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Home My WebLink About1991-12-03; City Council; 11463; APPROVE LEASE AGREEMENT WITH PALOMAR 910 ASSOCIATES, LTD. FOR SUITE C LOCATED AT 6351 YARROW DRIVE'* 63 p 9 0 ir&: 19. % .. z 2 F 0 4 2 0 z 3 0 0 ;' DEPT. CITY A CITY k F CBHL3itrAU - AUiStNU ILL i c'TL APPROVE LEASE AGREEMENT WITH PALOMAR 910 ASSOCIATES, LTD. FOR SUITE C LOCATED AT 6351 YARROW DFWE AB#+- TITLE: DEPT. UStM RECOMMENDED ACTION: Adopt the attached Resolution'which: MTG. 12 /O3 /91 f' /, /&- / /L c, "I!- 1. Authorize the Mayor to execute the lease agreement between the City o Carlsbad and Palomar 910 Associates Ltd. ITEM EXPLANATION: The Purchasing Department cutrently leases Suite C at 6351 Yarrow Drive for the City' warehouse and record storage requirements. We are in the last year of the lease whic was originated on October 1, 1989. The terms of the lease included a provision for a automatic cost of living increase on each anniversary date. The rate was scheduled I be increased on October 1, 1991 from $3,190 per month to $3,415 per month or fro1 $0.554 per square foot to $0.593 per square foot. Because of the significant chanz in market conditions staff from Utilities and Maintenance and Purchasing contacted tl owner and successfully renegotiated the lease. This not only resulted in reduction ( $365 a month in the rental rate but the inclusion of tenant improvements including restroom and new loading ramp. The owner has requested in return that we exter the lease three years and allow him the same 180 day cancellation clause that the Cii currently enjoys. FISCAL IMPACT: The cost of the current lease 'was due to increase on October 1, 1991 to $3,415 p month or $40,980 annually. The revised lease, which is retroactive to October 1, w cost $3,050 per month or $36,600 annually for a net savings $13,140 over the ne three years. Approval of the recommended action would therefore result in the total expenditure $27,450 during the remainder of this fiscal year. Funds have been included in t Purchasing budget for this purpose. EXHIBITS: 1. 2. Lease Agreement 0 ;Y c Resolution No. 'j/ - I J J 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 B e RESOLUTION NO. 9 1-385 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN EXTFNSION OF THE EXISTING LEASE WITH PALOMAR 910 ASSOCIATES, LTD. FOR SUITE C LOCATED AT 6351 YARROW DRIVE, CARLSBAD, CALIFORNIA WHEREAS, the City of Carlsbad, California has determined the need to provic warehouse space for record and non-record storage; WHEREAS, after negotiating with the managing partner of the property ai securing an extension of the lease period, a reduction in the rental rate and vario tenant improvements; NOW, THEREFORE,’ BE IT RESOLVED, by the City Council of the City Carlsbad, California as follows: 1. 2. That the above recitations are true and correct. That the modification to the Lease Agreement between the City Carlsbad and Palomar 910 Associates, Ltd. attached hereto as Exhi A is hereby approved. 2o 21 22 23 24 25 26 27 28 1 3. That the Mayor is hereby authorized to sign the lease modification behalf of the City. \\\ \\\ I\\\ \\\ 1 2 3 4 5 6 1 8 9 10 11 12 13 14 0 e PASSED, APPROVED AND ADOPTED by the City Council of the City oj Carlsbad at its regular meeting held on the December 3rd day of 1 1991, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Larson, Stanton and Nygaarc NOES: None ABSENT: None CLAUDE A. LEWIS, Mayor ATTEST: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 0 0 Palomar 91 0 Associates, Ltd. & EL PEdmaa &&aLby i 7777 FAY AVENUE, SUITE K-I37 LA JOLLA, CALIFORNIA 92037 . ., ,' 1,. ' /I > ~\ PHONE: (619) 454-8841 FAX: (619) 454-8842 / ('3' , -. sQ yj'j\ - $j -?.I ta i!: 1 * ' . c.: 1 (i \[ (,a. Y September 26, 1991 ?IG City of Carlsbad \.<!I 2 1 f:~z!,~'~ 1300 Carlsbad Village Drive Carlsbad, CA 92008-1980 Re: Lease @ 6351 Yarrow Dr, Ste C, Carlsbad, dtd May 2, 1989 Attn: Mrs. Ruth Fletcher Furchasing Agent Dear Mrs. Fletcher: I hereby offer you a new proposal +or a three year extension to our current lease, which is referenced above. This proposal 15 more favorable to the City of Carlsbad than either of my recent proposal5 dated August 27 and September 23, 1991. Our current lease has a termination date of. September 30, 1992- It provides for a rental rate of $3,190 per month. It alsa provides for a 8225 increase to a new rental rate of $3,415 per mon-th beginning October 1, 1991 and continuing at that rate until the September 30, 1912 termination date. The lease contains il clause giving the City of Carlsbad (City) the right to terminate the lease by giving Palomar 910 Associates (Palomar) 3ri~ hundred and eighty (180) days prior written r?oticc (See PayP 4, Va-a. E{, TERM of the lease). F'alornar hold5 a security depcEit of f3,190 which is schzduled to be iczreascd to 8:,415 an October j., IC;?1. The loa5ed area is al;pi-o;cir;iately 5,762 sq, flr. ?d.:o,qar flc:-ety p~-~~~~~~ ++e I r2;%.2c. ppr'z c-2 kr z;;tz;?d2d kf~;-,?~: t.r:*r-~; -. , t3 J. r:z?L-: tsi-ai:istj ~i-1 idate US =f=p~~mb#::- 20y :7cj'5, t;:?L.iet- i.r:c +C~ll.~t~i lr[J tt.?i,-ii,s dt-:~! CCI~~:L:~ZS: ... a. f--J4!ilGifiGtr btiil , ?C It:; L;!l,E .,.;;pEr,.;E and IC1 6 ;.lf~tllt<;.!t e.r.r! cir-ciw*i y mar(.qer, P,JVC- ci-irr tal i C+I,~PQ i mytpovcmnt2 filz:jZ cii tile 1 t.iised ; ocal. i CA?: 1. une 7cF.t roz!ri, to br_l Iccsted ag;,inst tti-2 ~;~?5t i:i.311. 2. il concrete p1;~itf~lt-m 3,pp!-3xiiiijf:~;.:/ 10' i: SI) :: 2' hi51 k.u LC; l ucaired 21 unci thz ~JE:? tE!..t.\ L-J?~ 1 of ycur dcJr-i,:i ri!] area. It Nil 1 i nclu-ie 2 rainp sc ttiak yoir t-~11!. Lz zclc to dir.ive a pick-l_ip clr' sirnilar- v~nicle to titic' 1,3aiinj dock and nave the dark and tri.1~1.: ~fel:b: bct_;t be at appro:? imatel y the s,-i.:le 1 ev/el. - .. . c- e 0 Palomar 91 0 Associates, Ltd. c/o Eei PEd'rnan .&EaL?..j LA JOLLA, CALIFORNIA 92037 I 7777 FAY AVENUE, SUITE K-137 PHONE: (619) 454-8841 FAX: (61 9) 454-8842 Pg. 2 Lease 6351 Yarrow, Ste September 26, 1991 b. The rental rate increase to 83,415 per month now scheduled to begin October 1, 1991 and to remain in effect until September 30, 1992 15 to be cancelled. The rental rate for that period shall be reduced by $365 to a new rate of only $3,050 per month. Any increases for that period which the City may have paid prior to approval of this proposed change, will be promptly refunded. c. The rental rate for the proposed three year extension shall be $3,050 per month. The net result of this paragraph and the one above is that the base rent beginning Dctober 31, 1991 through the remainder of this lease shall be as follows: Oct. 1, 1991 through Sept. 30, 1995 - S3,050/rnonth d. On October 1, 1991 the security deposit shall be reduced to $3,050. e. Paragraph B. TERM, shall be deleted in its entirety and the following substituted in it5 place: The term of this lease is for a period of 5is ib) yEars, commencing October 1, 1789 and ending September 30, 1995, provided however LESSOR AbID LESSEE SHALL E6CI-l have the richt to terminate said Lease snykirnz a+ter- cam~letion cjf the FIRST THITi'1-'f (30) MONTHS oi ?.~IIS 1ra~je by first giving ane hsndred and c.icIity ilti0) ciayr3 pr-ior hr-ikt-cn no:ic:o to .Llie other pzrty nn or a{F-el-. ?!at-C?i ..:(.I, 1992. -. - f. All other kerms and conditions 9; ihe l2a.s;~ are kzi rem3il.t unchanged. Si nccrc-' 4 [I C E:> T E fi KJa te _____ '// '2- _____ ____-... . @?&a% El z Per-? III~II Manag i nc Partner I' LANDLORD 'I EF: p"