TO: Honorable Mayor and Members of the City Council
FROM: Robin Kampmann, City Engineer
SUBJECT:
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County of Tehama Lease for the Rio & Walnut Transfer Facility
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RECOMMENDED COUNCIL ACTION:
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Approve the Intergovernmental Agreement between the County of Tehama and the City of Red Bluff regarding lease of the Rio & Walnut Red Bluff Transit Transfer Center, and authorize the City Manager to execute the agreement and related documents.
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SUMMARY:
The Rio & Walnut Transit Center is the existing public transit facility located at 735 Rio Street in Red Bluff, adjacent to the southwest intersection of Rio and Walnut, near downtown Red Bluff and the historic Chinatown area. The facility is owned by the City of Red Bluff and is leased by the County. The proposed lease agreement is an updated agreement that proposes the property continued to be leased to the County for continued transit use, operation, maintenance, and future transit-related improvements.
The lease includes the transit facility, grounds, buildings, parking areas, landscaping, and associated infrastructure. Under the agreement, the County may make improvements that are reasonably necessary to support the established transit terminal, including improvements to restrooms, parking, sidewalks, landscaping, and related site features. The lease term runs through January 1, 2031, at a nominal annual rent of $1.00.
PREVIOUS COUNCIL ACTION:
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DISCUSSION:
The Rio & Walnut Transit Center serves as a logical intermodal transportation facility for Red Bluff and the surrounding region. The site is intended to accommodate and connect multiple transit services, including TRAX, Amtrak, RABA, and the new North State intercity bus route, providing a centralized point where local and regional services can meet and where passengers can transfer between modes. In that respect, the facility is more than a traditional bus stop or transfer point; it is intended to function as a coordinated mobility hub and regional gateway into the community.
The long-term vision for the site is to improve its usefulness not only for transit operations, but also as a visible and welcoming point of arrival into downtown Red Bluff. Planned improvements are intended to support the facility’s role as a public-facing gateway and to help attract travelers from the Interstate 5 corridor into downtown, where they can access local businesses, services, community destinations, and public amenities.
The County has programmed transit and transportation funding in the amount of $5,381,583, consisting of the following sources:
• State Transit Assistance (STA)
• State of Good Repair (SGR)
• Carbon Reduction Program (CRP)
• Affordable Housing and Sustainable Communities (AHSC)
• Transit and Intercity Rail Capital Program / Zero Emission Transit Capital Program (TIRCP/ZETCP)
The proposed lease agreement supports continued public transit use of a City-owned facility and allows the County to maintain and improve the Rio & Walnut Transit Center using restricted transit funding sources. The project represents a transit-focused capital investment intended to improve rider amenities, access, safety, site functionality, and long-term multimodal connectivity, while also strengthening the facility’s role as an intermodal gateway to Red Bluff, preparing the site for future charging infrastructure, and helping draw activity from the regional transportation network into the downtown core.
Because the facility improvements are tied to transit funding, the agreement also includes state and federal transit-related compliance provisions, including Federal Transit Administration-related clauses, Caltrans-connected requirements, prevailing wage compliance language where applicable, and other transportation contract requirements.
CITY FISCAL IMPACT:
COUNTY agrees to pay to City a fixed Annual Rental Sum for the use and occupancy of the Premises, as set forth below:
• The Annual Rental Sum for the period from June 30, 2026, through January 1, 2027, shall be $1.00.
• The Annual Rental Sum for the period from January 1, 2027, through January 1, 2028, shall be $1.00.
• The Annual Rental Sum for the period from January 1, 2028, through January 1, 2029, shall be $1.00.
• The Annual Rental Sum for the period from January 1, 2029, through January 1, 2030, shall be $1.00.
• The Annual Rental Sum for the period from January 1, 2030, through January 1, 2031, shall be $1.00.
The County shall also pay maintenance costs and utilities of and for the Premises during the term of this Agreement and all other sums expressly required to be paid by County pursuant to the terms of the Agreement.
ATTACHMENTS:
1. Rio and Walnut Lease Agreement