REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 22,2024
FROM
BEAHTA R. DAVIS, Director, Regional Parks Department
SUBJECT
Title
Amendment to Revenue Lease Agreement with Daryl Schendel for the Operation of Calico Photo Studio concession at Calico Ghost Town Regional Park
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 1 to Revenue Lease Agreement No. 20-221 with Daryl Schendel to continue to operate the Calico Photo Studio concession at Calico Ghost Town Regional Park is an exempt project under the California Environmental Quality Act Guidelines Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 1 to Revenue Lease Agreement No. 20-221 with Daryl Schendel to continue to operate the Calico Photo Studio concession at Calico Ghost Town Regional Park from February 1, 2025, through January 31, 2030, exercising the five-year option to extend the terms, in which the County will receive lease fees of no less than $18,000 over the five-year term (Four votes required).
3. Direct the Regional Parks Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Beahta R. Davis, Director, 387-2340)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of Amendment No. 1 (Amendment) to Revenue Lease Agreement No. 20-221 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). Over the five-year term of this Amendment, Daryl Schendel (Concessionaire) will pay minimum fees of $18,000 to the Regional Parks Department (Department) to continue to lease Building No. 11, known as Calico Photo Studio at Calico Ghost Town Regional Park (Park). The Concessionaire will pay fees of $300 per month for the term of the Lease or 8.5% of gross income, whichever is greater. The Concessionaire will also pay 3.5% of its monthly gross income as an advertising fee for promotion of the Park. The Department will match their advertising fee payment equal to a minimum of one and a half times the 3.5% collected. Adequate appropriation and revenue have been included in the Department’s 2024-25 budget and will be included in all future recommended budgets.
BACKGROUND INFORMATION
On April 21, 2020 (Item No. 62), the Board of Supervisors (Board) approved the Lease with the Concessionaire for the operation of the Park’s Calico Photo Studio from February 1, 2020, through January 31, 2025, with one five-year option to extend the term. The amendment will exercise the five-year option to extend the contract, and the County will receive lease fees of no less than $18,000 during this five-year term.
The Department operates and maintains nine regional parks, including Calico Ghost Town Regional Park, located in the City of Yermo, and provides for the rental of park property through Board approved fees.
The Amendment to the Lease was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Guidelines Section 15301 - Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have a significant effect on the environment.
Approval of this Lease aligns with the County and Chief Executive Officer goal to operate in a fiscally-responsible and business-like manner by allowing the Department to leverage its amenities and land to raise revenue to support park maintenance and development.
The Concessionaire also currently operates Lil’s Saloon, Calico Sweet Shoppe, Calico House Restaurant, Popcorn Wagon, and Calico Woodworks located in the Park.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on August 13, 2024; Real Estate Services (Brian Reed, Real Property Agent III, 387-5000) on August 30, 2024; Finance (Elias Duenas, Administrative Analyst, 387-4052) on September 4, 2024; County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on September 24, 2024.