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HomeMy WebLinkAbout1993-12-14; Housing & Redevelopment Commission; 243; Public Parking Sublease AgreementHOUSING AND - EDEVELOPMENT COMMISt -)N AGENDA iB#a TITLE: rllTG. jtikV+93 APPROVING PUBLIC PARKING SUBLEASE AGREEMENT BETWEEN HOUSING AND REDEVELOPMENT COMMISSION IEPT. RED* AND FISH HOUSE FOODS INC. RECOMMENDED ACTION: CITY MGRiii$ ADOPT Housing and Redevelopment Commission Resolution No. &!Y / APPROVING an agreement between the Commission and Fish House Foods Inc. to sublease a total of eleven (11) parking spaces within the public parking lot located at 3045-65-67 State Street (known as Baumgartner Lot) for the Fish House Vera Cruz Restaurant and Market located at 417 Carlsbad Village Drive. ITEM EXPLANATION: On January 5, 1993, the Housing and Redevelopment Commission approved Major Redevelopment Permit No. 92-10 and Coastal Development Permit No. 92-08 approving the demolition of an existing retail building and construction of a new 3,346 square foot Fish House Vera Cruz Restaurant and Fish Market. The permit was conditioned to require the applicant, Fish House Foods, Inc., to provide twenty-six (26) parking spaces by constructing a ten (10) space parking lot on the site, five (5) spaces on the adjacent public parking lot within the railroad right- of-way, and the subleasing of eleven (11) spaces on an adjacent (Baumgartner) lot from the Carlsbad Redevelopment Agency. This lease arrangement was reviewed and approved by the City Council acting as the Housing and Redevelopment Commission at the meeting of September 8, 1992. The Fish House Vera Cruz Restaurant is currently operating under a temporary Certificate of Occupancy pending approval of the attached parking sublease agreement by the Housing and Redevelopment Commission. Once the Commission has approved the agreement and it has been executed, Fish House Vera Cruz will be issued a final Certificate of Occupancy to continue its operations. The basic conditions of the agreement are as follows: 0 Fish House agrees to sublease a total of eleven (1 l), non-exclusive public parking spaces from the Redevelopment Agency on property located at 3045-65-67 State Street; 0 Fish House shall make a monthly rental payment to the Redevelopment Agency in an amount which equals twenty-two percent (22%) of the base rent payable by the Agency to the property owner. This amount equals $808.34 per month as of this date; and, 0 The term of the sublease agreement is for a period of five (5) years. The agreement may be renewed at the end of each five (5) year period for an additional five (5) years. At this time, Fish House Foods, Inc. would like to sublease the eleven (11) public parking spaces from the Carlsbad Redevelopment Agency as set forth in the attached sublease agreement. Therefore, staff is recommending that the Housing and Redevelopment Commission approve the sublease agreement (Exhibit 2) and authorize staff to collect the monthly sublease payment and deposit it into the Carlsbad Redevelopment Agency’s account. . AGENDA BILL # 3 y 3 PAGE 2 The options for using the funds collected as a result of the sublease include, but are not limited to the following: 1. The funds may be used for general administration of the Redevelopment Agency (i.e., salaries, supplies, etc.); or, 2. The funds may be used specifically to offset the Redevelopment Agency’s costs for leasing the subject parking lot. The Agency currently makes a monthly lease payment of $3,674. 29 to provide the parking lot for the general public. The sublease payment will cover twenty two percent (22%) of the Agency’s lease costs; or, 3. The funds may be used to establish a Parking Trust Fund. These set-aside funds could be used at some future date to acquire property for public parking lots and/or construct improvements to existing or future public parking lots to serve the Village Redevelopment Area. Staff is recommending that the Housing and Redevelopment Commission approve Option 2 and authorize staff to collect the monthly sublease payment and deposit it into the Carlsbad Redevelopment Agency’s Account to be used to offset current parking lot lease costs related to the subject property. FISCAL IMPACT: With approval of the sublease, Fish House Foods, Inc. will remit a monthly payment to the Carlsbad Redevelopment Agency equal to twenty-two percent (22%) of the total lease cost for the public parking lot located at 3045-65-67 State Street (Baumgartner Lot). The 22% sublease payment represents the number of spaces needed by Fish House (11) divided by the total number of parking spaces (50) within the subject parking lot. If the Agency’s lease payment increases due to an increase in the Consumer Price Index (CPI) and/or adjusted Market Rental Value, as provided for in the Agency’s lease agreement with the property owner, Fish House will pay 22 % of the applicable lease payment. At this time, the Agency’s lease payment is $3,674.29 per month. Therefore, Fish House will be required to make a monthly sublease payment of $808.34 per month, or $9,700.08 per year. It is staff’s recommendation that these sublease payments be used to offset the monthly lease costs of the Redevelopment Agency for the subject public parking lot. EXHIBITS: l- Housing and Redevelopment Commission Resolution No.&Y 1 approving the public parking sublease agreement between the Housing and Redevelopment Commission and Fish House Foods, Inc. 2- Public Parking Sublease Agreement. 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 I HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION ~0. 241 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING A PUBLIC PARKING SUBLEASE AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND FISH HOUSE FOODS, INC. WHEREAS, the Housing and Redevelopment Commission, at their meeting on January 5, 1993 approved Major Redevelopment Permit No. 92-10 and Coastal ~ Development Permit 92-08 approving the demolition of an existing retail building and 1 construction of a new 3,346 square foot Fish House Vera Cruz Restaurant and Fish Market; and, . WHEREAS, the Housing and Redevelopment Commission conditioned the subject permit(s) to require the applicant, Fish House Foods, Inc., to provide twenty- six (26) parking spaces by constructing a ten (10) space parking lot on the restaurant site, five (5) spaces on the adjacent public parking lot within the railroad right-of-way, and the use of eleven (11) parking spaces on property located within close proximity to the subject project; and, WHEREAS, the Housing and Redevelopment Commission agreed on September 8, 1992 to sublease eleven (1 1) non-exclusive, public parking spaces on an adjacent lot located at 3045-65-67 State Street (Baumgartner property), to Fish House Foods, Inc. to assist the applicant in meeting its parking requirement; and, WHEREAS, the property owner, Ms. Jean Baumgartner, of the subject leased public parking lot has agreed to the sublease agreement between the Carlsbad Redevelopment Agency and Fish House Foods, Inc. 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 28 27 28 HRC RESO NO. 241 PAGE 2.; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: A) 8) Cl D) That the above recitations are true and correct. That the Housing and Redevelopment Commission hereby approves the public parking agreement with Fish House Foods, Inc. to sublease a total of eleven (1 1) non-exclusive parking spaces within the public parking lot located at 3045- 65-67 State Street (known as Baumgartner lot) for the purposes of providing parking for the Fish House Vera Cruz Restaurant and Fish Market located at 417 Carlsbad Village Drive. That the Finance Director is hereby authorized to collect the monthly sublease payments from Fish House Foods, Inc. and to deposit the funds into the Carlsbad Redevelopment Agency’s Account. . That the deposited funds shall be used by the Carlsbad Redevelopment Agency to offset the Redevelopment Agency’s costs for leasing the subject parking lot from the property owner. PASSED, APPROVED, AND ADOPTED at a special meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California, held on the 14thday of I)ECEMBER, 1993, by the following vote, to wit: AYES: Commissioners Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSENT: None ABSTAIN: None ATTEST: CITY OF CARLS.BAti PUBLIC PARKING LOT SUBLEASE AGREEMENT THIS SUBLEASE AGREEMENT, made and entered into as of the 11th day of DECEMBER , 1994, by and between the CITY OF CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, hereinafter referred to as “Lessee”, and Carlsbad Fishhouse, Inc., hereinafter referred to as “Sublessee”. RECITALS WHEREAS, on January 5, 1993, the Lessee approved a Major Redevelopment Permit to allow Sublessee ,to construct a restaurant and fish market on property located at 417 Carlsbad Village Drive within the Village Redevelopment Area of the City of Carlsbad; and WHEREAS, as a condition of approval of Redevelopment Permit 92-10, the Lessee and Sublessee agreed to enter into a Sublease Agreement for the purposes of providing parking opportunities for the restaurant and fish market; and WHEREAS, the Sublessee agrees to Sublease a total of eleven (11) parking spaces from the Lessee on leased property located at 3045-65-67 State Street all upon the terms and conditions of this Sublease; and WHEREAS, the owner of said Premises, Mrs. Jean L. Baumgartner, herein referred to as “Owner”, has agreed to permit said Sublease, pursuant to the Ground Lease dated as of July 27, 1988, between Lessee and Owner (“Master Lease”). 1 Rev. October 20, 1993 NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, the Lessee and Sublessee hereby agree as follows: 1. PREMISES. The Lessee hereby Subleases to Sublessee eleven (11) parking spaces from those certain premises (the “Premises”) described on Exhibit “A” attached hereto located at 3045-65-67 State Street; APN 203-296-06, Carlsbad, California, where a public parking lot is located. The eleven spaces will not be in a specific location within the Premises. The Lessee shall operate, manage, equip, landscape, light, repair, clean and maintain the Premises in a neat, clean and orderly condition, in compliance with all laws, and shall repair any damage thereto which may occur as a result of Sublessee’s use of said Premises. Sublessee agrees to allow the public to use the Premises in the same manner as a public parking lot. Sublessee agrees not to impede this public use in any manner. 2. TERM. 2.1 Term. The term of this Sublease shall be for five (05) Lease Years commencing on the Commencement Date as defined below (the “Term”). If Sublessee permanently ceases the use described in Redevelopment Permit 92- 10, Sublessee may terminate this sub-lease by delivering written notice to Lessee at least thirty (30) calendar days prior to the effective date of termination. Provided, however, such termination shall not affect the indemnity agreement in paragraph 4. 2.2 Commencement Date. The Commencement Date shall be the date of issuance of the Certificate of Occupancy by the City of Carlsbad to the Sublessee. The “Lease Year” is a period consisting of twelve (12) full calendar months 2 Rev. October 20, 1993 - commencing with the first day of a calendar month on or after the Commencement Date and ending one year thereafter. 3. RENTAL. Beginning on the Commencement Date, Sublessee shall pay to the ’ Lessee as rent for each full calendar month from and after the Commencement Date an amount equal to twenty-two percent (22%) of the base rent payable by the Lessee to the premises owner under the present or future lease agreement between the Lessee and Owner, including rental adjustments, commencing within fourteen (14) days of the Commencement Date and continuing monthly thereafter within fourteen (14) days of receipt of Lessee’s detailed written statement of rent due. 4. INDEMNITY. Sublessee shall defend and indemnify and save harmless the Owner and Lessee from all claims, demands, causes of action or suits of whatever nature arising out of the Sublessee’s use of said Premises and/or use of said Premises by Sublessee’s employees, agents, independent contractors, invitees or business patrons, and from and against all costs, attorney’s fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon. 5. USE AND COMPLIANCE WITH LAW. Sublessee 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 the Lessee. Lessee covenants that during the Term, the Premises shall be used as a surface parking lot and for no other purpose. 6. MAINTENANCE AND REPAIRS. Sublessee shall not cause or permit any waste, damage or injury to said Premises. If damage is caused by Sublessee or Sublessee’s 3 Rev. October 20, 1993 employees, agents, contractors, subcontractors, laborers, then all repairs, replacements and renewals shall be at the Sublessee’s expense and at least equal in quality in material and workmanship to that originally existing on said Premises as of the date of commencement of the Sublease between the Lessee and Sublessee. 7. ALTERATIONS AND ADDITIONS. Sublessee shall not have the right to make changes or alterations to said Premises, nor in any event shall the Owner and Lessee 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 the lease agreement between the Lessee and Owner. 8. INSURANCE _---- The Sublessee shall file a Certificate of Insurance with the Owner and Risk Manager of the City of Carlsbad in the amount of one million dollars ($1 ,OOO,OOO) and shall indicate the Owner, Lessee and City of Carlsbad are an additional insured. A valid certificate shall be provided annually to the Owner and Risk Manager of the City of Carlsbad and be in effect for each day of the term of this Sublease. 9. RENEWAL/TERMINATION OF SUBLEASE. 9.1 Renewal. If agreed upon by both the Lessee and Sublessee, this Sublease Agreement may be renewed at the end of each five-year term for an additional five (05) Lease Years. 9.2 Termination. Termination of this Sublease by either party does not relieve the Sublessee from the requirements of the conditions of Redevelopment Permit 92-l 0. The Sublease will automatically terminate upon a termination of the Lessee’s 4 Rev. October 20, 1993 lease agreement with the Owner or termination of-Redevelopment Permit 92-l 0, or if Sublessee is no longer required to use the Premises in satisfaction of the parking requirements thereof. 10. SUBLESSEE’S OBLIGATIONS. 10.1 Parking Requirements. The parking requirements provided for in Redevelopment Permit 92-l 0 are those of the Sublessee and the Lessee shall not for any period during which the Sublessee operates said business be responsible for any costs in providing said parking. Unless otherwise approved by Lessee, Sublessee’s obligation to provide parking shall continue after this Sublease is terminated, for whatever reason, or the Lessee exercises its option to purchase said Premises. 10.2 Compliance with Citv Ordinances and Reoulations. Nothing in this Sublease shall affect or waive the obligations of the Sublessee as stated in Redevelopment Permit 92-l 0 or any other City or Lessee permit or approval, or relieve the Sublessee from obligation to comply with City ordinances and regulations. 11. QUIET ENJOYMENT. Upon payment by Sublessee of the rents provided herein, and upon observance and performance of all of the covenants, terms and conditions on the part of the Sublessee to be performed hereunder, Lessee covenants and warrants that patrons and employees of Sublessee may peaceably and quietly enjoy the use of said Premises for parking spaces during the term of this Sublease. 12. MISCELLANEOUS. 12.1 Waiver. The waiver by either the Lessee or Sublessee of any breach of any term, condition or covenant contained herein shall not be deemed a waiver of 5 Rev. October 20, 1993 such term, condition or covenant on any subsequent breach of the same or any other term, condition or covenant contained herein. 12.2 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 the Lessee or Sublessee to the other shall be deemed to have been given when in writing and personally delivered or if mailed as certified or registered, and addressed to the respective parties at their addresses set forth below. The Lessee or Sublessee 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: LESSEE SUBLESSEE City of Carlsbad Housing and Redevelopment Commission c/o Finance Department 1200 Carlsbad Village Drive Carlsbad, CA 92008 Carlsbad Fishhouse, Inc. 1229 Linda Vista Drive San Marcos, CA 92069 Attn: Mr. Ron Butler 12.3 Exhibits. All Exhibits referred to in this Sublease and attached hereto are hereby incorporated herein by reference and made a part hereof as though herein set forth verbatim. 12.4 Time of Essence. Time is here,by expressly declared to be of the essence of this Sublease and of each and every term, condition and covenant hereof which relates to a date or period of time. 12.5 Construction. The language in all parts of this Sublease shall in all respects be construed as a whole, according to its fair meaning, and not strictly for or against either the Lessee or Sublessee. The article headings in this Sublease are 6 Rev. October 20, 1993 for convenience only and are not to be construed as a part of the Sublease or in any way limiting or amplifying the provisions hereof. 12.6 Effect of Invaliditv. If any term or provision of the Sublease or the application thereof to any person or circumstances shall, or any extent, be invalid or unenforceable, the remainder of this Sublease, 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 Sublease shall be valid and enforceable to the fullest extent permitted by law. 12.7 Successors and Assiqns. The Sublease and the conditions and covenants herein shall be binding and inure to the benefit of the Sublessee only and shall not apply to the successors and assigns of Sublessee, unless prior written approval is provided by the Lessee. No successor and assigns shall be permitted in conjunction with this Sublease arrangement between the Lessee and the Sublessee, without prior written approval by the Lessee. If approval is granted by Lessee, all references in this Sublease to Sublessee shall be deemed to refe,r to and include all , permitted successors and assigns of Sublessee. 12.8 Consents. Except as expressly provided in this Sublease, where the consent or approval of Lessee or Sublessee is required in this Sublease, 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. Lessee’s request for indemnity by Sublessee 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 7 Huv. Oclolwr 20, 1093 Section. 12.9 Entire Aqreement. This Sublease and ttie Exhibits hereto contain the entire agreement of the Lessee and Sublessee with respect to the matters covered hereby, and no other agreement, statement of promise made by either Lessee or ’ Sublessee, 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 Sublease may be amended or added to except by an agreement in writing signed by the Lessee’ and Sublessee. 12.10 Quitclaim Deed. At the expiration or earlier termination of this Sublease, Sublessee shall execute, acknowledge and deliver to Lessee, within five (05) days after written demand from Lessee to Sublessee, any quitclaim deed or other document reasonably required by any reputable title company to remove the cloud of this Sublease from the title to the real property which is the subject of this Sublease. IN WITNESS WHEREOF, the parties hereto have executed this Sublease as of the date set forth above. SUBLESSEE LESSEE Commission Carlsbad Fishhouse, Inc. Approved as to Form: &: &fLA- 8, /bLcz--L L? c.#$ I . Ronald R. Ball, City Attorney 8 Rev. October 20, 1993 EXHIBIT A DESCRIPTION OF PROPERTY THE LAND REFERRED TO IN THIS SUBLEASE 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 SOUTHEASTERLY 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. 1 of 1 Rev. October 20. 1993