Title:
Title
Ground Lease Agreement for Robertson Park Sports Complex
End
FileID
File ID: 2019-00973
Location
Location: 3525 Norwood Avenue, District 2
Recommendation:
Recommendation
Pass a Motion: 1) approving the Robertson Park Sports Complex Ground Lease; and 2) authorizing the City Manager or City Manager’s designee to execute the lease.
Contact: Dana Mahaffey, Senior Planner, (916) 808-2762; Raymond Costantino, Park Planning and Development Services Manager, (916) 808-1941, Department of Youth, Parks, & Community Enrichment
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Ground Lease Agreement
Description/Analysis
Issue Detail: The Youth, Parks, & Community Enrichment Department (YPCE) has been leasing the Robertson Community Center to The Mutual Assistance Network (MAN) of Del Paso Heights for youth activities and adult recreation programs since 2016. MAN has requested to enter into a long-term lease with the City to construct and operate three baseball fields at Robertson Park to create the Del Paso Heights Sports Complex. The ultimate buildout of the Sports Complex requires that MAN rebuild the existing soccer and baseball field within the park and construct two new baseball fields on five vacant parcels of land abutting the park which were recently transferred to the City from the Redevelopment Agency Successor Agency to expand the park. The three fields will be available for use for soccer league games when baseball or softball is not in season.
The proposed development project is broken into phases: Phase 1 is the reconstruction of the existing baseball and soccer field, and Phase 2 is the construction of the two new ballfields. MAN anticipates that the Del Paso Heights Sports Complex will be home to local youth sports leagues and a regional attraction for tournaments that generate revenue to sustain the maintenance of the fields and operation of the youth programs.
In accordance with City Code section 3.68.110 C, the term of the Ground Lease is 20 years in consideration of a minimum $100,000 investment by MAN. This timeframe will allow MAN to recoup its investment based on the useful life of the improvements and the potential revenue from the Del Paso Heights Sports Complex operations. The Ground Lease only applies to the Phase 1 project for the existing ballfield. When MAN secures funding to build the two new fields, the Lease will be amended to add the additional property.
Under a separate Memorandum of Understanding, MAN is receiving a City grant in the amount of $350,000 to assist with the costs to renovate the ballfield for Phase 1 of the Lease. The additional land designated as Phase 2 contains some hazardous substances and the grant will be used to prepare the remediation plan.
MAN provides recreation and enrichment programs for youth and adults in Del Paso Heights. MAN leases the Robertson Park Community Center and operates three other resource centers; the Main Office at 811 Grand Avenue, Suite #A-3, the Firehouse Community Resource Center at 810 Grand Avenue, and the Johnston Community Center at 231 Eleanor Avenue.
Under the Park Preservation Act (CA Public Resources Code 5400 et seq), when developed park land is removed from public use, such as under a lease, replacement land and improvements are required. Under a separate staff report, the City is purchasing Chuckwagon Park from the Twin Rivers School District, this park is located within the same service as Robertson Park, and it is designated as the replacement park for this Lease. While the Sports Complex will benefit the public, MAN will be able to limit public use of the ballfields when they are not in use for MAN’s programs or by the sports leagues that will rent the fields from MAN. The remaining areas of Robertson Park (e.g., picnic area and skatepark) will remain open for public use.
Policy Considerations: The Lease agreement will implement YPCE’s Strategic Plan Direction 3.2: Plan, manage and regularly evaluate the delivery of programs, events and services. Specifically, (F) - Create operational and programming guidelines and evaluate leased facilities to ensure that programs and services are meeting City requirements and local needs; and Strategic Plan Direction 5.3; Diversify and improve funding and resources to enhance services. Specifically, (C) - Coordinate with City leaders to expand the Department’s financial resources to support youth development, park land and facilities, lifelong learning and recreation, and community enrichment.
Economic Impacts: The costs to renovate the existing ballfield is estimated at $670,555 and the City grant will pay for about half the cost. Once the Sports Complex is developed for use by youth leagues and baseball and softball tournaments, the increased activity could provide a stimulus for development of nearby vacant land. At the expiration or termination of this Lease, the City will own the improvements constructed and maintained by MAN. The term of this Lease at 20 years is based on City Code section 3.68.110 C, given that MAN will invest more than $100,000 to improve the City property. This length of time will provide for MAN to recoup its expenses based on the useful life of the improvements and the potential revenue from the Sports Complex operations.
Environmental Considerations: The project to approve a lease agreement for Phase 1 is exempt under California Environmental Quality Act Section 15304, Minor Alterations to Land, because the project consists of renovation of the existing ballfield without the removal of any mature trees.
Sustainability: The Lease is consistent with the City’s 2035 General Plan Goal ERC 2.2: Parks, Community and Recreation Facilities and Services, in that the agreement allows for the creative solution to provide neighborhood park and recreation facilities (e.g., provision of that reflect the unique character of the area; Building and improving parks and facilities to ensure safety for users and adjacent properties; provide parks and facilities for youth between the ages of 10 and 18 to ensure safe gathering places for their recreation; and, develop facilities (e.g., multi-field complexes) for a variety of organized sports.
Commission/Committee Action: None
Rationale for Recommendation: In December 2017, the City Council adopted the Citywide Youth Development Plan & Framework for Children and Youth Programs to guide the City in the design, operations, and evaluation of its children and youth programs. Through its own programs and strategic partnerships, the City of Sacramento will strive to offer all young people, regardless of background, the highest-quality youth development experiences.
Financial Considerations: In consideration for the construction and maintenance of the improvements to Robertson Park that MAN will undertake and payment for the irrigation costs, lieu of rent MAN will set aside a portion of the revenues it receives from operation of the Sports Complex to pay for routine maintenance to fund repairs and to maintain the premises in good condition during the term of the Lease.
Local Business Enterprise (LBE): Not applicable.