, if necessary, for underground easements and temporary construction easements along this portion of the Monterey Branch Line.