Laserfiche WebLink
MCity Council Memorandum <br /> City �1"Arts&Innovation <br /> TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 18, 2012 <br /> FROM: PUBLIC UTILITIES DEPARTMENT ITEM NO: 35 <br /> WARDS: ALL <br /> SUBJECT: LEASE AGREEMENT WITH 2010-1 CRE CA RETAIL, LLC, FOR PROPERTY <br /> LOCATED AT 1408-1520 SOUTH E STREET IN SAN BERNARDINO <br /> ISSUE: <br /> The issue for City Council consideration is approval of a Lease Agreement with 2010-1 CRE CA <br /> Retail, LLC, ("Colony") for use of property currently identified as the Empire Gateway Shopping <br /> Center located at 1408-1520 South E Street, San Bernardino, California 92408, bearing Assessor <br /> Parcel Number 0141-312-02 ("Property"). <br /> RECOMMENDATIONS: <br /> That the City Council: <br /> 1. Approve the Lease Agreement with 2010-1 CRE CA Retail, LLC; <br /> 2. Authorize the City Manager, or his designee, to execute the Lease Agreement; and <br /> 3. Authorize the City Manager, or his designee, to terminate the existing Lease Agreement <br /> with 2010-1 CRE CA Retail, LLC, successor to UDO Investors X, LLC. <br /> BOARD RECOMMENDATION: <br /> This item was unanimously approved by the Board of Public Utilities on December 7, 2012. <br /> BACKGROUND: <br /> In March 1985, the City of Riverside entered into a 50-year ground lease on the 5.13 acre Property <br /> with Sanvista Development, who constructed certain structures for lease to various <br /> homeownership related retail businesses. Since then, the ground lease has had several <br /> assignment and assumptions, with the last assignment being to UDO Investors X, LLC ("UDO") in <br /> March 1999. UDO maintained the lease and the property in a satisfactory manner until early 2010 <br /> when they defaulted on both the City's ground lease payments with the City and their bank <br /> mortgage. The bank foreclosed on their loan and subsequently, the property improvements <br /> reverted back to the investor, Colony. <br /> 35-1 <br />