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WATER I ENERGY I LIFE
<br />RIVERSIDE PUBLIC UTILITIES
<br />J
<br />PUBLIC UTILITIES
<br />BOARD OF PUBLIC UTILITIES
<br />Board Memorandum
<br />DATE: JANUARY 9, 2017
<br />ITEM NO: 10
<br />SUBJECT: CITY OF RIVERSIDE COMMERCIAL LEASE AGREEMENT, 4.2 ACRES VACANT
<br />LAND - E. STREET, SOUTH OF ORANGE SHOW ROAD, SAN BERNARDINO,
<br />CALIFORNIA, WITH DRIVETIME CAR SALES COMPANY, LLC, FOR $832,000 IN
<br />REVENUE FOR THE FIVE YEAR INITIAL TERM
<br />ISSUES:
<br />Recommend that the City Council approve the City of Riverside Commercial Lease Agreement for 4.2
<br />Acres of Vacant Land — E Street, South of Orange Show Road, San Bernardino, California, with
<br />DriveTime Car Sales Company, LLC, of Phoenix, Arizona, for an initial term of 5 years and $832,000
<br />in rental revenue to the Water Utility.
<br />RECOMMENDATIONS:
<br />That the Board of Public Utilities recommend that the City Council:
<br />Approve the City of Riverside Commercial Lease Agreement for 4.2 Acres of Vacant Land — E
<br />Street, South of Orange Show Road, San Bernardino, California, with DriveTime Car Sales
<br />Company, LLC, for an initial term of 5 years and $832,000 in rental revenue to the Water
<br />Utility;
<br />2. Authorize the City Manager, or his designee, to execute the City of Riverside Commercial
<br />Lease Agreement for 4.2 Acres of Vacant Land — E Street, South of Orange Show Road, San
<br />Bernardino, California, with DriveTime Car Sales Company, LLC, and all necessary
<br />documents, including making minor non -substantive changes to those documents; and
<br />3. Authorize the City Manager, or his designee, to execute each of the four 5 -year extensions to
<br />the lease, in accord with the terms of the lease.
<br />BACKGROUND:
<br />The City of Riverside, through its Public Utilities Department (RPU), owns the 4.2 -acre parcel of
<br />vacant land at 1388 South E Street, San Bernardino, located adjacent to the 215 Freeway south of
<br />Orange Show Road ("Property"). For approximately 37 years, the Property was leased from RPU as
<br />an auto dealership, first to Holiday Oldsmobile and subsequently to Center Chevrolet. The most
<br />recent lease terminated in 2008 under its own terms. Upon Center Chevrolet's vacancy, the
<br />buildings, which were in need of repair, became a magnet for graffiti, vagrancy and vandalism. In an
<br />effort to mitigate the various issues, RPU had the structures demolished in 2010 and Property has
<br />remained vacant.
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