|
|
STRATEGIC OUTCOMES |
ACTION |
|
Department: |
☐ Safe & Prosperous |
☐ Motion |
|
City Administration |
☐ Active & Appealing |
☐ Resolution |
|
|
☒ Respected & Responsible |
☐ Ordinance - Introduction |
|
Division: |
☐ Connected & Engaged |
☒ Ordinance - Adoption |
|
Administration |
☐ Unique & Creative |
☐ Public Hearing |
TITLE:
title
Lease: Keithly-Williams Seeds, Inc.
end
SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize a 5-year lease with Keithly-Williams Seeds, Inc. for the 12.39 acres and the Associated Citrus Packers, Inc. building recently acquired by the City. (City Administration) (Jay Simonton)
end
STRATEGIC OUTCOME:
This item furthers City Council’s strategic outcome of Respected and Responsible as the City is generating a return through both rent and improvements to the property.
REPORT:
The City of Yuma (“City”) acquired the yellow-shaded area (APN 633-52-070), consisting of 12.39 acres of real property (the “Property”), from the Associated Citrus Packers, Inc. in October 2023. Keithly-Williams Seeds, Inc. (“Tenant”) seeks to lease the Property from the City for a period of five years, with an option to extend the lease for a second five-year term.
Tenant proposes to pay the City $54,000.00 in rent over the first five-year term and $90,000.00 in rent upon renewal of the lease for a second five-year term. Tenant also commits to (1) make improvements to the Property at a significant expense to Tenant of no less than $65,000.00, and (2) to remove the majority of the concrete footprint, including but not limited to flatwork, footings of preexisting buildings, parking and loading areas from the former Associated Citrus Packers packing and shipping site. Once installed, Tenant agrees that all improvements to the Property shall belong to the City at the termination of the Lease without reimbursement or credit from the City.
Under the terms of the Lease, Tenant will secure all necessary permits to operate a crushing operation on the Property to crush and haul away the existing concrete material. Tenant also intends to rehabilitate the sole building on the Property (bordered in red) for use as a thrift store or taxidermy shop.
FISCAL REQUIREMENTS:
|
CITY FUNDS: |
$ 0.00
|
BUDGETED: |
$ 0.00
|
|
STATE FUNDS: |
$ 0.00
|
AVAILABLE TO TRANSFER: |
$ 0.00
|
|
FEDERAL FUNDS: |
$ 0.00
|
IN CONTINGENCY: |
$ 0.00
|
|
OTHER SOURCES: |
$ 0.00
|
FUNDING: ACCOUNT/FUND #/CIP
-
|
|
TOTAL |
$ 0.00
|
FISCAL IMPACT STATEMENT:
The new lease agreement will bring new rental revenues to the City and increase the value and future potential of the Property for the City.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☒ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
|
Acting City Administrator: |
Date: |
|
John D. Simonton |
8/26/2025 |
|
Reviewed by City Attorney: |
Date: |
|
Richard W. Files |
8/25/2025 |