HomeMy WebLinkAbout2004-12-07; City Council; 17910; Montessori Arts & Sciences first lease amendmentAB# 17,910
MTG. 12/7/04
DEPT. ED
TITLE:
Approval First Lease Amendment Between the City of
Carlsbad and Montessori Arts and Sciences for
3368 Eureka Place
DEPT. HD.
CITY ATTY.
CITY MGRC
RECOMMENDED ACTION:
Adopt Resolution No. 2004-384 authorizing the City Manager to execute documents associated with
the First Lease Amendment between the City of Carlsbad and Montessori Arts and Sciences for 3368
Eureka Place.
ITEM EXPLANATION:
On May 28,2004 the City purchased property at 3368 Eureka Place, in Carlsbad, fi-om the Carlsbad
Girls Club. At the time of the acquisition, the property was leased to Neighborhood House
Association, Montessori Arts & Sciences Inc. and Church on the Coast. In July 2004, the City
entered into a short-term lease agreement with Montessori Arts and Sciences for a six (6) month term
beginning July 1, 2004 and ending December 31, 2004 in order to accommodate the schedule for
construction of a new school facility and subsequent relocation of the school. In November 2004,
Montessori Arts and Sciences notified the City that their construction schedule was delayed and asked
for an extension to their lease term. Staff has evaluated the impact of extending the lease term and
has determined that extending the term to March 31, 2005, will not impact the City’s plans for
relocation of the Adult Learning Center or Centro de Infonnacion.
ENVIRONMENTAL IMPACT:
The Planning Director has determined that the project is exempt fi-om 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 consistent with the existing use , with no plan for development of that
property, is such an activity. Should the City pursues developmenthedevelopment of the site,
additional environmental review will be conducted.
FISCAL IMPACT:
As a result of the lease extension with Montessori Arts & Sciences Inc. for an additional three (3)
month period, the City will receive rent revenues of $4050. Since CDBG funding was utilized for
acquisition, revenues generated from the property are considered program income and must be
directed towards the operation of the Center and its programs, or reallocated to another CDBG
eligible project/program.
EXHIBITS:
1. Resolution No. 2004-384 of the City of Carlsbad, California.
2. First Amendment of Lease Agreement between Montessori Arts & Sciences and the City of
Carlsbad.
3. Letter dated November 1,2004 from Montessori Arts and Sciences.
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RESOLUTION NO. 2004-384
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
.AGREEMENTS ASSOCIATED WITH THE FIRST
AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE
CITY OF CARSLBAD AND MONTESSORI ARTS AND
SCIENCES INC. FOR 3368 EUREKA PLACE
WHEREAS, the City Council of the City of Carlsbad has determined that it is in the best
interest of the City to approve a First Amendment to the Lease that extends the tenancy of
Montessori Arts & Sciences Inc. through March 31,2005; and
WHEREAS, both Montessori Arts and Sciences Inc. has agreed that execution of the
respective agreements will satisfy any and all of the City’s current or future obligations for
assistance with relocation fkom 3368 Eureka Place.
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 First Amendment to the lease agreement, Exhibit 2,
between the City of Carlsbad and Montessori Arts & Sciences Inc. is
approved.
That the City Manager is authorized to execute all documents related to the
First Amendment to the lease agreement between the City of Carlsbad and
Montessori Arts and Sciences Inc.
3.
Ill
Ill
Ill
Ill
Ill
Ill
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the 7 th
day of December 2004, by the following vote to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard.
NOES: None
ABSENT: None
YXAUP>E A. LEWIS
Mayor
ATTEST:
-2- 3
FIRST AMENDMENT TO LEASE
BETWEEN THE CITY OF CARLSBAD
AND MONTESSORI ARTS AND SCIENCES
FOR PROPERTY LOCATED AT
3368 EUREKA PLACE
CARLSBAD, CALIFORNIA 92008
3
FIRST AMENDMENT TO LEASE:
EXTENSION OF TERM
1. Consideration; Agreement To Amend. For valuable consideration, the
receipt and sufficiency of which are acknowledged, Landlord and Tenant amend
the Lease in the following respects:
2. Meaning of Terms; Effective Date. Except as otherwise stated in this First
Amendment to Lease: Extension of Term (“First Amendment”), (a) all initially
capitalized terms in this amendment will have the respective defined meanings
stated in the Lease, and (b) the terms and provisions of this amendment will be
considered to be effective as of the date of this amendment.
3. Revised Lease Expiration Date; Extended Term. The Lease Term is
currently scheduled to expire on December 31,2004 (Lease Expiration Date). As
of the date of this First Amendment, the Lease Term is extended to March 31,
2005 (Revised Lease Expiration Date) and, unless terminated earlier under the
terms of the Lease, will expire on the Revised Lease Expiration Date. The period
of time beginning on the day following the Lease Expiration Date and continuing
through the Revised Lease Expiration Date is the “Extended Term.”
4. Base Rent. Throughout the Extended Term, Tenant will pay an amount
equal to $1350.00 per month as Base Rent due under the Lease.
5. Tenant’s Acceptance of Premises “As Is.” Landlord and Tenant
acknowledge that Tenant has been occupying the Premises under the Lease
since July 1, 2004. Tenant continues to accept the Premises in their current “as
is” condition.
6. Brokers. Landlord and Tenant each represents to the other that it has had
no dealings with any real estate broker, agent, or finder in connection with the
negotiation of this First Amendment, and that they know of no other real estate
broker, agent, or finder who is entitled to a commission or finder‘s fee in
connection with this First Amendment. Each party shall indemnify, protect,
defend, and hold harmless the other party against all claims, demands, losses,
liabilities, lawsuits, judgments, and costs and expenses (including reasonable
attorney fees) for any leasing commission, finder’s fee, or equivalent
compensation alleged to be owing on account of the indemnifying party‘s
dealings with any real estate broker, agent, or finder other than the Brokers. The
terms of this section 8 will survive the expiration or earlier termination of the
Extended Term.
7. Waiver of Relocation Benefits. Lessee understands this First Amendment
is entered into for a specified period of time in order to provide interim use of the
First Amendment
3368 Eureka Place
Montessori Arts & Sciences
City of Carlsbad 11-10-04
2
property. Lessee therefore agrees to waive any and all relocation benefits
defined in the California Relocation Assistance Law (Government Code, Section
7260, et, seq.) after having the opportunity to consult with legal counsel about
potential entitlements.
8. Effectiveness of Lease. Except as explicitly modified by this First
Amendment, all of the terms and provisions of the Lease are and remain in full
force and effect.
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS FIRST
AMENDMENT TO LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN,
AND BY THE EXECUTION OF THIS FIRST AMENDMENT TO LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY
AGREE THAT, AT THE TIME THIS FIRST AMENDMENT TO LEASE IS EXECUTED,
THE TERMS OF THIS FIRST AMENDMENT TO 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 First Amendment to Lease at the place and on the dates
specified above their respective signatures.
Executed at: cfir bbsd
on: Novedxv- 17.
BY LESSEE: BY LESSOR:
Title: Q Wnpr Title: City Manager, City of Carlsbad
&OM& CnFssddress: 1200 Carlsbad Village Drive
By: Carlsbad, CA 92008
Name Printed: Telephone: (760 ) 434-282 1
Title: Facsimile: (760) 720-9461
3368 Eureka Place
Montessori Arts & Sciences
City of Carlsbad 11-10-04
Facsimile: ( )
Federal ID No.
Approved as to form:
By: ia-gQL RONALD R. BALL
CITY ATTORNEY
STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO)
On Av &&w &lo04 before me, kc^ 4 A. I.kdL6 ', docaw &L , personally appeared o ,nnn \d r , personally known to me (or proved to me on the'dasis of satisfactory evidence) to be
the persono whose name@) islare subscribed to the within instrument and
acknowledged to me that he/she/tke)r executed the same in &/her/tbeir authorized
capacity(&), and that by bis/her/tM signature(@ on the instrument the person(& or
the entity upon behalf of which the person(@ acted, executed the instrument.
WITNESS my hand and official seal.
First Amendment
3368 Eureka Place
Montessori Arts & Sciences
City of Carlsbad 1 1 - 10-04
Signature
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Montessori Arts and Sciences School
Montessori Arts B Sciences, lnc.
3016 Highland Drive Carlsbad, CA 92008-1915 Ph/Fax (760) 434-6440
November 1, 2004
Cynthia Haas
Economic Development
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Dear Cynthia,
As you are aware, we are working diligently to complete the permanent site for
our school at 3016 Highland Drive. Although the construction is progressing at a good
rate, it appears that we may not be complete and ready for the certificate of occupancy
by the goal December 30,2004.
At this time, it would be helpful if you could please extend the arrangement we
have presently for the month- to- month rate at $1,350. Our school has downsized
considerably through the long process of acquisition of property, permitting, plan
checks, inspections and contractors’ schedules. As it is now, balancing the budget is
a challenge. Surely, we hope to complete the City’s requirements for occupancy by
December 30, however we do sense the uncertainty of the challenging project of
building a school that meets the commercial requirements that we have undertaken
We are willing to cooperate fully with any needs the Carlsbad Library has for the
facility. We are aware that much planning needs to take place as 3368 Eureka Place
is prepared for its future.
Certainly, we should have completed all the City’s requirements and be moved
to the 301 6 Highland Drive location by March 1, 2004. We are still trying to complete
the project by December 15, 2004
Thank you for your consideration.
cc: Deborah Fountain
Cliff Lange