Title
Approve renewal of a one-year Lease Agreement, with non-standard provisions, with the Heritage Ranch Owners Association (HROA) for 25 acres of lakefront property at Nacimiento Reservoir; and, authorize the General Manager to execute the Lease Agreement. (ADDED VIA ADDENDUM)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Approve renewal of a one-year Lease Agreement, with non-standard provisions, with the Heritage Ranch Owners Association (HROA) for 25 acres of lakefront property at Nacimiento Reservoir; and, authorize the General Manager to execute the Lease Agreement.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (MCWRA) Board of Directors recommended the Board of Supervisors renew a lease agreement with a three-year term with the Heritage Ranch Owners Association (HROA) for 25 acres of lakefront property on August 27, 2012. However, that action was never taken to the MCWRA Board of Supervisors for approval. However, the HROA did continue to submit payment to the MCWRA. The monthly lease base rate remains at the 2012 base rate of $2,552.00. This is considered fair rent to the MCWRA based on . . .
The lease fee will be $2,552.00 a month. The fee was originally established by comparable market sales documented in three appraisals completed in 2007 and 2008. The capitalized income was discounted to reflect a downward adjustment in the market for the prior three years. At that time it was the best market data available.
The proposed 25-acre lease is located on MCWRA land on the south side of Nacimiento Reservoir on Snake Creek adjacent to property owned by Heritage Ranch. Heritage Ranch has leased the property from the Monterey County Water Resource Agency for the last four years and seeks to renew the lease for continued use of the property. The lease fee will be adjusted annually by the Cost of Living index over the term of the lease.
The Major poin...
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