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HomeMy WebLinkAbout1988-06-21; Housing & Redevelopment Commission; 104; Approval of Lease for Parking Lot on State StreetHOUSING AND * EDEVELOPMENT COMMISC -. ,N - bB#- TITLE: IITG.6/21/88 APPROVAL OF LEASE FOR PARKING LOT ON STATE STREET IEPT. RED AGEND RECOMMENDED ACTION: If Commission concurs, your action is to adopt Resolution No. 110 approving a lease between the City and Ms. Jean Baumgartner for property located at 3045,65 t 67 State Street. As part of the Elm Avenue/Carlsbad Boulevard Streetscape, Commission directed staff to secure replacement parking on/near Elm Avenue to replace spaces that will be lost. Ms. Baumgartner, owner of the property at 3045, 65 & 67 State will lease the site to the City for a parking lot. Staff has met with the Village Merchants parking sub-committee, who enthusiastically support parking at this location. The site is 16,087 square feet. Preliminary estimates by the City's traffic consultant are that the lot will accommodate 54 parking spaces. The lot will be combined with the leased parking lot to the west in order to accommodate through traffic. Lease payments would be $3,085 monthly, for an annual cost of $37,025 {$.21 per square foot}. The property has been appraised to establish this cost as a fair rate of return. Terms will be for twenty (20) years with a first right of refusal to purchase the property at the end or at any prior time agreed upon by the City and the owner. The Commission needs to authorize the Mayor to execute the lease documents. FISCAL IMPACT: When the Redevelopment Commission structured the Tax Allocation Bond Issue, one of the projects considered was the creation of parking along Elm Avenue. Approximately $1.5 million was to be allocated to this project. The lease under consideration in this action would require the use of approximately $400,000‘ of these funds. This would include a cost of living increase every three years. The cost to the Redevelopment Agency has been calculated by establishing the present value of the stream of lease payments over a 20 year time period at 7% interest. Under this concept, the Redevelopment Agency would pull $400,000 from the Tax Allocation Bond Issue Construction Fund and set those funds aside to pay future lease payments over the next 20 years. These funds, along with interest earned over that time, would provide the necessary cash flow to pay the lease payments over the life of this agreement. AGENDA BILL # 104 PAGE 2 Cost to demo the site would be approximately $4,000. Construction costs of the parking lot would be approximately $60,000. No relocation costs are anticipated. After lease and construction of this lot, there would be approximately $1,036,000 available for future parking improvements. EXHIBITS: l- Resolution No. 110 -Approving Lease for Parking Lot on State Street 2- Analysis of Lease Payments 3- Memo to Housing and Redevelopment Commission dated June 8, 1988. 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLDTION NO: 110 A RESOLDTION OF THE HOUSING AND REDEVEIOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A LFASE FOR PROPERTY AT 3045.65 AND 67 STATE STREET NHEREAS, the Housing and Redevelopment Commission of the City of Carlsbad has determined it necessary and in the public interest to construct a parking lot at 3045, 65 and 67 State Street; and WHEREAS, the Commission desires to lease property from Mrs. Jean BaUmgartner; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad as follows: 1. That the above recitations are true and correct 2. That the property lease attached hereto as Exhibit A is hereby approved 3. That the Chairperson is hereby authorized to sign said lease on behalf of the City. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California, held on the 21st day of June, 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettlne & Larson NOES: None ABSENT: ABSTAIN: Council Member Mamaux ATTEST: Je?Pw ALETHA L. RAUTENERANZ, ci Clerk EXHIBIT A GROUND LEASE THIS GROUND LEASE (the "LeaselV) is made as of I 1988, by and between Mrs. Jean Baumgartner, ('@Ownerll), and the Housing and Redevelopment Commission (*@Lesseel*). 1. PREMISES. 1.1 General. Owner hereby leases to Leasee, and Leasee hereby hires from Owner, those certain premises (the "PremisesIt) described on Exhibit "AtI attached hereto consisting of approximately sixteen thousand and eighty seven (16,087) square feet of land located at 3045-65-67 State Street; APN 203-296-06, Carlsbad, California, on which a parking lot is to be constructed by Leasee in accordance with the Construction Improvements (as defined in Section 4). Upon completion of the parking lot, Leasee shall operate, manage, equip, landscape, police, light, repair, clean and maintain the Premises in a neat, clean and orderly condition, and shall repair any damage thereto in accordance with the 2. TERM. 2.1. Term. Lease Years commencing tVTermtl). terms of this Lease. The term of this Lease shall be for twenty (20) on the Commencement Date as defined below (the 2.2 Commencement Date. The "Commencement Date" shall mean the date of approval of the Approved Lease Agreement by the Housing and Redevelopment Commission. A "Lease Year" hereunder is a period consisting of twelve (12) full calendar months commencing with the first day of a calendar month on or after the Commencement Date and ending one year thereafter. 3. RENTAL. 3.1 Rent. Beginning on the Commencement Date, Leasee shall pay to Owner as rent for each full calendar month from and after the Commencement Date the sum of three thousand eight five dollars ($3,085) per month during the Term subject to the increases to the rent set forth in this Section 3.2, for a minimum annual rent of Thirty seven thousand and twenty dollars ($37,020) the lfrentff). Rent shall be payable in advance upon the first day of each calendar month beginning on the commencement date. The rent for any fractional part of a month following the Commencement Date and the first day of the first full calendar month subsequent to the Commencement Date together with the first full calendar month of the Term shall be payable within fourteen (14) days after the Commencement Date. All rents payable by Leasee hereunder shall be paid in lawful money of the United States without deduction or offset and shall be paid to Owner at it address pursuant to Section 14.2, or at such other place as Owner may from time to time direct in writing. It is the intent of the parties that the rent provided herein shall be absolutely net to Owner and that, except as in this Lease other expressly provided, Leasee shall pay all costs, charges and expenses of every kind and nature against the Premises which may arise or become due during the Term and which, except for the execution and delivery hereof, would or could have been payable by Owner. 3.2 Rent Increases. The rent payable under the Lease shall be minimum of the rent payable pursuant to Section 3.1 above increased by the method set forth below. (a) Cost of Livins Increases. The annual rent required pursuant to Section 3.1 shall be adjusted upward as of the expiration of the thirty-sixth (36th) full calendar month of the term and each thirty-sixth (36th) month period thereafter as provided herein. The adjustment shall be calculated upon the basis of the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index of Urban Wage earners and Clerical Workers, San Diego Statistical Metropolitan Area Average, all items (1967 = 100) (the ffIndexff). The Index published and in effect ninety (90) days prior to the Commencement Date shall be considered the Base Year Index for Lease Years 4 through Lease Year 20 (the Base Year Index is sometimes referred to as the ffBaseff). At each ffAdjustment Date: (i.e., the first day of the first month of each Lease Year beginning with Lease 4 and continuing through Lease 20), the rent otherwise due shall be adjusted by the percentage increase, if any, between the Base and the Index published and in effect ninety (90) days preceding the Adjustment Date. In no event shall the rent following an Adjustment Date be less than 2 the rent in effect immediately preceding the previous Adjustment Date or the Base. In addition, the adjusted rent for any given Lease Year beginning with Lease Year 3 shall not exceed the rent payable in the immediately preceding Lease Year by more than six percent (6%). When the adjusted rent is determined, Owner shall give Leasee written notice of same indicating how the new figure was computed. If at any Adjustment Date the Index shall not exist in the same format as recited in this Section, Owner shall substitute any official index published by the Bureau of Labor Statistics, or successor or similar governmental agency I as may then be in existence and which is, in Owner's reasonable discretion, most nearly equivalent to the Index. 3.3 costs. Leasee shall pay as additional rent in the manner and at the time provided all reasonable costs and expenses incurred in the operation, repair and maintenance of the Premises during the Term. Such costs and expenses shall include, without limiting the generality of the foregoing, the maintenance and repairs, resurfacing, painting, restriping, cleaning, sweeping and janitorial services; planting and landscaping,; trash removal and sewer charges, if any; lighting and other utilities; directional signs and other markers and bumpers; personnel to implement such services and to police the Premises by Leasee. 4. CONSTRUCTION OF IMPROVEMEMTS. 4.1 Construction Covenants. Leasee shall, subject to the terms and conditions hereafter set forth, at Leasee's sole cost and expense, cause to be constructed and completed a surface parking lot covering the entire Premises, together with the walkway, facilities, utilities and landscaping substantially in accordance with the plans and specifications to be provided approved by the City of Carlsbad (the ffCityff). Said new parking lot, walkways, facilities, utilities and landscaping are sometimes referred to herein, collectively as the ffImprovements.ff 4.2 Indemnity and Insurance. Leasee shall indemnify and save Owner harmless from all claims, demands, causes of action or suits of whatever nature arising out of the labor and materials furnished by Leasee in respect of the construction of Improvements and from all 3 laborers', materialmens' and mechanics' liens upon the Premises arising out of the performance by Leasee or its contractors, subcontractors, laborers, or materialmen of its obligations or of any other improvements made upon the Premises by Leasee. 5. UTILITIES. From and after the Commencement Date, Leasee shall pay for all gas, electricity, light, heat, power or other services used, rendered or supplied upon or in connection with the Premises, and shall indemnify Owner against any liability or damages on such account. Leasee shall install at its expense, separate meters for such utilities. 6. USE AND COWPLIANCE WITH LAW. 6.1 gsJ. Leasee shall use and occupy the Premises solely for the purposes of conducting and carrying on the operation of a surface parking lot and for no other purpose except as may be approved in writing by Owner. 7. MAINTENANCE AND REPAIRS. 7.1 Maintenance and Repairs. Leasee shall not cause or permit any waste, damage or injury to the Premises. Leasee, at its sole expense, shall keep the Premisses and all improvements thereon clean and in good condition, reasonable wear and tear excepted, and shall make all repairs, replacements and renewals, whether ordinary or extraordinary, seen or unforeseen, including all structural repairs necessary to maintain the Premises and Improvements. All repairs, replacements and renewals shall be at least equal in quality in material and workmanship to that originally existing in the Premises and Improvements as of the date of completion of the Improvements by Leasee. Owner shall not be required to make any repairs, alterations or improvements to the premises. 7.2 SURRENDER AT END OF TERM. At the term of surrender, or upon any prior time agreed to by Owner and Leasee, Leasee shall have first right of refusal to purchase said property from Owner. Value of property shall be established by an appraisal prepared by a M.I.A. certified appraiser as selected by Owner and Leasee. If Leasee does not elect to purchase property, Leasee shall surrender the premises in good order, condition and repair at the expiration of the term, 4 together with any permanent improvements thereon made by Leasee, reasonable use and wear excepted. 8. ALTERATIONS AND ADDITIONS. Leasee shall have the right to make changes or alterations in the Improvements located on the Premises, subject to the following conditions: (a) Leasee shall not make any alterations, structural or otherwise, which will decrease the value of the Premises, or convert any building into a structure which is not a complete, self-contained operating unit. (b) All buildings, additions, rebuildings, replacements and improvements or appurtenances on or in the Premises which may be erected, installed or affixed by Leasee on or in the Premises during the Term shall, at the end of the Term be deemed a part of the Premises, except that all trade fixtures and trade equipment (as defined in this Lease) installed by Leasee shall be and remain the property of Leasee. (c) Owner shall in no event be required to make any alterations, rebuilding, replacement, changes, additions or improvements or repairs to the Premises during the Term except as specifically provided in this Lease. 9. INSURANCE AND INDEMNITY. 9.1 Waiver of Subrosation. Leasee and Owner each, to the extent permitted by the insurance policies maintained by them, hereby waive any and all rights of recovery against the other, or against the partners, officers, employees, agents and representatives of the other, for loss or damage is insured against under any insurance policy in force at the time of such loss or damage. Leasee shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 9.2 Indemnity. Leasee shall indemnify and hold Owner harmless from and against any and all claims arising from Leasee's construction of the Improvements and use of the Premises, or from the conduct of Leasee's business or from any activity, work or things done, permitted or suffered by Leasee in or about the Premises and shall 5 -. further indemnify and hold harmless Owner from and against any and all claims arising from any breech or default in the performance of any obligation on Leaseels part to be performed under the terms of these Lease, or arising from any negligence of the Leasee, or any of Leasee's agents, contractors or employees, and from and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon; provided, however that Owner shall promptly notify Leasee in writing of any claim or action filed against Owner as to which indemnity is sought hereunder and Leasee and/or its liability carrier shall have the right to designate council to undertake Owner's defense. Owner may, at its own expense, retain separate counsel to review the defense undertaken by counsel selected by Leasee or its carrier and such insurance counsel shall provide Owner and its separate counsel with copies of all pleadings, notices and correspondence concerning such litigation during the pendency of such litigation. 10. END OF TERM; HOLDING OVER. 10.1 Surrender of Premises. Upon the expiration of the Term or upon its earlier termination for any reason whatsoever, Leasee shall surrender and deliver up the Premises and, unless directed otherwise by Owner in writing, all Improvements thereon, except movable fixtures and personal property installed therein by Leasee or its subtenants, in good order, condition and repair except for reasonable wear and tear and except for damage caused by fire or other casualty; provided, however, that if Leasee shall surrender and deliver up the Premises and Improvements to Owner without having repaired or restored any such damage done by fire or other casualty, Leasee shall concurrently therewith assign to Owner all of Leasee's right or claims to any insurance proceeds resulting from such fire or other casualty and Leasee shall repair any damage resulting from such fire or other casualty. Leasee shall repair any damage resulting from the removal by Leasee or any subtenant of Leasee of any trade fixture or personal property not required to be so surrendered. 10.2 Holdincr Over. Upon the expiration of the Term, should Leasee remain in possession of the Premises with Owner's consent, 6 expressed or implied, such holding over shall be deemed to have created only a tenancy from month to month, terminable by either party upon thirty (30) days' written notice to the other at a monthly rental equal to one hundred percent (100%) of the Rent payable for the last full month of the Term. 11. QUIET ENJOYMENT. Upon payment by Leasee of the rents provided herein, and upon the observance and performance of all of the covenants, terms and conditions on the part of Leasee to be performed hereunder, Owner covenants and warrants that Leasee may peaceably and quietly hold and enjoy the Premises for the Term. 12. TRANSFER OF Owner's INTERST. In the event of any transfer or transfers of Owner's interest in the Premises, the transferror shall, upon written notice to Leasee, be automatically relieved of any and all obligations on the part of Owner accruing from and after the date of such transfer. The transferee shall be deemed, without further act or agreement, to have assumed and agreed to carry out any and all of the covenants and obligations of Owner and be entitled to any rights or benefits conferred upon Owner under this Lease. 13. TAXES. The Owner shall hold harmless the Leasee and the City from and against any property taxes assessed on the Leased Premises. The Owner shall additionally pay tax on its interest in the Leased Premises calculated on the basis of fee Ownership, or based upon its possessory interest. 14. MISCELLANEOUS. 14.1 Waiver. The waiver by either Owner or Leasee of any breach of any term, condition or covenant contained herein shall not be deemed a waiver of such term, condition or covenant on any subsequent breach of the same or any other term, condition or covenant contained herein. 14.2 Notices. All notices, demands or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either Owner or Leasee to the other shall be deemed to have been given when in writing and personally delivered or if mailed on the second (2nd) day after deposited in the United States mail, certified or registered, postage prepaid, and addressed to the respective parties 7 at their addresses set forth below. Owner or Leasee may from time to time, by written notice to the other party designate a different address which shall be substituted for the one specified herein. Owner Mrs. Jean Baumgartner 6539 Corinthia Street Carlsbad, Ca. 92009 Leasee City of Carlsbad Housing and Redevelopment Commission 2965 Roosevelt St., Suite B Carlsbad, CA 92008 14.3 Exhibits. All Exhibits referred to in this Lease and attached hereto are hereby incorporate herein by reference and made a part hereof as though herein set forth verbatim. 14.4 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease and of each and every term, covenant and condition hereof which relates to a date or period of time. 14.5 Construction. The language in all parts of this Lease shall in all respects be construed as a whole, according to its fair meaning, and not strictly for or against either Owner or Leasee. The article headings in this Lease are for convenience only and are not to be construed as a part of the Lease or in any way limiting or amplifying the provisions hereof. 14.6 Effect of Invaliditv. If any term or provision of this Lease or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of its term and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. No acquisition by Owner of all or any of the interest of Leasee in or to the Premises or the Improvements, and no acquisition by Leasee of all or any interest of Owner in or to the Premises shall constitute or work a merger of the respective interest, unless expressly provided for. 14.7 Successors and Assisns. This Lease and the covenants and 8 conditions contained herein shall be binding and inure to the benefit of and shall apply to the successors and assigns of Owner and to the permitted successors and assigns of Leasee, and all references in this Lease to ffLeaseeff or ffOwnerff shall be deemed to refer to an include all permitted successors and assigns of such party. 14.8 Consents. Except as expressly provided in this Lease, where the consent or approval of Owner or Leasee is required in this Lease, such consent or approval will not be unreasonably withheld nor will the party giving such consent require the payment of any consideration for the giving thereof. Owner's request for indemnity by Leasee and/or its successor as a condition to granting such consent shall not be considered as requiring payment of any consideration for purposes of this Section. 14.9 Entire Asreement. This Lease and the exhibits hereto contain the entire agreement of Owner and Leasee with respect to the matters covered hereby, and no other agreement, statement of promise made by either Owner or Leasee, which is not contained herein, shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of the Lease may be amended or added to except by an agreement in writing signed by Owner and Leasee. 14.10 Memorandum of Commencement Date: Memorandum of Lease. Within thirty (30) days following the Commencement Date, Owner and Leasee shall execute and acknowledge a supplemental agreement setting forth the Commencement Date and the termination date of this Lease. The parties agree to execute, acknowledge and record a memorandum of lease for this Lease concurrent with its execution or at any other time as required by any party hereto. 14.11 Quitclaim Deed. At the expiration or earlier termination of this Lease, Leasee shall execute, acknowledge and deliver to Owner, within five (5) days after written demand from Owner to Leasee, any guitclaim deed or other document required by any reputable title company to remove the cloud of this Lease from the title to the real property which is the subject of this Lease. 14.12 Number and Gender. Whenever the singular number is used in 9 this Lease and when required by the context, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders, and the word ffperson If shall include corporation, firm or association. IN WITNESS WHEREOF, the parties hereto have executed this Ground Lease as of the date set forth above. Wwnern “Leasee” MRS.JEANBAUMGARTNER HOUSING MD REDEVEIXXMENT COMMISSION CITY OF CARLSBAD By: By: Owner CLAUDE A. LEWIS, CHAIRPERSON APPROVED AS TO FORM: VINCENT F. BIONDO, CITY ATTORNEY 10 EXHIBIT A DESCRIPTION OF PROPERTY THE LAND REFERRED TO IN THIS LEASE IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO AND IS DESCRIBED AS FOLLOWS: LOTS 4,5 AND 6 OF SUBDIVISION OF A PORTION OF TRACT NO. 106 CARLSBAD LANDS, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER 19, 1919, TOGETHER WITH THE SO UTREASTERLY HALF OF THE SOUTHWESTERLY 50.00 FEET OF THE ALLEY ADJOINING SAID LOT 4 ON THE NORTHWEST AS SAID ALLEY WAS VACATED AND CLOSED TO PUBLIC USE BY ORDER OF THE BOARD OF SUPERVISORS FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, OCTOBER 28, 1926 IN BOOK 1280, PAGE 216 OF DEEDS. -. -EXHlRl LuCATlON MAP PROPOSED LEASED SITE . > n w - n 0 n m * 2 BAUMGARTNER PROPERTY #045, 65 AND 67 STATE’ST. EXHIBIT June 8, 1988 TO: HOUSING AND REDEVELOPMENT COMMISSION FROM: Housing and Redevelopment Director PROPOSED PARKING PLAN FOR ELM AVENUE/CARLSBAD BOULEVARD STREETSCAPE The proposed lease of property at 3045, 65 and 67 State Street is the first in a series for lease/purchase/agreements that will be presented to the Commission. The current sites being considered, including the Baumgartner lease, are as follows: NAME/OWNER LOCATION PARKING SPACES Baumgartner 3045 State Street 54 AT&SF Right-of-Way West of Railroad, north of Oak 36 Depot Redesign 400 Elm Avenue 11 Sonny's 561 Elm Avenue 16 Union Church 3021 Harding Street 80 TOTAL 197 Other sites are being reviewed/analyzed for possible parking lots which will be presented to the Commission. CS:PAC:al Attachment , LikATlON MAP - PROPOSED PARKING PLAN E n w ;; 0 n m w z