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Home My WebLink About2005-03-15; City Council; 18016; Lease Amendment Montessori Arts and SciencesAB# 18,016 TITLE: MTG. 3/15/05 Carlsbad and Montessori Arts and Sciences for Approval Second Lease Amendment Between the City of DEPT. ED DEPT. HD. CITY ATTY. 3368 Eureka Place I CITY MGR- RECOMMENDED ACTION: Adopt Resolution No. 2005-066 authorizing the City Manager to execute documents associated with the Second 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, from 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 to March 31, 2005. On December 7, 2004, The City Council Approved the First Amendment to the Lease Agreement. However, as a result of unusually high levels of rainfall, Montessori Arts and Sciences is now requesting an additional extension to June 30, 2005. Staff has evaluated the impact of extending the lease term and has determined that extending the term to June 30, 2005, will not impact the City’s plans for relocation of the Adult Learning Center or Centro de Informacion. 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 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 two (2) month period, the City will receive rent revenues of $2700. Since CDBG fbnding 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 proj ect/program. EXHIBITS: 1. Resolution No. 2005-066 of the City of Carlsbad, California. 2. Second Amendment of Lease Agreement between Montessori Arts & Sciences and the City of Carlsbad. 3. Letter dated February 24,2005 ffom Montessori Arts and Sciences. 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 25 28 RESOLUTION NO. 2005-066 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAFUSBAD, CALIFORNIA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL AGREEMENTS ASSOCIATED WITH THE SECOND 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 Second Amendment to the Lease that extends the tenancy of Montessori Arts & Sciences Inc. through June 30,2005; and WHEREAS, 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 from 3368 Eureka Place. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California as follows: 1. That the above recitations are true and correct. 2. That the attached First Amendment to the lease agreement, Exhibit 2, between the City of Carlsbad and Montessori Arts & Sciences Inc. is approved. 3. 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. Ill Ill Ill Ill Ill Ill 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 15 th dayof MARCH 2005, by the following vote to wit: AYES: Council Members Lewis, Hall, Kulchin, Packard, NOES: None ABSENT: None Mayor ATTEST: (SEAL) -2- 3 SECOND AMENDMENT TO LEASE BETWEEN THE CITY OF CARLSBAD AND MONTESSORI ARTS AND SCIENCES FOR PROPERTY LOCATED AT 3368 EUREKA PLACE CARLSBAD, CALIFORNIA 92008 EXHIBIT 2 9 SECOND 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. Meaninq of Terms; Effective Date. Except as otherwise stated in this Second Amendment to Lease: Extension of Term (“Second 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 First Amendment Lease Term is currently scheduled to expire on March 31,2005 (Lease Expiration Date). As of the date of this Second Amendment, the Lease Term is extended to June 30, 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 Second 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 Second 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. Second Amendment 2 3368 Eureka Place Montessori Arts & Sciences City of Carlsbad 2-28-05 7. Waiver of Relocation Benefits. Lessee understands this Second Amendment 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. 8. Effectiveness of Lease. Except as explicitly modified by this Second 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 SECOND AMENDMENT TO LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS SECOND AMENDMENT TO LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS SECOND AMENDMENT TO LEASE IS EXECUTED, THE TERMS OF THIS SECOND 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 Second Amendment to Lease at the place and on the dates specified above their respective signatures. Executed at: Carlsbad, California MAR 1 8 2005 Raymond R. Patchett, City Manager Title: Address: 1200 Carlsbad Village Drive City Manager, City of Carlsbad By: Carlsbad. CA 92008 Name Printed: Telephone: J760 ) 434-2821 Title: Facsimile: J760) 720-9461 Address: Second Amendment 3 3368 Eureka Place Montessori Arts & Sciences City of Carlsbad 2-28-05 6 Appmd as to form: RONALD R. BALL r/a~. CITY ATTORNEY Second Amendment 3368 Eureka Place Montessori Arts & Sciences City of Carlsbad 2-28-05 4 STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) ony’hetcl 3 ,300s before me, dd’m. d OhyL/ , personally appeared Iamn Get fist Tu tar, * I , personally known to me (or proved to me on the bais of satisr‘actory evidence) to be the person(&) whose name@- is/- subscribed to the within instrument and acknowledged to me that ke/she/tbey executed the same in Mhedtbek authorized capacity(&), and that by Mher/tkeir signaturewon the instrument the person@, or the entity upon behalf of which the person@) acted, executed the instrument. WITNESS my hand and official seal. Signature Second Amendment 3368 Eureka Place Montessori Arts & Sciences City of Carlsbad 2-28-05 5 Montessori Arts and Sciences Schobl P. 81 f At #is time, it wfd be helpful ff the City of CarJsbad could please sxtend the arrangema we Ram prewdy for the month- to- month rate at $1,350. m: Deborah Fountain EXHIBIT 3 9