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HomeMy WebLinkAboutMINUTES - 04132010 - C.101RECOMMENDATION(S): 1. DECLARE the real property located at 1014 Florida Avenue and 217 South 11th Street in Richmond (APN 550 340 005-2) (the Property) to be surplus and no longer necessary for the present or future needs of the County. 2. APPROVE the donation of the Property to the Rosie the Riveter Trust, a California nonprofit public benefit corporation (the Trust), as permitted by Government Code section 25372. 3. AUTHORIZE the Chair of the Board of Supervisors to execute a Grant Deed in a form approved by County Counsel to transfer the Property to the Trust. AUTHORIZE the General Services Director, or designee, to execute documents related to the transfer of the Property to the Trust that (i) are approved as to form by County Counsel; and (ii) implement the terms of this board order. 4. AUTHORIZE the General Services Director, or designee, to execute all other documents, approved as to form by County Counsel, necessary to complete this transaction, including (a) a transfer agreement that sets forth the terms of the transfer of the Property to the Trust, APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 04/13/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: GSD 313-7100 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: April 13, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Supervisor Gioia, GSD-Real Estate Div, County Counsel C.101 To:Board of Supervisors From:Michael Lango, General Services Director Date:April 13, 2010 Contra Costa County Subject:Conveyance of Real Property to Rosie the Riveter Trust, Richmond Area (b) a termination agreement that terminates the existing lease between the County and the Trust, (c) a lease between RECOMMENDATION(S): (CONT'D) the County and the Trust, under which the County leases back a portion of the Property for $1.00 per year for 20 years, (d) a sublease between the County and Richmond Elementary School, a nonprofit corporation (RES), or a related entity, for that portion of the Property leased back from the Trust, (e) a reimbursement agreement, under which the Trust reimburses the County for costs incurred by the County under the existing lease and costs incurred by the County in completing this transaction, (f) an assignment agreement, under which a lien recorded against the Property is assigned to the Trust, and (g) other ancillary ministerial documents, such as escrow instructions. 5. DETERMINE that (i) the transfer of the Property to the Trust is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3); and (ii) the sublease to RES is categorically exempt from CEQA under CEQA Guidelines section 15301 Class 1(a). FISCAL IMPACT: No impact on the General Fund is anticipated. BACKGROUND: The Property is the site of the Maritime Child Development Center (the Maritime Center), an historic building that was constructed by Kaiser Engineering in 1943 for use by mothers working at the Kaiser shipyards. The Property was acquired by the County in 1995 with funds made available through a grant from the East Bay Community Foundation (the Foundation). The County acquired the Property to house County child care development programs in the Maritime Center. The County operated child care programs at the Maritime Center until 2004. At that time, the Maritime Center was deemed unsafe and the programs were moved to another location in Richmond. In 2004, the County leased a portion of the Property to the Richmond Elementary School (RES), a private non-profit corporation. Currently, RES is paying the County $500 per month in rent. RES operates an early child care program through Head Start from the site using modular buildings. One of the modulars (the County Modular) was purchased with funds provided by the Administration for Children and Families, an agency of the Federal government (ACF). The County holds title to the County Modular, which is considered equipment. ACF has a lien on the County Modular that restricts the County’s ability to transfer ownership of the County Modular. In 2006, the County entered into a long-term lease with the Rosie the Riveter Trust (the Trust) for that portion of the Property that houses the Maritime Center. The lease, under which the Trust pays $1.00 per year in rent, runs through September 30, 2061. The Trust entered into the lease for the purpose of rehabilitating the Maritime Center. The Trust intends to rehabilitate the building using green building techniques in a manner that will preserve the building’s standing on the National Registry of Historic Places. The rehabilitation is supposed to include water damage repair, mold, asbestos and lead abatement, and upgrading the building to be compliant with the Americans with Disabilities Act (ADA) and seismically safe. Once the building is rehabilitated, the Trust intends that it be used as a day care center, a museum, an historic site, and the administrative offices of a community-based charitable organization. The Trust has requested that the County donate the Property to the Trust, rather than continuing to lease it to the Trust under the existing lease. Having title to the Property would enable the Trust to take advantage of various tax benefits that would increase the funds available to rehabilitate the Maritime Center. To accommodate the Trust’s request, while simultaneously permitting RES to continue to use a portion of the Property for child development as part of the Head Start program (and as a site for the County Modular), staff recommends that: (1) the County lease back from the Trust a portion of the Property that is currently used by RES, and (2) the County enter into a sublease with RES that permits RES to continue a Head Start program from the modular buildings. The lease between the County and the Trust will be for a 20-year term at $1.00 per year. The County will have the right to terminate the lease at any time with no cost or penalty. At the end of the lease, the County will have the right to remove the County Modular from the Property, or to transfer ownership of the County Modular to the Trust (with ACF’s consent). In no event would the Trust be able to compel the County to remove the County Modular from the Property. The lease between the County and RES will be for a term that does not exceed 20 years. If the Board adopts staff’s recommendations, the transfer of the Property to the Trust will be subject to each of the following conditions: 1. The County reserves a power of termination that will enable the County to take the Property back if it is ever used for anything other than activities, including administration, that directly relate to child care, education, or historic preservation. 2. The County leases back a portion of the Property from the Trust for 20 years, at $1.00 per year, with the County having the option at the end of the lease to remove the County Modular from the Property or to transfer it to the Trust. 3. The County has the right to enter into a sublease with RES. 4. The Trust takes the Property subject to all existing liens, encumbrances, and encroachments. 5. The Trust reimburses the County for the approximately $20,000 in operating costs incurred by the Trust under the existing lease between the Trust and the County. These costs are to be reimbursed to the County once the Trust and its affiliates complete the financing for the rehabilitation project. 6. The Trust reimburses the County for all costs incurred in connection with the transfer of the Property. These costs are to be reimbursed to the County once the Trust and its affiliates complete the financing for the rehabilitation project. CONSEQUENCE OF NEGATIVE ACTION: The long term lease between the County and the Trust will continue in effect and the Trust The long term lease between the County and the Trust will continue in effect and the Trust will have less money available to it to renovate the Maritime Center. CHILDREN'S IMPACT STATEMENT: