DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AMENDMENT 1 TO PROPERTY LEASE AGREEMENT WITH OCEANSIDE CHAMBER OF COMMERCE FOR USE OF CITY OWNED PROPERTY LOCATED AT 928 NORTH COAST HIGHWAY
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 1 to Property Lease Agreement with Oceanside Chamber of Commerce, for use of City-owned property located at 928 North Coast Highway for a six-month term beyond the current expiration date, with total revenue of $12,000; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
In 1988, the Chamber of Commerce (Chamber) commenced operating the Oceanside Welcome Center at 928 North Coast Highway. The property was originally owned by the Community Development Commission of the City of Oceanside (CDC). On March 22, 2011, the CDC deeded the property to the City of Oceanside (City). On August 16, 2000, the CDC entered into a Property Lease Agreement (Lease) and a Property Improvement and Financial Agreement for the use and expansion of the Oceanside Welcome Center and new Chamber of Commerce offices. At that time, the City agreed to fund $1,000,000 in the form of an internal loan that was paid back in full over 15 years by the Chamber to finance the expansion of the Welcome Center and construction of a new office building that is currently used as the Chambers administrative offices. The initial term of the Lease was for 25 years. On March 17, 2010, Visit Oceanside took over the operations of the Oceanside Welcome Center, and subleased the Welcome Center building from the Chamber at no charge.
The Chamber is a recognized California non-profit business membership organization, dedicated to marketing business opportunities within the City, promoting the City to increase tourism and travel, helping the business community through certain education and recreational programs and related services, and providing activities for the general welfare of the public, including the citizens of Oceanside. The Chamber’s mission is to boost economic growth, and ensure our community has the skilled workforce it needs to succeed. For the past 25 years, the programs, services and activities provided by the Chamber to the community have been considered valuable consideration in lieu of rent, and therefore, they have occupied the premises rent free.
The current Lease is set to expire on August 15, 2025. The Chamber is actively working to securing a permanent facility for its Chamber administrative offices through the purchase of a new building. At this time, the Chamber is requesting to extend the Lease term, as additional time is necessary to complete the transaction. The term of the proposed Amendment 1 to Property Lease Agreement (Amendment) will be for six-months, extending the term through February 15, 2026. The rent will be $2,000 per month, generating $12,000 in revenue during the extended term. In addition to the monetary rent payment, the Chamber will continue to offer valuable in-kind services to the community. The Chamber will be responsible for all costs related to the facilities including maintenance and utilities. Upon expiration of the Chamber Lease, the City plans to take possession of the Chamber administrative building for internal City services and enter into a new Lease with Visit Oceanside, who operates the Oceanside Welcome Center. Visit Oceanside will continue its occupancy at the Oceanside Welcome Center, offering valuable services to the City. These valuable services shall constitute additional consideration to be paid by Visit Oceanside for the use of the premises.
FISCAL IMPACT
The Amendment with the Chamber is set for a six-month term. The Oceanside Chamber of Commerce revenue of $12,000 will be deposited into the PM R&L-City account 1101.4351.
|
Description |
Monthly Amount |
Total Revenue Over 6 Month Term |
Revenue Account |
|
Chamber of Commerce Rent Revenue |
$2,000 |
$12,000 |
PM Rents & Leases 1101.4351 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Candice Diaz, Property Agent I
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Amendment 1 to Property Lease Agreement