CHAPTER 9
LEASE OF CITY PROPERTY

(Added by O-3900)

19.1.010 LONG-TERM LEASE OF CITY PROPERTY.

A)    The City Council may enter into a lease of City property for a term in excess of fifty-five (55) years but not exceeding ninety-nine (99) years pursuant to the procedures set forth in this Section. This Section is enacted pursuant to the following: (1) California Government Code Section 37380(b) which allows a charter city to establish alternate procedures thereto and exempts the city from the provisions of subsections (b)(2), (b)(3) and (b)(4) of Government Code Section 37380 and (2) Civil Code Section 719(e) which allows a charter city to establish alternate procedures and exempts the city from the provisions of subsections (b), (c), and (d) of Civil Code Section 719. Except with respect to leases in excess of fifty-five (55) years, the provisions of this Section shall not be deemed in any way to restrict the City’s authority to enter into other forms of leases.

B)    A lease in excess of fifty-five (55) years of property owned, held or controlled by the City may be authorized by the City Council in accordance with the following procedures:

1)    Any lease entered into pursuant to this Section shall be authorized by resolution of the City Council.

2)    The City shall not be required to engage in a competitive bid process for the award of such lease; provided, that at the time of adopting the resolution authorizing the lease the City Council makes a determination that entering the lease without engaging in a competitive bid process is in the best interests of the City.

3)    The City Council shall make a finding that the long-term lease is in the best interests of the City for economic and/or other articulated considerations of public benefit.

4)    Pursuant to California Government Code Section 37380(b)(1), the lease shall be subject to periodic review by the City and shall take into consideration the then market conditions. The City Council hereby establishes that the lease provisions which will periodically be reviewed, at a minimum, shall be those provisions specifying the rent to be paid pursuant to the lease. The periodic reviews shall occur in accordance with a schedule to be contained in the lease and may include such other provisions as may be indicated by the City Council at the time of authorizing the lease. The periodic review may be in the form of either an express review of the terms by the City Council or its designee, or in the form of a procedure contained in the lease for automatic adjustments of the terms, or reappraisals, in response to market conditions, without the necessity of a discretionary review by a City officer.