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HomeMy WebLinkAbout2016-07-12; City Council; Resolution 2016-1421 RESOLUTION NO. 2016-142 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, 3 CALIFORNIA, RATIFYING THE CITY MANAGER'S EXECUTION OF THE FIRST AMENDMENT TO THE LEASE AGREEMENT WITH NEW 4 VILLAGE ARTS TO OPERATE A THEATER AND ARTS INCUBATOR AT 2787 STATE STREET 5 6 WHEREAS,the city council has determined it is in the best interest of the city to grant 7 the first one-year extension contained within the Lease Agreement with New Village Arts for 8 city-owned property located at 2787 State Street; and 9 10 WHEREAS,the extension of this lease will further the goals and objectives of the Arts 11 Element of the City of Carlsbad's General Plan,specifically objectives which promote 12 permanent facilities for exhibition, performance, rehearsal, discussion, or teaching of visual and 13 performing arts and cultural endeavors,and which encourages residents and visitors to 14 practice, participate, and observe artistic and cultural activities; and 15 WHEREAS,the initial term of the Lease Agreement expired on June 30, 2016; and 16 17 WHEREAS,the parties were not able to agree on the terms of the First Amendment to. 18 the Lease Agreement in time for the June 27 City Council meeting, but have now agreed on the 19 terms; and 20 WHEREAS,the City Manager executed the First Amendment to the Lease Agreement on 21 or before June 30, 2016 to avoid termination of the Lease Agreement; and 22 WHEREAS,the First Amendment to the Lease Agreement with New Village Arts modifies 23 24 the terms of the Lease Agreement to:(1) include an additional rent payment of $0.50 per ticket 25 sold to assist in covering Lessor's costs to maintain, repair, or improve the Premises, if any; and 26 (2) include provisions regarding payment of prevailing wage for tenant improvements. 27 28 1 NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Carlsbad, 2 California,as follows that: 3 1.The above recitations are true and correct. 4 2.The City Manager's execution of the First Amendment to the Lease Agreement 5 6 with New Village Arts, attached hereto as Exhibit A,is ratified. 7 3.The City Manager is delegated authority to extend the Lease Agreement for one 8 additional year following the expiration of the First Amendment. 9 PASSED,APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City 10 of Carlsbad on the 12th of July, 2016, by the following vote to wit: 11 12 13 AYES:Hall, Wood, Schumacher, Blackburn, Packard. 14 NOES:None. 15 ABSENT:None. 16 q7 17 18 MA HALL,Mayor 19 20 AI I ALI y- LAIIB ='A ENGLESON, City erk 21 (SEAL) 22 v.s BA°........ 23 z 0..') 24 ......\„,•• 25 26 27 28 FIRST AMENDMENT TO LEASE AGREEMENT This First Amendment to Lease Agreement ("First Amendment")is effective as of July 1,2016 (the "Effective Date"), by and between the City of Carlsbad,a municipal corporation of the State of California ("Lessor" or "City")) and New Village Arts,a California tax exempt non-profit public benefit corporation organized under Section 501(c)(3)of the U.S.Internal Revenue Code ("Lessee")(collectively,"Parties"), for the property located at 2787 State Street, California, 92008. RECITALS WHEREAS,the Parties entered into that certain Lease Agreement, dated July 1,2013 ("Agreement"), for the property located at 2787 State Street, Carlsbad, California ("Premises") consisting of approximately 9,400 square feet of commercial building space; WHEREAS,the renewal of this lease will further the goals and objectives of the Arts Element of the City's General Plan, specifically objectives B.1 which promote permanent facilities for exhibition, performance, rehearsal, discussion, or teaching of visual and performing arts and cultural endeavors, and objective B.3 which encourages residents and visitors to practice, participate, attend and observe artistic and cultural activities; WHEREAS,the Lessee operates the premises as a performing arts facility,including without limitation, theater and musical performances,rehearsal,discussions and teaching performing arts within 6,300 square feet and an arts incubator fronting State Street within the remaining 3,100 square feet; WHEREAS,the Parties desire to extend the term of the Agreement for an additional one (1) year period, ending on June 30, 2017; and WHEREAS,the Parties desire to modify the terms of the Agreement to:(1)include an additional rent payment of $0.50 per ticket sold to assist in covering Lessor's costs to maintain, repair, or improve the Premises, if any; and (2) include provisions regarding payment of prevailing wage for tenant improvements. NOW, THEREFORE,in consideration of the covenants and conditions contained herein, the parties hereto agree as follows: TERM: The term of this First Amendment shall be for a period of one (1) year commencing on July 1,2016, and ending on June 30, 2017.Lessee shall be entitled to conduct business prior to commencement date. Upon the expiration of this First Amendment,Lessee may request and Lessor may grant,at its sole discretion and option, the renegotiation of lease terms. At Lessor's sole discretion, Lessee may extend the initial Lease Term for one (1)additional one (1) year period,upon the same terms and conditions stated herein.Lessor will only consider a request for extension if Lessee has complied with all terms and conditions of the Agreement and Lessee submits a written request for the extension at least ninety (90) days prior to the expiration of this First Amendment. 1.Section 2. RENT is amended by adding the following language: (d)Lessee agrees to pay Lessor Fifty Cents ($0.50) per ticket ("ticket surcharge") on all ticket sales starting July 1,2016.The ticket surcharge shall be applied to single tickets, which shall include general admission tickets,senior/student/military discount tickets,tickets with discount codes,and group sales tickets. Should Lessor grant an extension of the Agreement to commence on July 1,2017,Lessee shall pay Lessor Seventy-Five Cents ($0.75)per ticket on all ticket sales starting July 1,2017.Ticket surcharge payments 1 shall be due to city quarterly, and payable by Lessee in arrears on or before the tenth (10th) day of receipt of the completed financials for the quarter, but not later than forty-five (45) days from the month following the quarter for which the ticket surcharge was collected.Ticket surcharge is not to be applied to complimentary tickets or vouchers, "pay-what-you -can" tickets, or season passes. 2.Section 19. MAINTENANCE AND REPAIR is amended by adding the following language: Lessee acknowledges and agrees that: (a) any construction,alteration,demolition,installation or repair work performed under the Agreement constitutes "public work"under California Prevailing Wage Law,including Labor Code sections 1720 through 1815, et seq. (the "PWL"), and will obligate Lessee to cause such work to be performed as a "public work,"including,but not limited to,the payment of applicable prevailing wages to the all persons or entities subject to the PWL,subject to all applicable exceptions related to the use of volunteer labor pursuant to California Labor Code section 1720.4 and all other applicable statutory and case law exceptions; (b)Lessee shall cause all persons and/or entities performing "public work" under the Agreement to comply with all applicable provisions of the PWL, subject to all applicable exceptions related to the use of volunteer labor pursuant to California Labor Code section 1720.4 and all other applicable statutory and case law exceptions; (c)Lessor is not responsible for Lessee's failure to comply with any applicable provisions of the PWL; (d)Lessee's violations of the PWL shall constitute an event of default under the Agreement; and, (e)Lessee shall defend and indemnify Lessor and its officers, employees, council members and agents from and against any and all claims,assessments,back-wages,penalties,change orders,suits,liability, judgments,damages,proceedings,orders,directives,costs,including reasonable attorneys'fees,arising from or relating to any actual or alleged violations of the PWL,or other application of laws,ordinances or regulations,by any person or entity,including but not limited to Lessee,performing construction, alteration, demolition, installation, repair and/or any other type of work contemplated under Agreement. 3.All other terms, conditions,covenants and provisions of the Agreement shall remain in full force and effect.In the event of any conflict between the terms of the Agreement and this First Amendment, the terms of this First Amendment shall control. 4.The individuals executing this First Amendment each represent and warrant that they have the legal power, right, and actual authority to bind Lessee to the terms and conditions of this First Amendment. [Signatures on Page 3] 2 "LESSOR" CITY OF CARLSBAD APPROVED AS TO FORM: By:/7 By: - City Man.for ti./City Attorney "LESSEE" NEW VII).AGE ARTS By:By: Name:Mil Name:Al.(-1C.6664104^0%"--- Title:(-&Ai S LT*(1b4tIe:AkC44-4* -5 Date:(ji I C9 Date:6/Zi/ao NOTARY ACKNOWLEDGEMENT OF LESSEE'S SIGNATURE(S) MUST BE ATTACHED CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ,Sr.....taox.) On i2.c1 /go before me,1 K.)06-At-L.)R3 L. Date Here Insert Name and Title of the Officer personally appeared ksiy-Kor 004-4.-1/40.-. Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s)id/are subscribed to the within instrument and acknowlOged to me that 11.Wsl*they executed the same in hg/hFt/their authorized capacity(ies), and that by hig/96r/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. CURTIS MYLES JACKSON WITNESS my hand : nd official seal.VS IN VOW.Commission N 1999593';'4 •Notary Public -California "v San Digo Cunt/Signatur- Comm.E tist 1, 2016 er - Signe.re //otary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document:Document it e: Number of Pages:Signer(s)Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name:-'• ner's Name:0 Corporate Officer —Title(s):D Corporate Officer —Title(s): D Partner —D Limited D General 0 Partner — Limited 0 General0Individual0Attorney in D Individual E Attorney in Fact D Trustee Gu.••or Conservator 0 Trustee Guardian or Conservator El Other:0 Other: Signer Is •-enting:Signer Is Representing: 02014 National Notary Association •www.NationalNotary.org •1 -800-US NOTARY (1 -800-876-6827)Item #5907