HomeMy WebLinkAbout80A - GROUND LEASE LATINO HEALTH ACCESS
REQUEST FOR AGENCYI
COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
MEETING DATE:
MARCH 19, 2007
TITLE:
PUBLIC HEARING - CONTINGENT GROUND LEASE
BETWEEN LATINO HEALTH ACCESS, INC., THE
CITY OF SANTA ANA, AND THE COMMUNITY
REDEVELOPMENT AGENCY
APPROVED
D As Recommended
D As Amended
D Ordinance on 1 st Reading
o Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
CONTINUED TO
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- CITY M1I- AGER
FILE NUMBER
RECOMMENDED ACTION
CITY COUNCIL ACTION
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute a Contingent Ground Lease with Latino
Health Access, Inc. for property at 601 E. Third Street for a 20-year
term with two 10-year extensions.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Direct the Agency General Counsel to prepare and authorize the Executive
Director or designee to execute a Contingent Ground Lease with Latino
Health Access, Inc. for property at 523 E. Third Street and 526 E. Fourth
Street for a 20-year term with two 10-year extensions.
DISCUSSION
In November 2004, the City and Agency entered into a Right of Entry and
License Agreement with Latino Health Access, Inc. (LHA) in order to
undertake certain improvements to operate private recreation activities
on properties owned by the City of Santa Ana and the Community
Redevelopment Agency. LHA is a non-profit health care provider and
facilitator. Its goals include helping to build healthy families and
neighborhoods. The City and Agency wish to assist LHA in accomplishing
this goal and, therefore, entered into the License Agreement.
In early January 2006, the City entered into a contract for the
preparation of the Santa Ana Renaissance Specific Plan. The boundaries
of the Specific Plan encompass a 440-acre area that includes the subject
site. With the Specific Plan underway, LHA was invited to join in the
planning process in developing its concept.
80A-1
Contingent Ground Lease Between
LHA, the City of S.A., and CRA
March 19, 2007
Page 2
Now that the Specific Plan process is in the final stages, LHC is very
anxious to move forward with its concept. Therefore, the City and Agency
are proposing to enter into a Long-Term Contingent Ground Lease with the
following terms:
. Term - 20-years with two 10-year extensions
. Rent - $1.00 per year
. Lease contingent upon:
a. LHA obtaining title to the parcel (or ground lease for a
period equal to or greater than contingent lease with City &
Agency) not owned by City or Agency to make it part of a 4-
parcel site (Exhibit A) .
b. LHA demonstrating financial ability to construct and operate
the facility over the term of the lease. Proof of
construction financing must be submitted to and approved by
the Executive Director of the Community Redevelopment Agency.
c. LHA receiving all necessary City entitlement (e.g., zoning,
variances, etc.) and having approved building permits for the
property.
· Property to be developed and operated as a privately owned, open to
the public, community recreation center facility (Exhibit B) .
· Project design and layout, including building location, must be
designed to accommodate a potential future larger park project.
CEQA COMPLIANCE
In accordance with the California Environmental Quality Act, the project
qualifies for a Categorical Exemption (ER 2007-28) .
FISCAL IMPACT
There is no fiscal impact associated with this action.
nwn
Edwards
Assistan Director
Community Development Agency
SGH/VU/mlr
H:\ACTIONS\2007 CC\P. H. JT cc-eRA ContingentGroundLeaseLatinoHealthAccess V2 3-19-07 (2) .doc
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