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THE CITY OF 8 <br /> CITY COUNCIL AGENDA REPORT <br /> PLEASANTON. <br /> July 19, 2022 <br /> Engineering <br /> TITLE: APPROVE A LEASE AGREEMENT WITH UNION PACIFIC RAILROAD TO <br /> UTILIZE A PORTION OF ITS PROPERTY AS A PARKING LOT BETWEEN <br /> ST MARY STREET AND DIVISION STREET <br /> SUMMARY <br /> The gravel parking lot between St Mary Street and Division Street, adjacent to the <br /> railroad corridor, is comprised of a City-owned parcel on the east side and property <br /> owned by Union Pacific Railroad (UPPR) on the west side. While the City installed <br /> gravel over both properties several years ago to create the parking lot and has been <br /> allowing public parking in the lot since the gravel was placed, there is no agreement <br /> between the City and UPPR allowing the City's use to encroach onto the UPPR <br /> property. Recently, UPPR contacted City staff stating that for the City to continue to <br /> allow parking on its property, the City must enter a lease agreement with UPPR for <br /> $5,000 annually, with a three percent annual increase. <br /> The parking area extends 30 feet into UPPR's property. As currently laid out, a total of <br /> 22 parking stalls encroach into the UPPR property. Given the value of downtown <br /> parking, staff recommends City Council authorize the City Manager to enter into the <br /> lease agreement. <br /> RECOMMENDATION <br /> 1. Approve a lease agreement with Union Pacific Railroad for use of the parcel for the <br /> St Mary Street parking lot. <br /> 2. Authorize the City Manager to execute the agreement. <br /> FINANCIAL STATEMENT <br /> There is an annual financial impact of $5,000, plus a three percent annual increase, for <br /> the proposed lease agreement with UPPR for use of its property. Additionally, the lease <br /> agreement allows UPRR to redetermine the fixed rent once every three years. Upon <br /> approval, the annual lease payments will begin FY 2022/23. Payment for the first year <br /> would be made from the General Fund and will require a budget allocation. Subsequent <br /> years will be budgeted through the biennial budget process. <br />