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.
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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.
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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.
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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