1991 AGN JUL 02 I11 - Laserfiche WebLink

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TO: HONORABLE MAYOR and CITY COUNCIL FOR: Council Meeting of 2 July 1991 �R �± FROM: Jaime R. A9 uilera Director of Community DevelopmeniG SUBJECT: Lease Agreement with Adams Sign Company Regarding File Number DCV -7-91, as Approved by the Planning Commission E BACKGROUND: During the Public Hearing of April 9, 1991, the Planning Commission approved File N Number DCV -7-91 for the Adams Sign Company. The approval was granted for the construction of ten freeway signs. If the City Council concurrently allows the signs to be build on City property, the lease of said property will yield to the City an annual income of $160,000, which will result in a 3.2 million dollar revenue over a 20 year lease period. It is proposed that the signs be placed on City property on parcels located among the right-of-way areas which are adjacent or near freeways. Each parcel will be approximately 8 feet by 55 feet. Q ALTERNATIVES: The attached lease agreement has been reviewed by our City Attorney. It provides for the conditions of approval set by the Planning Commission. As an alternative, the City could explore the possibility of negotiating a different lease agreement with Adams, however the amounts indicated are standard for the industry as evidenced by the attached sample agreement with the railroad. FINANCIAL IMPACT: The cost to the City in services, utilities, or administration is zero yet the income will be at P least the lease amount stated and if the City rents the two sign faces it will own, the total yearly income could be $220,000. O If, however, the Council would opt to not enter into a lease agreement, there would be no income to the City. ENVIRONMENTAL IMPACT: R The Planning Commission has issued a Negative Declaration for the project. Also, the Planning Commission has created a condition of approval which will not allow any trees T to be cut or trimmed in favor of any sign (see attached). 1 Agenda Report CCADAMS2 PAGE 1 OF 2 ni-E NO. __ to = a--------------�