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Consider adopting a resolution approving the amendment of agreement for sublease, option to purchase, and right of first refusal between the City of Vacaville Successor Agency and Vacaville Recreation Corporation to the City of Vacaville
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
RECOMMENDATION:
It is recommended that the Solano Consolidated Oversight Board (Board) adopt the resolution approving the amendment of agreement for sublease, option to purchase, and right of first refusal for the leased portion of 551 Davis Street.
DISCUSSION:
The Oversight Board must approve the Recognized Obligation Payment Schedule (ROPS) that must be submitted to the Department of Finance (DOF) for approval. The ROPS includes anticipated expenditures, including debt service, contracts, leases, and other agreements and obligations. One of the expenditures listed on the ROPS is Capitalized Lease payable to Wilmington Trust for Securitization of Vacaville Skating Center (see Attachment B, Item #33). This payment is a "pass-through" payment for the leased portion of 551 Davis Street, which has been used for City-operated gymnastics, volleyball, basketball and other programs/events (including birthday parties and Festival of Trees) since 2002.
The listed payment is based on a former Redevelopment Agency (RDA) agreement, option to purchase and right of first refusal for leasing approximately 1/3 of the building located at 551 Davis Street (Attachment C). The RDA and the City entered into a separate agreement (Attachment D) where the City agreed to assume all rights and responsibilities of the RDA under the lease agreement. This is listed in the City of Vacaville Annual Comprehensive Financial Report as a capital asset and liability to the City (Attachment E). The City has been paying the lease amount and all other required costs since 2002. However, in the event the City cannot pay the sublease, the RDA (now ...
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