05-10-2011 CC RPT 21 - Laserfiche WebLink

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City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DEVELOPMENT DEPARTMENT DATE: May 10, 2011 ITEM NO: 21 SUBJECT: FIRST AMENDMENT TO THE LEASE AGREEMENT BY AND BETWEEN THE CITY OF RIVERSIDE AND NEWMAN BROS. OF CALIFORNIA, INC., DBA A -1 GRIT COMPANY ISSUE The issue before the City Council is whether to approve the First Amendment to the Lease Agreement with Newman Bros. of California, Inc., dba A -1 Grit Company, adding a second five year option to extend. RECOMMENDATIONS That the City Council: 1. Approve the attached First Amendment (Amendment — Exhibit A) to the Lease Agreement by and between the City of Riverside and Newman Bros. of California, Inc., dba A -1 Grit Company (A -1 Grit); and 2. Authorize the City Manager, or his designee, to execute all documents necessary to amend the agreement. BACKGROUND On September 20, 2006, G.W. Singletary, Trustee of the G. W. Singletary 1998 Living Trust ( "Trust "), entered into a lease agreement with A -1 Grit for lease of a portion of property owned by the Trust at 1901 Massachusetts Avenue ( "Property "). A -1 Grit has conducted business at the site since that time, specializing in the production of washed, kiln -dried and screened aggregates used in the roofing and feed industries and specialty aggregate products to meet specific architectural and engineering specifications. They are a small business and have grown over the last five years from an operation with five (5) employees in 2006 to 21 employees today. In 2007, the City of Riverside purchased the Property from the Trust, and as a condition of that transaction, the City of Riverside assumed the lease with A -1 Grit which has a ten -year term expiring in 2016, and a five -year option to extend through October 31, 2021. The Property is contiguous to the City's Homeless Campus on Hulen Place, and a portion of the Property not under lease to A -1 Grit provides needed parking for both the Community Access Center at 2880 Hulen Place and the Riverside Community Shelter at 2840 Hulen Place. The lease payments from A -1 Grit provide long- and short -term financial support for the operations and maintenance of the City's Homeless Campus on Hulen Place, particularly costs associated with operations and maintenance of the recently- opened Community Access Center. 21 -1