FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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AMENDMENT NO. 4 TO THE REAL PROPERTY LEASE AGREEMENT, SPECIFICATION NO. L-018, WITH TREESAP FARMS, LLC.
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Approve Amendment No. 4 to the Real Property Lease Agreement, Specification No. L-018, with TreeSap Farms, LLC, providing for a lease extension effective December 1, 2021 through November 30, 2026, with the option to renew for one additional 5-year period, at an annual rate of $8,623.74 plus the seasonally-adjusted change in the Consumer Price Index for all Urban Consumers.
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BACKGROUND
The Orange County Sanitation District (Sanitation District) entered into a 10-year lease agreement with Village Nurseries effective December 1, 1996, in connection with real property located across Garfield Street from Plant No. 1, expring November 30, 2006. The term of the lease provides for lease extensions in four, five-year, mutually negotiable increments, or up to 20 additional years. The proposed Amendment No. 4 would be for the fourth five-year lease extension with TreeSap Farms, as successor to Village Nurseries Wholesale.
RELEVANT STANDARDS
* Protect OC San assets
PROBLEM
The current Amendment No. 3 expires on November 30, 2021.
PROPOSED SOLUTION
Approve Amendment No. 4 to the Real Property Lease Agreement, Specification No. L-018, with TreeSap Farms, LLC, providing for a lease extension effective December 1, 2021 through November 30, 2026.
TIMING CONCERNS
Expiration of current lease term on November 30, 2021.
RAMIFICATIONS OF NOT TAKING ACTION
Property would be vacant and TreeSap Farms would be required to remove the nursery from OC San's property.
PRIOR COMMITTEE/BOARD ACTIONS
February 2017 - Executed Amendment No. 3 to the agreement, extending the lease for 5 years.
September 2011 - Approved Amendment No. 2 to the agreement, extending the lease for 5 years...
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