HomeMy WebLinkAboutAGENDA REPORT 1992 0304 CC REG ITEM 11D • //y. 11,2/ 7-2C, „2_
•
CCS
ITEM H. V,
toe09 _ '� 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864
�oqU
AEU_�J
CALIFCRNIA
;y ou cilMCoting
1990
ACTION: Z n .
MEMORANDUM
BW-41,
TO: Honorable City Council
FROM: Mary K. Lindley, Assistant to the City ManagerO\
DATE: February 26, 1992 (For 3/4 Council Meeting)
SUBJECT: Consider Allocation of Funds for Interest Payments
on "Non Rail-Related" Property
Background
On September 13 , 1991, Council approved the agreement between the
City and the Ventura County Transportation Commission for a four
year purchase option and a fifth year right of first refusal to
purchase approximately 231 ,000 square feet of property along High
Street. Included in the option agreement, the City shall be
responsible for the quarterly interest payments to Southern Pacific
on the Note and Deed of Trust it holds on the aforementioned
property. The quarterly interest payments in the amount of $14 ,000
($42,000 for FY 1991/92) must be paid by the City on the 30th day
of December 1991, March and June 1992.
As the property manager of the "non rail-related" property
identified in the option agreement, the City shall maintain the
property and collect the rental payments on the various leases.
City staff is currently working with VCTC and Southern Pacific to
apportion rent payments and complete transfer of the property
management responsibilities to the City. Staff anticipates that by
the end of Fiscal Year 1991/92 the rental income on the property
will total approximately $30,000. The revenue received from the
rental payments will be allocated to cover the quarterly interest
payments to Southern Pacific. Since total interest payments will
exceed rental income, staff proposes that $12,000 from the General
Fund Reserves be allocated to cover the remaining interest balance.
Thomas Volk & Associates is currently evaluating the lease
agreements and rental values for the property, and staff
anticipates that the final report will recommend increasing rents
significantly which would result in additional rental income. The
PAUL W.LAWRASON JR. JOHN E WOZNIAK SCOTT MONTGOMERY BERNARDO M.PEREZ ROY E. TALLEY JR.
Mayor Mayor Pro Tern Councilmember Councilmember Councilmember
Printed On Recycled Paper
Interest Payments on Rail Property
February 26 , 1992
Page 2
increase in revenue could be sufficient to cover the total interest
payment until the City take action on the purchase of the property.
Recommendation
Staff recommends that Council allocate $42,000 ($30 ,000 from "non
rail-related" rental income and $12 ,000 from General Fund Reserves)
for Fiscal Year 1991/92 for quarterly interest payments to Southern
Pacific.