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HomeMy WebLinkAbout1999-03-09; City Council; 15082; La Costa Branch Library Lease Amendmentc= F.. “CITY OF CARLSBAD - AGENGA BILL AB# /m TITLE: DEPT. Hd i%d LA COSTA BRANCH LIBRARY MTG . 319199 LEASE AMENDMENT DEPT. PW . RECOMMENDED ACTION: Adopt Resolution No. 99 c 3 ? authorizing the Mayor to execute the lease amendment between the City of Carlsbad and the owners of Plaza Paseo Real Shopping Center (i.e. the Board of Administration as Trustees for the City of San Jose Police and Fire Department and the Board of Administration as Trustee for the Federated City Employees Retirement Fund). ITEM EXPLANATION: In October 1993 the Council approved a five-year lease with the owners of Plaza Paseo Real Shopping Center for the La Costa Branch Library, which expired on December 31, 1998. The new branch library is under construction and is not scheduled to open until August, 1999. The holdover clause of the existing lease stipulates a 25% increase in rent for each month of the holdover, i.e. from $5500 to $6,875. Facilities Management staff has negotiated with the property management firm and secured a 50% reduction of this increase in exchange for a lease extension through August 1999. This results in a net savings to the City of $5,500. Should the new branch library not open by August the holdover clause would be invoked and the rent increased an additional 12.5% for the duration of the lease. FISCAL IMPACT: Funds for the increased rent are included in the Library budget. EXHIBITS: 1. Resolution No. ?y- 37 2. Lease Amendment. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - RESOLUTION NO. 99-77 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN EXTENSION OF THE EXISTING LEASE WITH THE OWNERS OF PLAZA PASEO REAL SHOPPING CENTER FOR THE LA COSTA BRANCH LIBRARY LOCATED AT 6949 El CAMINO REAL, SUITE 200, CARLSBAD. CALIFORNIA WHEREAS, the City of Catlsbad, California has determined the need to provide leased space for the La Costa Branch Library; WHEREAS, Facilities Management staff has negotiated with the property manager and secured an eight-month extension with an increase in rent from $5,500 to $6,187.50 per month; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad as follows: 1. That the above recitations are true and correct. 2. That the Lease Amendment between the City of Carlsbad and the owners of the Plaza Paseo Real Shopping Center attached hereto as Exhibit 2 is hereby approved. 3. That the Mayor is hereby authorized to sign the lease amendment on behalf of the City. PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbad at its regular meeting held on the 9th day of March , 1999, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKRANZ, City Clerk \ (SEAL) 2 AMENDMENT TO PLAZA PASEO REAL SHOPPING CENTER LEASE THIS AMENDMENT dated as of January lSt , 1999 is made by and between THE BOARD OF ADMINISTRATION AS TRUSTEES FOR THE POLICE AND FIRE DEPARTMENT RETIREMENT FUND AND THE BOARD OF ADMINISTRATION AS TRUSTEE FOR THE FEDERATED CITY EMPLOYEES RETIREMENT FUND, as “LANDLORD” and CITY OF CARLSBAD, as “TENANT”. WITNESSETH THAT WHEREAS, by that certain undated Lease by and between LANDLORD and TENANT (the “Lease”), LANDLORD leased and demised unto TENANT to be operated as the City Library the following described property situated in Carlsbad, California, to-wit: consisting of approximately 5,613 square feet of floor space within Plaza Paseo Real Shopping Center and more commonly known and designated as 6949 El Camino Real, Suite 200, Carlsbad, California 92009 (the “Premises”) WHEREAS, the Lease expired on December 31,1998; and WHEREAS, TENANT desires not to vacate the aforementioned Premises at this time. NOW, THEREFORE, IN CONSIDERATION OF THE Premises and the mutual covenants and conditions hereinafter contained, the parties hereto agree as follows: 1. LANDLORD AND TENANT agree to amend Section 13.1.2 (Holding Over) revising the rent payment required therein to one hundred twelve and one-half percent (112.6Or6) of the Fixed Minimum Rent currently in place, or $6,187.50 per month. 2. Notwithstanding other provisions of the Lease, TENANT hereby agrees to pay LANDLORD a minimum amount of $49,500 in Fixed Minimum Rent as consideration for the hold over of this lease, regardless of the actual length of time Tenant occupies the Premises. In the event Tenant vacates the Premises prior to having paid $49,500 in Fixed Minimum Rent, Tenant shall pay the balance due upon vacating the Premises. 3. LANDLORD AND TENANT hereby covenant and agree that until the Premises are surrendered, LANDLORD AND TENANT shall perform and be bound by all covenants and conditions contained in said Lease and Addendum to Lease attached thereto and so far as they are consistent with the provisions of this Agreement. 4. The said Lease is modified in and above in the above particulars only and all other provisions thereof in so far as they are consistent herewith shall remain binding and in full force and effect. The above modification shall henceforth be considered a part of said Lease and is fully and completely written therein. IN WTNESSES THEREOF, the parties hereto have executed this Addendum the day and yearJkst above written. CITY By: Its: IGvor LANDLORD THE BOARD OF ADMINISTRATION as trustee for the POLICE AND FIRE DEPARTMENT RETIREMENT FUND Attest: By: ALETHA L. RAUiENKRANZ &vard F. Overton, Secretary Its: c THE BOARD OF ADMINISTRATION as trustee for the FEDERATED CITY EMPLOYEES RETIREMENT FUND By: Edward F. Overton, Secretary ATE IT - DON’T SAY%! Date March 15, 1999 19 To Chuck Walden/ PW @ Oak Street OReply Wanted From Kathleen Shoup/Clerk's Office q No Reply Necessary Enclosed are two original lease agreements for the La Costa Branch Library. They have been signed by the City. Please process them for signature by the Boards of the Police & Fire Dept. Retirement Fund and the Federated City Employees Retirement Fund. We require that one of the fully executed original leases be returned to this office for the City's files. Thank you for your help with this matter. If you have any questions please call me at extension 5106. (reference Agenda Bill No. 15,082, Resolution No. 99-77, Council meeting j/9/99) .