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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Dave Delfino, Finance Officer / Analyst | | Meeting Date: | June 28, 2017 | | Subject: | Extension of Branch Line Leases with P & S Real Estate |
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| | | | | | | | | RECOMMENDED ACTION: | AUTHORIZE the Executive Director to execute two lease extensions with P & S Real Estate Co. |
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| | | | | | | | | SUMMARY: | P & S Real Estate Co exercised their options to extend the Monterey Branch Line right-of-way leases they presently have with the Agency for an additional three year period. It is in the Agency’s best economic interest to continue these leases. |
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| | | | | | | | | FINANCIAL IMPACT: | The P & S Real Estate Co. leases will generate rent of $ 28,171.80 per year for the Agency. |
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| | | | | | | | | DISCUSSION: | P & S Real Estate Co. has been leasing two separate parcels totaling 20,600 square feet of the Monterey Branch Line right-of-way since April of 2005. They have been very good tenants. They have complied with all the terms of the present leases. In the proposed lease extension, the original lease term shall be extended for an additional three years beginning July 1, 2017 and ending June 30, 2020. These leases contain provisions that allow the Agency to cancel on a twelve months notice when the property is needed for the Monterey Branch Line transit project. |
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