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Board hears about right‑of‑way lease clause that lenders say is making a landmark property uninsurable
Summary
A board member raised concerns about a right-of-way lease on a designated property that includes a clause allowing the city to remove an encroachment with 10 days' notice; the city attorney said staff is working with the owner and their agent to find a solution and that the board lacks authority over leases.
Chelsea Castellano raised a matter Feb. 5 about a right-of-way lease affecting a landmark property (referred to in discussion as "213020 Second Street" in the meeting transcript) that the owner says is making the property uninsurable.
Castellano read from an email describing the lease language: “the lease agreement includes language stating that the city has the right to destroy the section of the landmark property in the right of way without cause and with only 10 days notice.” She said the clause…
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