Subject: APPROVAL OF PARKING LOT LEASE AGREEMENT
COUNCIL DISTRICT: 3
Approval of a Parking Lot Lease Agreement between the City of San Jose and Boston Properties (dba BP Almaden Associates, LLP) in the amount of $240,000 ($20,000 per month) for the Almaden/Woz Way parking lot, located at 282 Almaden Boulevard. The proposed Agreement shall commence on December 23, 2001 and will expire December 31, 2002.
The City currently leases the Almaden/Woz Way parking lot owned by BP Almaden Associates, LLP, at 282 Almaden Boulevard. This lease was approved by the City Council in December 1998 with Vine Street Properties I and II, the previous owners of the property. The current agreement, which has been assumed by the new property owner – who is the developer of the three-tower Almaden Plaza office high-rise project, is set to expire on December 23, 2001.
The lot supports parking for the Convention Center, Center for the Performing Arts, San Jose Main Library patrons and staff, and surrounding businesses. Currently, the property owner holds land-use entitlements to build the three-tower project, yet does not expect to begin construction on the project until the end of 2002. Therefore, a new parking lot lease for the site is being sought with the new property owner.
The 374 space Almaden/Woz Way parking lot primarily serves the area near the Convention Center, and supports a parking validation program for the Main Library. The term of the lease will be for approximately one (1) year beginning December 23, 2001 and expiring December 31, 2002. The property owner will have the option of extending the lease month-to-month at the same rate thereafter.
Under the new agreement, the cost to lease the 374 space parking lot is $240,000 ($20,000 per month). This cost does not include utilities. The previous annual rent rate was $182,832 ($15,236 per month). The new lease agreement restricts the use of the lot exclusively to parking and will give either party the option to mutually terminate the agreement by providing 45 days written notice, should the developer elect to begin construction of the office tower project before the expiration of the lease, December 31, 2002.
This agreement has been coordinated with the City Attorney’s Office.
Not Applicable.
Currently, the average monthly net revenues of the Almaden/Woz Way parking lot, which are stable despite the economic downturn, are approximately $13,000 at the current rental rate of $15,236 per month. The rent increase of $4,764 would reduce these revenues, resulting in a new average monthly net revenue of approximately $8,500.
Fund: General Purpose Parking Fund-533
Amount: $5,841,039
Budget Document: 2001-2002 Adopted Operating Budget, Page 791
WAYNE K. TANDA
Director of Transportation