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Belmont council pauses on new parking‑lot leases; seeks clearer terms and removal of cross‑default language
Summary
Council continued discussion of three proposed parking‑lot leases with Belmont Land to the June workshop, asking staff to renegotiate lease lengths, clarify termination language, and remove or clarify a cross‑default clause that would tie all leases together.
Council reviewed Belmont Land’s appraisal‑based lease proposal for three city‑used parking lots (Dwight Freddy Field, Imperial Mill Street, and the Crescent/Gant Park lot) and agreed to continue negotiations after staff and council raised several concerns.
Staff explained the appraisal methodology provided by Belmont Land and that the company initially proposed a rent calculated as a percentage of appraised land value, then offered an effective 50% concession. Using a lower percentage in the appraisal schedule produced a more modest rent figure that staff included in the recommended budget. Council members, including Mark and Jason, questioned the appraisal comparables and noted that other city parking leases (for example, property leased from Norfolk Southern and Alliance Real Estate) had significantly lower per‑square‑foot rates, though those agreements were signed in 2017 and may not reflect current market conditions.
Council also objected to a cross‑default provision in the draft leases (section 16D) that would permit the landlord to terminate all the city’s leases with Belmont Land if the city defaulted on any one lease; members said the clause could expose the city to disproportionate risk. Council asked staff and the city attorney to ask Belmont Land to remove or clarify the clause and to streamline and clarify termination notice language across the leases (council voiced a preference for clearer, longer‑term commitments for park properties used as public space).
Council noted a site‑specific concern: the Imperial Mill Street lot has a sinkhole and the landlord had asked to retain that site on a month‑to‑month basis while it investigates repairs. Council asked staff to press for longer initial terms where feasible (particularly for park parking used by the public) and to revisit appraisals or comps if necessary to ensure the city is paying a fair rate.
After discussion, council voted to continue the item to the June workshop and directed the city manager and city attorney to negotiate along the points identified: clarify or remove cross‑default language, extend term lengths where appropriate, and clean up termination provisions. Staff will return with revised draft leases for council consideration.
