DATE: April 8, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: PROPERTY LEASE AGREEMENT WITH MANHEIM INVESTMENTS, INC.FOR THE PREMISES LOCATED AT 4691 CALLE JOVEN IN OCEANSIDE
RECOMMENDATION
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Staff recommends that the City Council approve a Property Lease Agreement with Manheim Investments, Inc. for the lease of City-owned property located at 4691 Calle Joven in Oceanside, for a term of five years, with two five-year extension options, for the purpose of operating an auto auction resale business, for a minimum total revenue of $5,373,228; and authorize the City Manager to execute the agreement upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
On May 24, 1996, the City of Oceanside ("City") entered into a CPI Property Lease Agreement with ADT Automotive, Inc., DBA San Diego Auto Auction, as predecessor in interest to Manheim Investments, Inc. ("Lessee") for lease of City-owned property located at 4691 Calle Joven ("Premises"). The CPI Property Lease Agreement was amended by Amendment 1 dated December 23, 1998, Amendment 2 dated June 20, 2012, Amendment 3 dated November 6, 2013, and Amendment 4 dated June 1, 2021 (collectively the "Existing Lease"). Amendment 4 extended the term of the Existing Lease through May 23, 2026, and provided Lessee with two additional 5-year extension options.
Currently, Lessee has requested to extend the term of the Existing Lease and, due to the number of amendments in the Existing Lease, City and Lessee are desirous of entering into a new agreement for a term of 5 years, with two 5-year extension options ("Agreement"). The Agreement, if approved, would replace the Existing Lease in its entirety, leaving the Existing Lease of no further force and effect as of May 1, 2026 (the "Effective Date"), of the new agreement ("Agreement").
The Premises consists of approximately 29 acres of improved real property with an asphalt-paved parking area utilized by Lessee to oper...
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