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HomeMy WebLinkAboutSan Diego Gas & Electric Company; 1975-11-10;. L ,- ., . . 1238 - “- . . LEASE THIS LEASE, made and entered into as of the 10th day of November I 1g75 I by and between SAN DIEGO GAS & ELECTRIC COMPANY, a California corporation, hereinafter called “Lessor", and the CITY OF CARLSBAD, CALIFORNIA, a municipal corporation, hereinafter called “Lessee", WITNESSETH: WHEREAS, In 1971 Lessor requested specific plan approval for certain public utility operations in the City of Carlsbad; and WHEREAS, In the course of processing said request Lessor offered to make a portion of the property covered by the specific plan available to the Lessee for park and recreational purposes, and WHEREAS, Said offer was accepted by Lessee and incorpor-. ated in Ordinance No. 9279 which approved the specific plan as a condition thereof; and WHEREAS, In accordance with Section 2, Condition No. 3, of Ordinance No. 9279, Lessor and Lessee have resolved the details regarding the lease of certain hereinafter described real property; NOW, THEREFORE, in consideration of the performance of the terms and conditions hereof the parties agree as follows: 1. Leased Premises. Lessor does hereby lease to Lessee 1239 -- those certain premises located in the City of Carlsbad, State of California, containing approximately ninety-one (91) acres as generally shown on the map marked Exhibit "A", attached hereto and made a part hereof. Lessor shall survey the premises within ninety (90) days of the execution of this lease and shall furnish Lessee with a legal description to be attached hereto as Exhibit 'B" and made a part hereof. 2. Use. The leased premises may be used by Lessee for park and recreation purposes which shall be supervised to the same extent as other comparable properties owned by Lessee and used for the same purpose. Lessee shall not use the leased premises for any commercial or business purpose that does not reasonably relate to the use of the premises for park and recreation purposes. 3. Term. The term of this lease shall be for a period of sixty (60) years commencing on thelothday of November I 1975 , and ending on the9th day of November , 2035 . 4. Renewal. Within ninety (90) days from the expiration of the initial sixty (60) year term, and each succeeding term thereafter, the parties may by written mutual agreement renew this lease for three (3) additional periods, each consisting of a ten (10) year term, plus one (1) additional term of nine (9) years. In no event shall the cumulative terms exceed ninety-nine (99) years. 5. Additional Construction. This lease is made upon the express condition that the leased premises will be available for 2. C 1240 - - . . . : , . - use by Lessor at any and all times for the repair or maintenance of existing and future facilities, as well as all other operations necessary in connection with its public utility operations. It is understood that Lessor may construct additional electrical trans- mission lines and/or other utility lines upon the leased premises and reserves the right to accomplish said construction. Lessor shall make reasonable efforts to coordinate such activities with Lessee to minimize the interference with the Lessee's use of the premi,ses. 6. Rent. Lessee agrees to pay Lessor rent based on the amount of one half of the taxes assessed against the leased premises and paid by Lessor, but in no case shall the amount paid by the City exceed the sum of fourteen thousand dollars ($14,000) annually. Lessee and Lessor shall take all reasonable steps to relieve Lessor of the real property tax liability on the leased premises for the term of the lease or any renewal as herein provided. The obligation of Lessee to pay rent shall not commence until five (5) years after execution of this lease or until Lessee has adopted a plan of develop- ment for the premises and obtained all permits necessary to accomplish the development, whichever occurs later. 7. Improvements. Lessee shall have the right to construct improvements upon the leased premises. Lessee agrees to consult with Lessor regarding any proposed improvements prior to the commencement of construction. No improvements, including grading or structures of any type, shall interfere with Lessors public utility facilities or operations on the leased premises. Lessor may relocate in a mutually agreeable manner any such improvement at Lessor's expense. Lessor will take every reasonable means to avoid relocation of Lessee's improvements. Upon termination of this lease, after receipt of a written demand from Lessor, Lessee shall remove all improvements 3. :: 1241 - - . . : . ' within ninety (90) days at Lessee's expense. 8. Protection and Patrols. Lessee agrees to police, regulate, and control the entry and activities in and upon the leased premises to the same extent as other comparable property owned by Lessee. In addition, Lessee will take reasonable steps to protect all Lessor-owned property surrounding or adjacent to the leased premises and exterior thereto so as to minimize any and all disturbances and damages, including the possibility of damage to property and injuries to persons incident to the use of said premises by any person entering thereon. Said protection shall be consistent with the protection given to other private property in the City of Carlsbad. 9. Waste. Lessee shall not commit, suffer, nor permit any waste, nuisances, or unlawful acts on the leased premises, and shall at all times maintain the same in a clean and sanitary con- dition in compliance with all applicable rules, laws, regulations, and ordinances respecting health and safety of the City of Carlsbad and County of San Diego, and the State of California. 10. Right of Entry. Lessor reserves the right to enter upon the leased premises at any time for the purpose of viewing, patroling and inspecting the same to see if Lessee is faithfully complying with the terms and conditions of this lease. 11. Rights of Lessee. Lessee shall have no rights nor acquire any interest in or to the leased premises other than as provided in this lease and as a lessee and tenant thereof. 12. Default. Should default be made in the performance of any of the terms and conditions of this lease and such default shall continue for sixty (60) days after Lessee has been notified 4. ‘1 :. ’ ‘, , .* ., : . 1242 * - in writing of such default, then Lessor may re-enter, take possession of said premises, and remove any and all persons and property of Lessee therefrom. 13. Assignment. Lessee shall not assign this lease nor sublease the leased premises except upon the written consent of Lessor which shall not be unreasonably withheld. Subject to the terms and provisions of this lease, Lessee may make any joint use agreement for the use or improvement of the premises and may grant permits, licenses or priviledges to any agency, person or partner- ship to enter upon and/or use any or all of the leased premises, upon terms and conditions as the Lessee deems necessary or desirable. 14. Waiver. Any waiver by Lessor of any breach of one or more of the terms, covenants, and conditions of this lease shall not be a waiver of any subsequent or other breach of the same, or of any other term or condition hereof. 15. Indemnity. Lessee hereby agrees to indemnity, save and hold Lessor harmless from and against any and all demands, claims, suits, loss, damage, injury, resulting from any act or omission of Lessee, its employees, agents, permittees, invitees, or other persons-upon the leased premises with or without the consent of Lessee to the person or persons, or property or proper- ties of any person, including injury to or death of any person in any way arising from use and occupancy of the leased premises by Lessee, its agents, servants, employees, or invitees, whether actual or implied by law. It is the mutual intention and agreement of the parties that the foregoing indemnity provisions shall extend to any and 5. . . 1243 L all damages suffered by Lessor to its property adjacent to the leased premises or injury to or death of any person upon the ad- jacent property in any way arising from the use or occupancy of the leased premises, occasioned by the negligent, willful, or intentional acts or omissions of any persons using and who may be in or upon the leased premises. 16. Liability Protection. Lessee agrees to include the leased property in the liability protection program in use for other property owned by.Lessee. 17. Notices. Notices to be given from or to either party may be addressed as follows: a. Lessor at 101 Ash Street, San Diego, California 92101. b. Lessee at 1200 Elm Avenue, Carlsbad, California 92008. Notices shall be deemed given hereunder when placed by either party in the United States mail, postage prepaid, certified, and properly addressed to the other. 18. Ordinance No. 9279, Section 2, 13-B, l-3. It is agreed that construction of park improvements, under Paragraph 7 of this lease, are not considered development of Lessor's property as specified in Ordinance No. 9279, Section 2, 13-B, 1-3. 19. Existing Aqricultural Lease. Lessee recognizes that a part of the park lease area is presently being leased by Lessor for agricultural purposes. Lessee agrees that Lessor may continue to lease this area for agricultural purposes and will not require the cancellation until Lessee's plans to develop the leased premises for its intended park use are ready to be implemented. Prior to 6. i ‘L. . . ? , ,; . 1 ,' . .' 1244 -' . implementation, Lessee agrees to provide Lessor with one year's advance notice so that Lessor can arrange the termination of the agricultural use. IN WITNESS WHEREOF, the parties have individually executed and caused this lease to be executed for and on behalf of each by their respective officers or agents as of the day and year first above written. SAN D GO GAS & ELECTRIC COMPANY, a Cal ornia corporation Senior Vice President LESSOR CITY OF CARLSBAD, a Municipal State of City Attorney BY ROBERT C. FRAZEE, Mayor LESSEE LEWIS L. CHASE, Vice Mayer 7. - 70 449 CA (5.73) t Corporation) 3245 I STATE OF CALIFORNIA COUNTY OF .$b q*A “’ f On AArd 97, /97L State, personaliy’appe before me, the undersigned, a Notary Public in and for said . w known to me to be the f k nown to me to be Secretary of the corporation that executed the within Instrument, kn,~n to me to be the persons who executed the within 2 Instrument on behalf of the corporation therein named, and ;5 acknowledged to me that such corporation executed the within m instrument pursuant to its by-laws or a resolution of its board of directors. WITNESS my hand and ofiicial seal. Signature= (This area for official notarial real) -.-- -__ -- EXHIBIT B LEGAL DESCRIPTIOW OF HUB PARK SITE CITY OF CARLSBAD That portion of Lots !'Fr! and "Hn of Ranch0 Agua Hadfonda, in the City of Carlsbad, County of San Diego, State of California, according to Partition Map thereof No. 823, filed In Eh@ office of the County Recorder of aald County, November 16, 1896, described aa follows: Beginning at the corner aommon to Lota ""F", "H" and "I" of aaid Raneho Agua Hedionda; thence along the Northerly line of aald Lot "Pw South 86* 52' 04” East (rmord South 87* 23' 24” East per Record of Survey No. 79381, 1456.25 feet; thencre leavring said line South 22* 50' 04" West, 1273.28 feet to the beginning of a 949.00 foot radius tangent curve concave Northwesterly; thence Southwesterly along the arc of said curve through a central angle of 18* 39’ 20r’, a distance of 309.00 feet; thence non-tangent North 81r" 52' 43” West, 2517.07 feet; thence f3orth 27O 23' 43”’ West, 392.39 feet; thence North 84* 52' 43” West, 453.19 feet; thence Garth 07* 51' 43’” Webt, 259.19 feet; thence North 89* 26' 05" West, 404.67 feet; thence North 16* 24' 38?' West, 440 feet more or less to the mean high tide line of Agua Hedionda upper Lagoon; thenae Southeasterly, Hortheaaterly and Northwesterly along said mean high tide line to the Northeasterly line of said Lot rrH" ; thence along said line South 64* 01' 41" East, 275 feet more or less to the POIMT OF BEOINNIHQ. SAN DIEGO GAS & ELECTRIC P. 0 BOX 1831 SAN DIEGO. CALIFORNIA COMPANY <- 92112 (714) 232.4252 January 27, 1976 Mr. Paul D. Bussey City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Dear Mr. Bussey: \,, : ‘\ \+- .J FILE NO. This letter concerns the lease between the City of Carlsbad and San Diego Gas & Electric Company for Park adjacent to the south shore of the Aqua Hedionda Lagoon. In accordance with paragraph one of the lease, enclosed in triplicate is the legal description marked Exhibit B and the boundary survey marked Exhibit B-l of the park site. Please attach the exhibits to your lease agreement; copies of these exhibits have been attached to the lease in our files. If I can be of further assistance, please let me know. Land Management Supervisor RHB:sfb Enclosures AN INVESTOR-OWNED CORPORATION COUNTY OF SAN DIEGO August 20, 1976 city of Carlsbad 1200 Elm Ave. CarLsbad, Calif. 92008 HARLEY F. BLOOM RECORDER 1222 FIRST AVENUE P.O. BOX 1750 SAN DIEGO. CALIFORNIA 92112 (714) 236-2695 JOHN CLAGUE CHIEF DEPUTY we are retUrdng UNRECORDED ~@se Agreement naming city nf C'a1sba.d and SDG &E with your remittance of $ ,NO Fee Requjrefi Check M. 0. 1r-t order to record please have the s.i_qn;i.ture for SDG F; E acknowledged. Recording Fees are $3.00 for the first page, plus $1.00 for each additional page of each document. NOTICE: SHOW NAME AND ADDRESS ON DO T OR RETURN BY MAIL. HARLEY F. BLOOM, County Recorder Nancy McFarlane Form 4 12-75 August 26, 1976 Marion Fujimoto, Secretary- to tha President San Diego Gas & Electric Company lQ1 Ash Street San Diego, $aliCornia 92101 Dear Marion, Enclosed please find the originat Agreement between the City of Carlsbad and San Diego Gas & Electric Company regarding "Hub Park" in the City of Cartsbad. As you will recall in our conversation yesterday, we discussed the fact that in the Cityts attempt to record this Agreement, it was mailad back to the City Clerk's Office from the County Recorder with a request that Mr, Morris' (Robert) signature be notarized. Please have one of .ths Rotaries acknowledge the signature of Mr. Morris on the Acknowledgment Form attached by the County Recorder, after which the Agreement together with our letter to the County Record-cr. which is enclosed, may be mailed to the County Recorder in the, enclosed salf- addressed envelope. Thank you for your assistance and cooperation and, in advance* for your expeditious.transmittal of this Agree- ment to the County Recorder since the time of recording is most important. Sincerely, NORA K. BARDIRER Deputy City Clerk \ w Enclosures (3) ,.. -- DATE: TO: ' FROM: SUBJECT: The City of Carlsbad has a lease executed in August, 1976, . DECEMBER 30, 1977 CITY MANAGER Assistant City Manager HUB PARK LEASE with the SanDiego Gas and Electric Company. This lease covers 91 acres known as "Hub Park" which is on the south side of Agua Hedionda Lagoon, east of I-5. As a condition of the lease, the City agreed to pay rent based on the amount of one-half of the taxes assessed against the leased premises and paid by lessor. In no ' case shall the amount paid by the City exceed the sum of $14,000 annually. As a further stipulation in the agree- ment or lease, the lessee and.lessor agree to take all reasonable steps to relieve the lessor of the real property tax liability on the leased premises for the term of the lease or any renewal of the lease. The lessee was to pay rent starting five years after execution . of the lease, August, 1981 OR until lessee has adopted a planned development for the premises .and obtained all permits necessary to accomplish this development, whichever occurs later. City staff contacted the State Board of Equalization and, after considerable negotiations and meetings, was able to reduce the taxes as follows: the original assessed valuation on the property in question was $364,707 with taxes of approxi- mately $28,000. The State Board reduced the assessed valuation on the 91 acres to $62,975 with taxes of $5,976. This means the City would be obligated to pay when they have obtained the necessary *permits for development which would be one-half of $5,976. Actual rent would be $2,988 annually as the lease on the 91 acres. Staff feels this is satisfactory inasmuch as a straight agri- cultural lease would be five,times this amount. This matter has been discussed with San Diego Gas and Electric Company and they are satisfied with this arrangement. 73 lo-- WILLIAM C. BALDWIN Assistant City Manager WCB:ldg . . ” -. , CITY OF CARL?-lD ’ Meeting of: CITY COUNCIL (Adjourned Kegular Meeting) Date of Meeting: November 10, 19h .-1 Time of Meeting: 5:oo P.M. . Place of Meeting: Council Chambers k \ / . . ROLL CALL: Present Absent AGENDA BILL #3507 - SAN DIEGO GAS AND ELECTRIC LEASE AGREEMENT. Mayor Frazee announced the meeting was called to discuss the Specific Plan for San Diego Gas and Electric. He announced he would abstain from discussion and voting on this matter. Following his relinquishment of the Chair to Vice-Mayor Chase, Mayor Frazee seated himself in the audiencl The City Manager reported on this matter'and pointed out that there were certain policies on which a decision should be made. He stated the City Attorney would review the terms of the agreement and point out those matters of.concern for Council discussion. The City Attorney reviewed in detail terms of th agreement and indicated the areas where policy decisions should be made by the Coun.cil. Furthe comment was made by the City Manager with regard areas of concern by San Diego Gas and Electric Company. Wall maps of the location were exhibitel MR. ART BISHOP, Land Engineering Supervisor and ~ MR; FRANK DEVORE, Manager of the Land Management Department, representing San Diego Gas and Elec- tric Company, expressed their concerns to the Council. . . The.City Manager and City Attorney responded to questions asked by the members of the Council. MR. MARK NELSON, 3831 Margaret Way, Carlsbad, identified himself as being a member of Carlsbad Community Cause but indicated he was speaking as an individual. He spoke in opposition to the issuance of the grading permit. Mr. Art Bishop stated SDG & E would like to offe a clause in exchange for Condition: #20. He stated SDG & E would 'be willing to offer a Claus which refers back to the Specific Plan. The clause is: “In the event there are any changes in the right to submit a Specific Plan for a.pproval for a utility facility at a later date, on the site designated for future power plant., then the lessor has the right to reduce the term of this lease to 30 years and to reduce the leas area from 91 acres to the easterly 45.5 acres". RECESS: Mayor' Frazee called for a recess at 6~30 P.M. and the Council reconvened at 6:42 P.M with all Council members present. .+m+be+, Mr. DeVore stated with regard to the matter of Rent Payment, he.would propose that the City accept the lease with a 5 year deferral payment of any rent with the understanding that both parties would do everythin.g possible to get the rent abatement and.the City would agree that if the rent could not be abated, '&ta+ they would agree to pay the sum of $14,000 a year after the 5 year deferral period and that the sum would never exceed the $14,000 a year. The $14,000 repre- senting one-half the estimated yearly taxes on that p;'.operty.. ..cL-MIflU*V ‘,-.-r-c*-.*..., .L .) _. , .~ _ ^. - -. _-..- .__--- _ ..^ __ . . .- - - .- ----.-. .-- ___.______- - .)7crp;ur- -‘.3a...2~ _ . ..%.V-----?-q ,.---%A-d--.xzz-- CITY Of CARLSBPspw- -"iXZiKXiiti+ . November 10, 1975 A motion was made that the City Manager be authc ed to issue a grading permi,t for the storage tar that is needed at this time immediately and thal the Council obligate themselves'to resolve the policy issues involved in this lease at the nexi Council meeting. The motion was given a second and after further discussion, with the permissic of the second, the motion was withdrawn. A motion was made that the recommended clause) G suggested by the representative from SDG&E in- volving a guarantee of zoning, not be included in the lease agreement. Further, a motion was made that the City accept the offer wherein SDG&E will continue paying the property taxes for five (5) years after the effective date of the lease and that SDG&E coopt ate in attempting to have the State Board of Equalization abate the taxes during the lease period and, failing that subsequent to the. ini- tial five year period, the City will agree to pa the sum of ,$14,000 per year and no more for the remaining term of the lease. A motion was made that the wording in Section 5, Page 3 be changed to read: "that Lessor may construct additional transmission and/or other utility lines upon the leased property". It was moved that the City Council accept the lease agreement between the City of Carlsbad and San Diego Gas and El,ectric Company, as amended, to include the change made in Page 3, Section 5, as stated in the .above motion and S'ection 6, in connection with the Rent. The City Manager pointed out that th.e lease agre ment would become null and void if it is not rat fied by the proper authorities of SDG&E and further negotiations would be necessary to re- solve the matter. The City Manager stated with regard tothe Carlsbac Blvd. Improvements that SDG&E intends to request the Council to consider an unsecured agreement for the improvements on Carlsbad Blvd.. The Compan has agreed for a portion of the improvements to supply a bond but it, is their intent at a later time to make the request for an unsecured agree- ment. By concensus of the Council, it was agreed that a secured agreement would not be necessary in this instance. The City Manager pointed out that it is his feel ing that there is a potentia.1 for disagreement concerning details of the improvements along Carlsbad Boulevard. The conditions of the lease indicate that there shall be a lease ,and further states no permit shall be issued until all of th conditions are met. The condition of the improv ments reads a little different indicating con- struction may be deferred until mutually agreeab to the City and SDG&E. He stated in view of the concensus of the Council on this matter, he .4y+’ lotion kyes loes lotion hyes lees lotion #yes lotion 9s * . M.--c-. -y’y,“-*.:l -; : /r- 8 I -,. , -.....- ^ -.-- _--- 4 _^__ - * -3- Novembe? 10, 1975 I would assume that the condition is met by the deferral and would not hold up issuing p.ermits. Lengthy discussion ensued and the Council stated it should be clear that deferral of the improve- ments without a secured agreement is not a pre- cedent but has been done only because the City can not provide SDG&E with complete requirements for the improvement of Carlsbad Boulevard at this time. Following the advice of the City Attorney, it was the concensus of the Council that the staff be directed to develop an Improvement Agreement for SDG&E to fully execute which would list the nature of all improvements. A motion was made that the Council accept the temporary easement for the purpose of access to the regional park and the easement for the pur- pose of construction for Cannon Road. The following Resolution was adopted by title only and with the unanimous consent of the Coun- cil, further reading was waived: . RESOLUTION NO. 3780. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A LEASE BETWEEN THE CITY OF CARLSBAD AND SAN DIEGO GAS & ELECTRIC COMPANY FOR A PARK ON THE SOUTH SHORE OF AGUA HEDIONDA LAGOON AND AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE. The City Attorney stated th.e staff will incorpor. ate in the text of the lease, those changes in accordance with the Council's previous motion in that regard. ADJOURNMENT: By proper motion, the meeting was adjourned at at 7:55 P.M. e Respectfully submitted, . MARGARET E. ADAMS, City Clerk Nora K. Gardiner, Recording Secretary lotion #yes lotion ,yes oes lotion yes I . F 3-5-79 Rent, payable under the terms of this lease, does not have to be paid before August, 1981. It may not have to be paid then unless the City has obtained all permits necessary for development of the leased land into a park.