Rio Vista business park scrutinized

By Reporter Staff
Posted: 06/11/2011 01:03:05 AM PDT
Updated: 06/11/2011 10:22:04 AM PDT

Updating old leases, adopting the recommended marketing strategy, and collecting rent on a regular basis at its business park could lessen budget problems for the city of Rio Vista, according to the Solano County grand jury.

In the latest of its 2010-11 reports, the grand jury also suggests the city with county and state officials to eliminate current restrictions on the resale of the property.

The Rio Vista Business Park is owned by the city and located on 109 acres of land which was the former Rio Vista Airport. The grand jury chose to investigate the city's use and lease of the park after receiving citizen complaints. What it found, after touring the facility and talking to city leaders, is a park in need of some attention, the jury reported.

"The parcels currently leased are being leased at rates established when the leases were originally written. Not updating current leases results in a loss of potential income for the city," the grand jury report states. "The parcels not leased are generating no income. The city of Rio Vista has budget problems that could be lessened by updating leases and marketing unleased parcels."

In addition, the jury noted that the city has a concept report for how to market and develop the park but is not following it.

The grand jury requested copies of all current leases for the business park and was provided with 17, the jury reported.

Some leases dated back to the mid-1990s had not been updated, one lease had no signature, and there was no copy of one lease on file with the city or tenant for at least one parcel.

In addition, between 1993 and 1998 the city entered into six leases with tenants they believed would serve as anchor companies for the business park. To attract these tenants, the city offered low rates, extended terms, and lucrative conditions.

"The grand jury's lease review indicated some rates offered were well below market value (ranging from $500 to $12,000 per year), and the terms were extended for as long as 49 years," the report noted. "In at least one case, the lease allowed the company to sublet space, and that tenant is currently subletting to as many as five entities and generating a profit on what amounts to be a subsidy by the city."

The city, the grand jury noted, has no policies and procedures in place for leasing at the park.

The grand jury also noted that redevelopment funds were to be used to develop the park but noted that much was spent on planning the facility by not to build units.

The grand jury reported it was was "unable to locate a marketing plan" for the park and that when members asked for a recorded parcel map of the area, the city "provided a hand-drawn, pieced-together sketch."

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