Regular Governing Body Meeting - Last Wednesday — Wed, Jul 29, 2026 · 9.u Request for Approval of Lease Agreement With Daisy Lay II, LLC, dba Ranch House, for the Lease of Land Adjacent to 2571 Cristos Rd. for Use as a Parking Lot in the Amount of $8,307.36 for the First Year With an Escalation of 2.5% Per Year. (Terry Lease, tjlease@santafenm.gov; Nina A. Nguyen, nanguyen@santafenm.gov) Committee Review: Quality of Life Committee: 07/22/2026 Finance Committee: 07/27/2026 Governing Body: 07/29/2026
Date: July 2, 2026 To: Mayor Michael J. Garcia, Quality of Life Committee, Finance Committee, and Governing Body Via: Andrea K. Phillips, Deputy City Manager __________ From: Terry Lease, Manager, Asset Development __________ Nina A. Nguyen, Project Manager, Asset Development __________ Subject: Lease Agreement Between City of Santa Fe and Daisy Lay II, LLC ITEM AND ISSUE: Asset Development respectfully requests your review and approval of the Lease Agreement (“Lease”) between City of Santa Fe (“City” or “Lessor”) and Daisy Lay II, LLC (“Lessee”), collectively the “Parties” for use of a portion of the City right-of-way within Camino Entrada for additional parking for patrons of Lessee’s restaurant; (Terry Lease, tjlease@santafenm.gov, (505) 629-2206, Nina A. Nguyen, nanguyen@santafenm.gov, (505) 819-1870) BACKGROUND AND SUMMARY: Lessee owns and operates the Ranch House Restaurant located at 2571 Cristos Rd., Santa Fe, NM. In 2012 the Parties entered into a lease agreement entitled Lease Agreement Between the City of Santa Fe and Daisy Lay II, LLC, Item #12-0041 (“2012 Lease”) for use of a portion of the City right-of-way within Camino Entrada, Santa Fe, NM, for additional parking for patrons of Lessee’s restaurant. The 2012 Lease terminated on January 27, 2022, and Lessee continued to use the City right-of-way in a month-to-month tenancy. The Parties agreed to enter into this new lease agreement to allow for Lessees continued use of the City right- of-way and to update the terms and conditions of the 2012 Lease.TL TL A s s e t D e v e l o p m e n t M e m o P a g e | 2 PRIOR APPROVALS AND SUPPORTING INFORMATION: FUNDING SOURCE: $$$$$ SOURCE/REVENUE: ☐Expense ☒Revenue Munis Org Name/Number: 2122800 Munis Object Name/Number: 460150 Budget Officer / Designee: Date: Budget Officer Comment/Exceptions: PROCUREMENT METHOD: The procurement method used was NMSA 1978, Section 13-1-98, Exempt Real Property is exempt from Procurement Chief Procurement Officer (CPO) / Designee: N/A - Exempt Date: CPO Comment/Exceptions: ASSOCIATED APPROVALS: IT Components included? ☐ Yes | ☒ No Approval: Title: Date: Comment/Exceptions: Vehicles included? ☐ Yes | ☒ No Approval: Title: Date: Comment/Exceptions: Construction to City Facilities, Furniture, and/or Fixtures included? ☐ Yes | ☒ No Approval: Title: Date: Comment/Exceptions: Is this an externally funded purchase? ☐ Yes | ☒ No If yes, what is the issuing agency: Approval: Title: Date: Comment/Exceptions:07/02/2026 A s s e t D e v e l o p m e n t M e m o P a g e | 3 Is this a Capital Asset or Project? ☐ Yes | ☒ No Project Ledger Number: Approval: Title: Date: Comment/Exceptions: ATTACHMENTS: Lease Agreement Certificate of Insurance Real Property Determination SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME: CONTACT (A/C, No): FAX E-MAIL ADDRESS: PRODUCER (A/C, No, Ext): PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANYPROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT ER OTH- STATUTE PER LIMITS(MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) POLICY EFF POLICY NUMBERTYPE OF INSURANCELTR INSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY6/15/2026Arthur J. Gallagher Risk Management Services, LLC 400 Kiva Court Sante Fe NM 87505Violeta Pavon505-467-6213violeta_pavon@ajg.comHartford Underwriters Insurance Company30104Daisy Lay LLC 2571 Cristos Road Santa Fe, NM 87507587442163AX2,000,000X1,000,0005,0002,000,0004,000,000XY34SBAAF5P6W3/16/20263/16/20274,000,000Liquor liability1,000,000Leased parking/licensing agreement per Exhibit "A" on file.City of Santa Fe P O Box 909 Santa Fe NM 87504-0909 USA General Services (continued): Prope I management rent collection, propertY. maintenance etc.) • Recycling/disposal/litter pickup service • Retreat and workshop planning, conduct, coordination, etc. • Security/armored car services • Shop welding/metal fabrication service • Software as a Service • Steam cleaning, high pressure washing, parts cleaning service • Studio photography service (does not include portrait painting) • Telephone interview service (conduct of survey using prescribed survey instrument) • Towing service • Traffic control services - including certified flaggers, barricade setup/removal, temporary signage, and traffic control plans (not involving permanent installations or design engineering) • Training - when offered as a regular course by an institution (such as a college or university) • Travel service - air, surface, water • Videotaping and recording service • Warehouse dry/cold storage rental service • Weather information service Professional Services are listed on the following pages. Signature:Email:Signature:Email:Terry Lease (Jul 2, 2026 15:39:39 MDT) Terry Leasetjlease@santafenm.govANDREA PHILLIPS (Jul 2, 2026 15:42:10 MDT)akphillips@santafenm.gov