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HomeMy WebLinkAbout2003-09-09; City Council; 17302; 24 Hour Fitness Parking Lease AgreementAB# 17,302 MTG. 9-9-03 DEPT. ED TITLE: APPROVAL OF A PARKING LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND 24 HOUR FITNESS INC. FOR A PORTION OF 5815 EL CAMINO REAL FOR PARKING PURPOSES DEPT. HD. CITY ATTY. CITY MGR RECOMMENDED ACTION: ADOPT Resolution No. 2003-234 approving a one year parking lease agreement for the term September 10, 2003 to September 9, 2004, with 24 Hour Fitness Inc, and authorizing the City Manager to execute all documents. ITEM EXPLANATION: The City of Carlsbad is the owner of real property located at 5815 El Camino Real in Carlsbad, California, formerly known as the Farmers Insurance site. Currently the City is evaluating future use of the property for public purposes through its facility usehesuse planning project. However, to date no long term plan for the site has been approved, nor is it likely that any plan for redevelopment of the site will be approved within the next twelve (12) month period. Recently the City was contacted by the corporate headquarters of 24 Hour Fitness Inc. with respect to the availability of excess parking at the site that could be used by their employees. They indicated a need for approximately 100 parking spaces. Staff has evaluated their request and does not feel that entering into a one year parking lease agreement will delay or impair the ability to continue planning redevelopment of the future municipal site. Furthermore, the excess parking identified for this purpose is located at the perimeter of the site and should not impact any current use of the facility. This interim use of the site by 24 Hour Fitness Inc. will provide the City with additional revenue that could be used to offset the ongoing maintenance costs associated with the site. ENVIRONMENTAL IMPACT: The Planning Director has determined that the project is exempt from the California Environmental Quality Act, pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts projects or activities that consist of leasing of existing public facilities involving no expansion of use. Short-term lease of public property for parking, with an existing use as a parking lot, and no other plan for development of that property, is such an activity. Should the City decide to pursue development of the site at a future date, additional environmental review will be conducted. FISCAL IMPACT: The term of the lease is one (1) year. The number of spaces to be provided is 106, with a base lease rate of $20 per month per parking stall, or $25,440 per year. EXHIBITS: 1. year parking lease agreement for the term September 10,2003 to September 9,2004. 2003-234 Resolution No. // of the City Council of the City of Carlsbad, California, approving a one 2. Lease Agreement between the City of Carlsbad and 24 Hour Fitness Inc. 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. 2003-234 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A ONE YEAR PARKING LEASE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND 24 HOUR FITNESS INC. FOR A PORTION OF THE PROPERTY AT 5815 EL CAMINO REAL ~~~ WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best interest of the City to lease a portion of the parking lot it owns located at 5815 El Camino Real, Carlsbad, CA 92008; and WHEREAS, the City Council has further determined that it accepts the terms of a one year parking lease agreement with 24 Hour Fitness Inc. Inc. for lease of 106 parking stalls located at the property; and WHEREAS, 24 Hour Fitness has provided the City with all required documentation under the terms and conditions of the agreement attached hereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. 2. That the above recitations are true and correct. That the attached lease agreement, Exhibit 2, between the City of Carlsbad and 24 Hour Fitness Inc. is approved. That the City Manager is authorized to execute all lease documents. 3. Ill I /I Ill Ill Ill Ill Ill I// ‘I 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 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the 9th day of SEPTEMBER, 2U03 by the following vote to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None Mayor ATTEST: LORRAINE M. WO& City Clerk (SEAL) Resolution No. 2003-234 -2- CITY OF CARLSBAD PARKING LEASE AGREEMENT 24 HOUR FITNESS USA INC. COMMENCING SEPTEMBER 10,2003 ENDING SEPTEMBER 9,2004 PARKING SPACE LEASE AGREEMENT This parking space lease agreement (“Lease”) is entered into on September 1,2003, by and between the City of Carlsbad, a California municipal corporation (“Lessor”), and 24 Hour Fitness USA, Inc., a California corporation (“Lessee”). Subject to the terms and conditions set forth in this Lease, Lessor hereby leases to Lessee that certain one hundred and six (1 06) parking spaces more particularly described in Exhibit A attached hereto and incorporated herein by reference (“Leased Space”). I. Term and Termination The term of this Lease shall be a period of one (1) year commencing on September 10, 2003, and ending on September 9,2004. The parties may extend the term of the Lease for an additional one (1) year period by written agreement executed thirty (30) days prior to the end of the current term. Notwithstanding the foregoing, Lessee or Lessor may terminate the lease at anytime and for any reason upon thirty (30) days prior written notice to the other party. 11. Payment In consideration for this Lease, Lessee agrees to pay to Lessor the rate of $20 per stall for a total of $2120.00 per month. Such payment shall be made by the 5th (fifth) of each month and shall be delivered by mail or in person to Lessor’s address listed in the Notices paragraph below. 111. Use of Space The Leased Space shall be used by Lessee’s employees and visitors to park their vehicles when working for and/or visiting Lessee. Lessee shall use such space for parking of personal vehicles only. No commercial vehicles may be parked on the premises at any time. IV. Alterations by Lessee In accordance with all applicable governmental laws, regulations, ordinances and codes, Lessee may re-stripe and provide appropriate signage that identifies the Leased Space, subject to Lessor’s written approval of plans submitted by Lessee to Lessor. Notwithstanding the foregoing, Lessee shall not make any other alterations, additions, or improvements to the Leased Space without the prior written consent of Lessor. V. Lessee’s Obligation Lessee, at Lessee’s sole cost and expense, shall keep in substantially the same condition and repair as upon the commencement of this Lease, the Leased Space. 2 Lessee shall also be responsible to keep the Leased Space free of dirt and debris at all times. V. Lessee’s Insurance For the mutual benefit of Lessor and Lessee, Lessee shall during the term of this Lease cause to be issued and maintained public liability insurance covering the Leased Space, in the sum of at least five hundred thousand dollars ($500,000) per single occurrence, and one million dollars ($1,000,000) in the aggregate, insuring the Lessee against liability for injury and/or death to persons or property damage, occurring in or on the Leased Space. Lessor shall be named as an additional insured entitled to primary coverage. VI. Non-Liability of Landlord Lessor, its officials, officers, agents and employees shall not be liable for any personal injury suffered by Lessee or Lessee’s employees or visitors or any damage to or destruction or loss of any personal property located or stored upon the Leased Space or property. This provision includes but is not limited to acts of theft, burglary, vandalism, assault or other criminal activity, as well as loss or damage of Lessee’s property in the Leased Space or on the property that may be caused by fire, windstorm, explosion or other cause, or by the act, or omission of any other Lessee at the property. Lessee accepts Leased Space “as is” and Lessee acknowledges that Lessor has not made and is not making any warranties whatsoever with respect to the Leased Space. Lessee acknowledges that the Leased Space and adjacent property is not secured or monitored by Lessor, and that Lessor is not responsible for supervision of any portion of Leased Space VII. Indemnification Lessee agrees to indemnify, protect, defend, and hold harmless the City of Carlsbad, its affiliates, subsidiaries, directors, officers, employees, agents, and representatives from and against any and all obligations, causes of action, claims, costs, injuries, damages, penalties, demands, expenses, attorneys’ fees, judgments, interest and/or liabilities of any nature or kind, arising from, out of, or in any way related to this Lease. The foregoing indemnity shall survive the expiration, cancellation, or termination of this Lease. VIII. Notices Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this lease or by law to be served on or given to either party to this lease by the other party shall be in writing, and shall be deemed duly served and given when personally delivered to the party to whom it is directed or any managing employee of that party or, in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, addressed to Lessor at 1635 Faraday Avenue, Carlsbad, California, 92008 or to Lessee at ’59b~) 1 cI - .‘;plecu c+ . [address], I+ b& [city], California q [zip code]. Either party may change its address for purposes of this paragraph by giving written notice of 3 the change to the other party in the manner provided in this paragraph. IX. Time of Essence Time is expressly declared to be of the essence in this Lease. X. Governing Law This Lease, and any and all disputes arising out of or relating to this Lease, or the subject matter, enforceability or breach thereof, shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, and venues for any dispute shall be in the courts of San Diego County. XI. Entire Agreement This instrument constitutes the sole and only full, final, and complete agreement between Lessor and Lessee with regard to the subject matter of this Lease and correctly sets forth the obligations of Lessor and Lessee to each other as of its date. It supersedes all prior and contemporaneous communications, representations, and agreements, whether oral or written and has been induced by no representations, statements, or agreements other than those herein expressed. This Lease may not be extended, amended, modified, altered, or changed, except in a writing signed by Lessor and Lessee. If any provision herein is declared invalid, it shall be considered deleted and shall not invalidate the provisions that remain. IN WITNESS WHEREOF, the parties have caused this Lease to be executed by their duly authorized representatives. 4 STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) On %s+- ?cp ,-3 before me, Mec,oLk% &-.e% , personally appeared , personally known to me (or proved to me on the basis &%atisfactory evidence) to be the person@) whose name(s) idare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislherltheir authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person@), or the entity upon behalf of which the person@) acted, executed the instrument. +zCJ \' \h WITNESS my hand and om1 seal. 5 STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) , personally appeared , personally known to me to be the personlS) whose name ) is/- subscribed to the within instrument and acknowledged to me that he/ & executed the same in his".CIPir authorized capacityw, and that by hishedthew * signature&) on the instrument the personw, or the entity upon behalf of which the persono acted, executed the instrument. WITNESS my hand and official seal. Signature um 6 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures. Executed at: @ on : By LESSEE: Executed at: on: By LESSOR: By: Name Printed: Title: Address: Telephone: ( ) Facsimile: ( ) Federal ID No. ApprqGW. as to form and legality: .. By : kONALD R. BALL Name Priu: Ravmond R. Patchett Title: Address: 1200 Carlsbad Village Drive Carlsbad, CA 92008 Telephone: 1760 ) 434-282 1 Facsimile: (760) 720-9461 Citv Manager. Citv of Carlsbad CITY ATTORNEY DATE : &* /&,aao3- 7