HomeMy WebLinkAbout2004-12-14; City Council; 17923; 24 Hour Fitness Inc parking lease agreementP w
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AB# 17,923
MTG. 12-1 4-04 -
DEPT. ED
CITY OF CARLSBAD - AGENDA BILL
TITLE:
APPROVAL OF A PARKING LEASE AGREEMENT
FITNESS INC. FOR A PORTION OF 5815 EL CAMINO REAL
FOR PARKING PURPOSES
BETWEEN THE CITY OF CARLSBAD AND 24 HOUR
RECOMMENDED ACTION:
ADOPT Resolution No. 2004-402 approving a one year parking lease agreement for the term
January 1,2005 to December 3 1,2005, 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 use/resuse 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 (1 2) month period. During 2003/2004, 24 Hour Fitness
leased 106 spaces for employee overflow parking. Recently the City was contacted by the corporate
headquarters of 24 Hour Fitness Inc. with respect to entering into a new parking agreement for 2005,
but reducing the number of spaces leased, to fifty (50). Staff has evaluated their request and does not
feel that entering into an additional one year parking lease agreement will delay or impair the ability
to continue planning redevelopment of the fbture 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 hc. 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 f?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 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 50, with a base lease
rate of $22 per month per parking stall, or $13,200 per year.
EXHIBITS:
1.
year parking lease agreement for the term January 1,2005 to December 1,2005.
Resolution No2004-402of 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.
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RESOLUTION NO. 2004-402
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 581 5 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 50 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:
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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.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council on the
14th dayof December 2004, by the following vote to Wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard.
NOES: None
ABSENT: None
Mayor
ATTEST:
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CITY OF CARLSBAD
PARKING LEASE AGREEMENT
24 HOUR FITNESS USA INC.
COMMENCING JANUARY 1,2005
ENDING DECEMBER 3 1,2005
24 Hour Fitness
Parking Lease Agreement
11/17/04
PARKING SPACE LEASE AGREEMENT
This parking space lease agreement (“Lease”) is entered into on January 1,2005, 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 fifty (50) 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 January 1,2005,
and ending on December 3 1 , 2005. 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 $22 per stall
for a total of $1 100 per month. Such payment shaII 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 for the sole purpose
of parking their personal vehicles when working for and/or visiting Lessee at Lessee’s
place of business. Lessee may not conduct any business activities on the leased premises
at any time. 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.
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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. Waiver of Relocation Benefits
Lessee understands this Lease Agreement is entered into for a specified period of time in
order to provide interim use of the 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.
IX. Notices
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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
party may change its address for purposes of this paragraph by giving written notice of
the change to the other party in the manner provided in this paragraph.
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[address] , - [city], California - [zip code]. Either
X. Time of Essence
Time is expressly declared to be of the essence in this Lease.
XI. 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.
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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.
By:
Name Printed:
Title:
Address:
Executed at: Carlsbad, CA
on: December 15, 2004
By LESSOR:
Name PrShted: Raymond R. Patchett
Title:
Address: 1200 Carlsbad Village Drive
Carlsbad, CA 92008
Telephone: (760 ) 434-282 1
Facsimile: (760) 720-9461
City Manager, City of Carlsbad
Telephone: ( )
Facsimile: ( )
Federal ID No.
7
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STATE OF CALIFORNIA)
COUNTY OF SAN DIEGO)
personally appeared
personally known to me be the personwwhose
nameWis/ar=tC%bscribed to the within instrument and acknowledged to me that
he/wtU executed the same in his/&&hetreuthorized capacityw, and that by
his&x/tbeirsignaturewn the instrument the persowor the entity upon behalf of
which the personwcted, executed the instrument.
WITNESS my hand and official seal.
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