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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Michael Zeller, Director of Programming & Project Delivery | | Meeting Date: | May 24, 2017 | | Subject: | 26 West Market Street Short-Term Rental Agreement |
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| | | | | | | | | RECOMMENDED ACTION: | | AUTHORIZE the Executive Director to enter into a short-term lease agreement for the Agency-purchased property at 26 West Market Street with Bright Land, LLC. |
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| | | | | | | | | SUMMARY: | | The Transportation Agency has completed the acquisition of the property at 26 West Market Street, Salinas. This short-term lease agreement with Bright Land, LLC would allow the Agency's real estate agents to finalize relocation efforts up to June 30, 2017. |
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| | | | | | | | | FINANCIAL IMPACT: | | The Agency entered into a Purchase and Sale Agreement with Susan McBride to purchase 26 West Market Street for $756,000, with close of escrow effective May 4, 2017. This lease agreement with Bright Land, LLC would provide monthly rent to the Agency of $2,142 for the term of the agreement. |
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| | | | | | | | | DISCUSSION: | 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 located at 26 W Market Street in the City of Salinas, California, known as Monterey County Assessor’s Parcel No. 002-172-002. 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 Susan McBride to purchase 26 West Market Street, Salinas on March 22, 2017. Escrow on the property closed on May 4, 2017. Prior to the purchase of the property by the Agency, Ms. McBride had been renting the building to Bright Land, LLC for $2,142 per month in rent. The proposed short-term lease agreement is a next step in the process that will allow Bright Land, LLC to remain on-site while efforts to complete the relocation process are completed.
For this agreement, the Agency is seeking to continue the current market-rate monthly payments of $2,142 per month for the term of the lease agreement. Bright Land, LLC 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. This lease agreement has been reviewed and approved by Agency counsel. |
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