Department of Utilities
Reference: Brannan Lease of Ken Mitchell
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: March 4, 2026
PURPOSE
Requesting City Council’s approval of a resolution authorizing the City Manager to execute the First Amendment to a Lease Agreement between the City and Brannan Sand and Gravel Company, LLC.
BACKGROUND
The City purchased the portions of property subject to the lease agreement in 2020 from a subsidiary of Brannan. Compensation for the property was in the form of a lease for a seven year period. The purchase price divided by seven years equates to a monthly rent of approximately $19,000 per month.
Brannan performs ready mixed concrete activities, salt squeegee activities and subleases a portion of the property to a precast concrete company. Brannan wishes to continue such operations at the property. The City of Brighton has future plans for the property as a surface water treatment plant to support continued growth in the City. Design for said plant wouldn’t likely begin until 2045, with construction starting several years after that. To put the property to beneficial use and generate revenue for the City, Brannan and Brighton have negotiated a lease amendment that is mutually beneficial.
The First Amendment to the Lease Agreement provides for a six year initial term, with three optional extensions of three years each. From the date of execution of the First Amendment until August 17, 2026 (expiration of original lease term), rent will be $14,734/month. This reduced rent is to ensure the compensation for the original property purchase. Beginning August 17, 2027, rent will be $34,000/month or more than $400,000 in annual revenue for the City. Rent will also increase by 2.5% for each successive renewal term, if exercised.
All other terms of the original lease remain in force, including the requirement for Brannan to remove all private property from the site prior to the end of the lease.
FINANCIAL IMPACT
The mutually beneficial lease of this property will create revenue for the General Fund in excess of $400,000 annually.
STAFF RECOMMENDATION
City staff recommend approval of the resolution as drafted, authorizing the City Manager to execute the First Amendment to the Lease Agreement.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• First Amendment to Lease Agreement
• PowerPoint presentation