Edison Properties (Lease and Sub Lease)
• Auto square - $1.3B annual sales and $12.5M sales tax revenue
• Edison no longer allows private businesses to use its property for auto
storage! Only City can do it?
• Last five year agreement expired on 10/31/2016
• Extended for one more year – till 10/31/2017
• Why didn’t renew last year?
• Why it took so long? Just five days before expiration coming to the council?
• City assumes this is a done deal? Are you looking for resident input seriously?
• Or, is it another forgone conclusion, a formality and waste of our time?
• Was there any insurance claims in the past?
• How much did it cost to the city?
Edison Properties – Continued….
• $290K annually for maintenance and security
• $1.6M Municipal improvement fund - 0.754% APY!
• 5% APY -> $80K, 3yrs -> $240K!
• 0.754% APY -> 12K X 3 = $36K, $200K loss?
• Studbaker storage facility
• 2118 Parking spaces – Occupancy rate?
• $218K to $245K Lease over five years
• $1.3M improvement costs
• $26 $26 $26 $10 $10 -> Avg $20/slot/month
• Delamo storage facility
• 1384 Parking spaces – Occupancy rate?
• $240K to $270K Lease,
• $330K improvement costs
• $21 $22 $22 $16 $16 -> Avg $20/slot/month
Edison Properties - Reality Check….
• The projections are based on 100% occupancy.
• Is this realistic?
• Will the per slot fee increase if the occupancy goes down?
• If only half of the spaces are occupied, the revenue will be 50% of the projected with
• Past occupancy rates and the net loss/profit to the City
• How will Cerritos College TUP impact the occupancy rate at these two
• $35,000/month for 1000 slots -> $35/slot/month
• Maintenance and utilities are dealer responsibility.
• Why NOT Lighting charges? Electricity bill?
• $0.50/slot/month – Administrative costs?
• Net loss?