The city of San Diego has reached a tentative agreement to lease the land it owns at the in Santee to the facility's owner, , according to city documents available online Friday.
Under the proposal -- to be presented to the City Council's Land Use and Housing Committee next Wednesday -- the city will lease 64.3 acres to TY Investment for 40 years. Most of the land, owned by the city since 1933, is along the banks of the San Diego River.
The company originally tried to buy the property outright, but committee members backed off last year in the face of opposition from environmentalists who didn't want part of the watershed to be turned over to private interests.
Company officials said the purchase was necessary to remain in business, after a property reassessment drove up costs.
In rejecting the sale in October, committee members asked city staff and the company to renegotiate the lease.
The proposed new deal calls for TY Investment to pay the city $150,000 per year for the first 20 years, with a rate in the second 20 years to be determined by future market value.
The rent will be partially offset in exchange for access to the acreage by city employees and members of the San Diego River Conservancy who, under the proposal, would have the right to develop a trail in the area.
-City News Service
