TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Lease Agreement with V & E Tree Service, Inc. for City-Owned Property Located at 2443 North Batavia Street (APN 374-621-03)
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2. Summary
V&E Tree Service, Inc. has leased a portion of the City-owned parcel at 2443 North Batavia Street since 2014. The Tenant requested use of the full parcel, prompting City staff to negotiate a new lease agreement. The agreement allows the Tenant, at its own expense, to remove the non-operational tank and related equipment. The proposed ten-year lease includes a 3 percent annual rental escalation and supports the City’s long-term plans for the site. If approved, the new lease would begin on October 1, 2026.
3. Recommended Action
recommendation
Approve the lease agreement with V&E Tree Service, Inc. for the rental of 2443 N Batavia Street, APN 374-621-03; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Enhance Economic Development and Achieve Fiscal Stability.
6. Discussion and Background
V&E Tree Service, Inc. (“Tenant”) has leased a portion of APN 374-621-03, located at 2443 North Batavia Street, since 2014. This parcel at one time contained City Well No. 1 and a 0.5-million-gallon steel tank, which are currently non-operational. Under the original agreement, the Tenant leased approximately half of the parcel for an annual rental amount of $19,800. The existing lease is set to expire in 2034.
The Tenant has requested use of the entire parcel. In response, City staff negotiated a new lease agreement that updates the terms related to lease duration, rental rates, and maintenance responsibilities. These updates reflect current market conditions and support responsible management of City-owned property. The City intends to retain the parcel for potential future Public Works Water Division needs.
The proposed agreement grants the Tenant use of the entire parcel. It includes provisions allowing the Tenant, at its own expense, to remove the existing non-operational water tank and associated equipment.
The new lease term is ten years and includes a new rental rate for the full parcel, with an offset for the estimated cost to remove the existing equipment. The agreement also includes a rental rate escalation of 3 percent per year. If approved, the agreement would take effect on October 1, 2026, and remain in effect through September 30, 2036. The proposed updates align with the City’s long-term objectives for the site.
7. ATTACHMENTS
• Lease Agreement with V&E Tree Service, Inc.