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DATE: August 1, 2006
TO: Board of Supervisors
SUBJECT: LEASE AGREEMENT WITH THE JULIAN HISTORICAL SOCIETY AT JULIAN PIONEER PARK FOR A TRANSPORTATION MUSEUM

SUMMARY:
Overview
The Julian Historical Society has been working on the development and enhancement of a 1.5-acre parcel of San Diego County Parks and Recreation property within the Julian Historic District, known as Julian Pioneer Park, to enable local residents and tourists to celebrate Julian’s history, since 1996. In that time, the Society secured Park Land Development Ordinance funding and a Community Enhancement grant and constructed a Transportation Museum. The park is now complete and has been accepted by the Department of Parks and Recreation.

The Board is requested to authorize the execution of a no-rent, two-year lease for the museum building with the Julian Historical Society, with rights to extend the lease for up to 10 years thereafter. The Society will lease the building from the County for the display of restored antique vehicles.

Recommendation(s)
SUPERVISOR JACOB:

  1. Find, in accordance with Section 15302 of the California Environmental Quality Act (CEQA) Guidelines, that the proposed lease is categorically exempt from the provisions of CEQA as it is the lease of a new, small structure not exceeding 2,500 square feet in size.
  2. Waive Board Policy F-51 pertaining to Department of General Services' responsibility for revenue leasing of County real property.
  3. Approve and authorize the Director of the Department of General Services to execute four copies of the lease agreement.
  4. Authorize the Director of the Department of General Services to exercise the options to extend the lease prior to its expiration, if appropriate.

Fiscal Impact
No funding or staff years are required for this proposal. Utilities and custodial services at the newly constructed building will be the responsibility of the Society and the minimal maintenance required will be provided by the Society up to $2,000 per year per repair.

Business Impact Statement
N/A

Advisory Board Statement
N/A

BACKGROUND:
The Julian Historical Society has been working on the development and enhancement of a 1.5-acre parcel of San Diego County Parks and Recreation property within the Julian Historic District, known as Julian Pioneer Park, to enable local residents and tourists to celebrate Julian’s history, since 1996. The plan for the park includes an integrated use of four exhibit buildings: the Julian Pioneer Museum, the GrossKoph House Museum, the Julian Historical Museum (located in the old Witch Creek School House), and the newly constructed 972-square-foot Transportation Museum. Between 1997 and the present, the Julian Historical Society obtained Park Land Development Ordinance funding ($50,000) and a Community Enhancement grant ($50,000) for construction of the Transportation Museum building, located at 2811B Washington Street in Julian. Now that construction is complete, the Society desires to execute a deed for the building to the County, then lease back the building from the County to display restored antique vehicles.

A lease agreement has been negotiated with the Society with the following key provisions:

  • The Society will execute a deed transferring title for the building to the County.
  • The Society will pay no rent during the two-year initial term. However, the Society will provide maintenance and repairs up to a $2,000 per year per repair.
  • The building will be available for community meetings on a reservation basis at the discretion of the Society. Since the building is located in a County Park, the Society will abide by the Department of Parks and Recreation’s regulations for allowing community groups to use park facilities.
  • Two, five-year options to extend the lease term are included, at a rental rate to be determined 60 days prior to the first and second extension periods. The decision to extend the lease and the rental rate will be determined at the discretion of the County’s Lease Administrator, the Director of the Department of General Services.
  • Termination rights for the County and the Society are included.

The lease provisions with the Society for the museum building are substantially the same as those in the lease agreement between the County and the Society for the Witch Creek School building that was approved by the Board on November 30, 2004. The transportation museum will be an important cultural attraction in Julian and is worthy of the initial two-year support of the County as a no-rent lease, and therefore, a waiver of Board Policy F-51, County Real Property Asset Management, calling for the highest net return on property leased out by the County, is requested.

Mandatory Compliance
The proposed lease meets the requirements of the following laws, ordinances, and regulations governing the lease of County real property:

  1. San Diego County Administrative Code, Section 67. The proposed lease complies with Section 67 of the San Diego County Administrative Code, which prohibits the County from contracting with persons employed by the County or businesses where persons employed by the County, either currently or within the past twelve months, serve as officers, principals, partners, or shareholders.
  2. The California Environmental Quality Act (CEQA). The proposed lease is categorically exempt from environmental assessment requirements pursuant to Section 15302 of the CEQA Guidelines as it is the lease of a new, small structure not exceeding 2,500 square feet in size.

Linkage to the County of San Diego Strategic Plan
This requested action supports the Safe and Livable Communities Initiative of the County’s 2005-10 Strategic Plan. This action contributes to an improved local environment and will provide museum facilities to local citizens to enhance the quality of life in the Julian community.

Respectfully submitted,



DIANNE JACOB
Supervisor, District Two