HomeMy WebLinkAbout1995-06-13; Housing & Redevelopment Commission; 271; Carlsbad Village Microbrewery & Public House4 ‘9 ( : .:* ,~ p Cr..
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HOUSING AND f-DEVELOPMENT COMMISSI-I - AGENDA 6lLL+ UP ’
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TITLE: 1 APPROVING PUBLIC PARKING LEASE AGREEMENT
BETWEEN HOUSING AND REDEVELOPMENT COMMI!WON
IEPT. I-+/RED AND CARLSBAD VILLAGE MICROBREWERY AND PUBLIC
HOI JSE
RECOMMENDED ACTION:
ADOPT Housing and Redevelopment Commission Resolution No. 26 3 APPROVING
an agreement between the Commission and Carlsbad Village Microbrewery and Public House to
lease a total of seven (7) parking spaces within the public parking lot located at 630 and 632
Carlsbad Village Drive and 2970, 2976 and 2992 Roosevelt Street for the Carlsbad Village
Microbrewery and Public House located at 571 Carlsbad Village Drive.
ITEM EXPLANATION:
On March 28, 1995, the Housing and Redevelopment Commission approved Major
Redevelopment Permit No. 94-07 and Coastal Development Permit No. 94-08 approving the
renovation of an existing retail bakery building into a 4500 square foot Restaurant and
Microbrewery. The permit was conditioned to require the applicant, Carlsbad Village
Microbrewery and Public House to provide a total of forty-one (41) parking spaces by
constructing a thirty-four (34) space parking lot on the site and subleasing seven (7) spaces in
the Williams parking lot which is on the opposite (northeast) corner of the street from the
approved restaurant/microbrewery. This lease arrangement was recommended for approval by
the Design Review Board on March 1, 1995 and approved by the Housing and Redevelopment
Commission at the meeting of March 28, 1995.
Since the date of project approval, the Carlsbad Redevelopment Agency has decided to pursue
its option to purchase the property used for the subject public parking lot; this purchase option
was provided for in the Master Lease agreement between the Owner, Louise Williams, and the
Carlsbad Redevelopment Agency. The purchase of the property will be complete by the end of
May, 1995. As a result of this acquisition, the Carlsbad Redevelopment Agency will become the
owner of the property. Therefore, the previously described “sublease” has been converted to a
simple “lease” of public parking spaces from the Agency directly.
LEASE AGREEMENT
The Carlsbad Village Microbrewery and Public House will not be allowed to obtain their
Certificate of Occupancy to open for business until this Lease agreement has been approved and
executed by the Housing and Redevelopment Commission. The Lease agreement will be executed
upon closing of escrow on the subject property.
The basic conditions of the agreement are as follows:
a Carlsbad Village Microbrewery and Public House agrees to lease a total of seven (7),
non-exclusive public parking spaces from the Redevelopment Agency on property located
at 630, 632 Carlsbad Village Drive and 2970, 2976 and 2992 Roosevelt Street;
0 Carlsbad Village Microbrewery and Public House shall make a monthly rental payment
to the Redevelopment Agency in the amount of $565.50 per month as of this date. After
the first two (2) years of the lease, the monthly rent amount shall be adjusted upward on
an annual basis, as appropriate, according to increases in the Consumer Price Index; and,
AB# &ll Page 2
0 The term of the lease agreement is for a period of ten (10) years. The agreement may be
renewed at the end of each ten year period for an additional ten (10) years.
The agreement is “property specific” which means that it relates directly to the public parking
lot located on the northeast corner of Carlsbad Village Drive and Roosevelt Street. However, if
for any reason the parking at the identified property should become unavailable, the agreement
includes a provision which allows the Agency to substitute comparable public parking spaces to
maintain the lease agreement with the Carlsbad Village Brewery and Public House.
Although the lease agreement is property specific, it is important to note that there are nearly 400
public parking spaces total provided within 10 lots throughout the Village Area. All of the
parking spaces are available for patrons of local businesses, including the subject restaurant and
microbrewery. Currently, the parking lots are not being fully utilized on a regular, on-going
basis. So, there is the ability to lease a portion of these public parking spaces without creating
an adverse impact on the availability of this parking.
PROPOSED PARKING IN-LIEU FEE PROGRAM
Due to proposals under consideration as part of the new Master Plan and Implementation Strategy
for the Village Redevelopment Area, a “Parking In-Lieu Fee Program” may be established which
will allow property owners/project applicants within the Village Redevelopment Area to pay a
one-time fee for parking. This program would allow property owners/applicants to “buy out” of
a given portion of their on-site parking requirement based on the adequacy of, and proximity to,
public parking facilities in the area. A feature of the proposed fee program will require an annual
utilization study of the public parking facilities within the Village Redevelopment Area. If the
utilization rate of the public parking facilities exceeds a pre-determined rate (i.e., SO%), the
program would be temporarily discontinued until additional facilities can be constructed to meet
the demand.
Staff currently uses a method similar to that noted above for determining the adequacy of public
parking prior to recommending a sublease/lease parking arrangement for approval by the Housing
and Redevelopment Commission. The subject parking lot has a peak utilization rate which
averages 51% . This peak rate is realized during weekdays. Since it is anticipated that peak usage
for the restaurant/microbrewery will be realized during the evening and weekend hours, staff does
not believe that the proposed lease of public parking spaces will have an adverse impact on the
availability of public parking in the area.
In effect, the philosophy guiding the establishment of the Parking In-Lieu Fee Program and/or
the use of the public parking sublease/lease arrangement is the same - public parking is provided
to facilitate private development, or changes in land use, within the Village Redevelopment Area.
In consideration of the fact that the Parking In-Lieu Fee Program will be presented for approval
within the next few months, a condition was placed on the Carlsbad Village Brewery and Public
House project which indicates that if, and when, the noted program is established, the applicant
will be allowed to either continue the lease arrangement with the Redevelopment Agency or
immediately pay the subject in-lieu fee as established by the City Council/Housing and
Redevelopment Commission. If the Carlsbad Village Microbrewery and Public House decides
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to pay the fee rather than continue the subject lease payments, the lease agreement will
automatically terminate upon payment of the applicable fee.
PURCHASE/DEVELOPMENT OF SUBJECT PROPERTY
In the “1995-2000 Carlsbad Village Redevelopment Implementation Plan “, the Housing and
Redevelopment Commission authorized funding to assist with the facilitation of private
commercial development at or near the corner of Roosevelt Street and Carlsbad Village Drive.
It was anticipated that this commercial development could occur on the property identified within
the subject parking lease agreement. If development is, in fact, initiated on this site prior to
expiration or termination of the lease agreement, a provision within the agreement states that the
Commission may designate comparable parking spaces within 300 feet of the project site as a
substitution for the originally identified spaces. For example, to satisfy the terms of the
agreement, the Commission could require the maintenance of at least seven (7) public parking
spaces within 300 feet of the restaurant/microbrewery at all times during any construction activity
on the parking site.
SUMMARY
At this time, the operators of the Carlsbad Village Microbrewery and Public House would like
to lease the subject seven (7) public parking spaces from the Carlsbad Redevelopment Agency
as set forth in the attached lease agreement. Therefore, staff is recommending that the Housing
and Redevelopment Commission approve the lease agreement (Exhibit 2) and authorize staff to
1) collect the monthly lease payment; 2) establish a “Public Parking” revenue account within the
Carlsbad Redevelopment Agency’s budget; and 3) to deposit the lease payments into the
established revenue account.
Staff is recommending that the funds placed into the “Public Parking Revenue Account” be used
solely for the purposes of providing public parking within the Village Redevelopment Area. The
funds may be used specifically to offset the Redevelopment Agency’s costs for maintaining the
subject lot and other public parking lot(s) in the Village. Or, the funds may be set-aside to be
used at some future date to acquire additional property for public parking lots and/or to construct
improvements to existing or future public parking lots to serve the Village Redevelopment Area.
FISCAL IMPACT:
With approval of the lease, Carlsbad Village Microbrewery and Public House will remit a
monthly payment to the Carlsbad Redevelopment Agency equal to $565.50 per month, or $6,786
per year. After the first two (2) years of the lease agreement, the monthly lease payment shall
increase on an annual basis according to applicable CPI increases.
EXHIBITS:
l- Housing and Redevelopment Commission Resolution No. % “I approving the public
parking lease agreement between the Housing and Redevelopment Commission and
Carlsbad Microbrewery and Public House.
2- Public Parking Lease Agreement.
3
HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 267
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF
THE CITY OF CARLSBAD, CALIFORNIA APPROVING A PUBLIC PARKING
LEASE AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY
AND CARLSBAD VILLAGE MICROBREWERY AND PUBLIC HOUSE.
WHEREAS, the Housing and Redevelopment Commission, at their meeting on
7 March 28, 1995 approved Major Redevelopment Permit No. 94-07 and Coastal Development
8 Permit 94-08 approving the renovation of an existing retail building and conversion to a new
9 4,512 square foot Restaurant and Microbrewery; and,
10 WHEREAS, the Housing and Redevelopment Commissionconditioned the subject
11 permit(s) to require the applicant, Carlsbad Village Microbrewery and Public House, to provide
12 forty-one (41) parking spaces by constructing a thirty-four (34) space parking lot on the
13 restaurant site and the use of seven (7) parking spaces on property located within close
14 proximity to the subject project; .and,
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WHEREAS, the Housing and Redevelopment Commission agreed on March 28,
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1994 to sublease/lease seven (7) non-exclusive, public parking spaces on a lot located at 630
and 632 Carlsbad Village Drive and 2970,2976 and 2992 Roosevelt Street to Carlsbad Village
Microbrewery and Public House to assist the applicant in meeting its parking requirement: and,
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and
Redevelopment Commission of the City of Carlsbad, California, as follows:
That the above recitations are true and correct.
That the Housing and Redevelopment Commission hereby approves the public
parking agreement with Carlsbad Village Microbrewery and Public House to
lease a total of seven (7) non-exclusive parking spaces within the public parking
lot located at 630 and 632 Carlsbad Village Drive and 2970, 2976 and 2992
Roosevelt Street for the purposes of providing parking for the Carlsbad Village
Microbrewery and Public House to be located at 571 Carlsbad Village Drive.
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HRC Resolution No. 2 6 7
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3. That the deposited funds shall be used by the Carlsbad Redevelopment
Agency to offset the Redevelopment Agency’s costs for maintaining the
subject parking lot and/or other public parking lots in the Village
Redevelopment Area and/or to provide new public parking facilities within
the Village Redevelopment Area.
special
PASSED, APPROVED, AND ADOPTED at a ~ZW meeting of the Housing
and Redevelopment Commission of the City of Carlsbad, California, held on the
13th Of JUNE , 1995 by the following vote to wit:
AYES: Commissioners Lewis, Nygaard, K&chin, Finnila
NOES: None
ABSENT: None
ABSTAIN: Commissioner
EXHIBIT 2
CITY OF CARLSBAD REDEVELOPMENT AGENCY
PUBLIC PARKING SPACES LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into as of the
X’uaL / sfh’dayof , 19%; by and between the CITY OF CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION, a municipal corporation, hereinafter referred to as “Owner”,
and CARLSBAD VILLAGE MICROBREWERY & PUBLIC HOUSE, a California Limited
Partnership,hereinafter referred to as “Lessee”.
a RECITALS
WHEREAS, on March 28, 1995, the Owner approved a Major Redevelopment Permit to
allow Lessee to construct a restaurant and microbrewery on property located at 571 Carlsbad Village
Drive within the Village Redevelopment Area of the City of Carlsbad; and
WHEREAS, as a condition of approval of Redevelopment Permit 94-07 and Coastal
Development Permit 94-08, the Owner and Lessee agreed to enter into a Public Parking Space Lease
Agreement for the purposes of providing parking opportunities for the approved restaurant and
microbrewery; and
WHEREAS, the Lessee agrees to lease a total of seven (07) public parking spaces from the
Owner on property located at 630 and 632 Carlsbad Village Drive and 2970/76/92 Roosevelt Street
all upon the terms and conditions of this Lease.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained
herein, Owner and Lessee hereby agree as follows:
1. PREMISES.
The Owner hereby leases to Lessee seven (07) public parking spaces from those certain
premises (the “Premises”) described on Exhibit “A” attached hereto located at 630 and 632 Carlsbad
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Village Drive and 2970/76/92 Roosevelt Street; APN 203-304-09 and 20, Carlsbad, California, where
a public parking lot is located. The seven parking spaces will not be in a specific location within the
Premises. The Owner 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 Lessee use of said Premises. Owner agrees to allow
the public to use the Premises in the same manner as a public parking lot subject to Leesee’s duty to
reimburse Lessor pursuant to Paragraph 6. Lessee agrees not to impede this public use in any
manner.
2. TERM.
2.1 The term of this Lease shall be for ten (10) Lease Years commencing on the Term.
Commencement Date as defined below (the “Term”). If Lessor determines that Lessee has
permanently ceased the use described in Redevelopment Permit 94-07, the Owner or Lessee may
terminate this lease by delivering written notice to other party 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 any
Certificate of Occupancy by the City of Carlsbad to the Lessee for the Carlsbad Village Brewery and
Public House as approved in Redevelopment Permit 94-07. No certificate of occupancy shall be
approved until this Lease has been approved and executed by the Owner..The “Lease Year” 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 (01) year thereafter.
3. RENTAL.
3.1 Rent. Beginning on the Commencement Date, Lessee shall pay to the Owner as rent for
each full calendar month from and after the Commencement Date the sum of Five Hundred Sixty-Five
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Dollars and Fifty Cents (1 5.50) per month during the Term subjec ) the increases to the rent set
forth in Section 3.2 of this Lease, for a minimum annual rent of Six Thousand Seven Hundred
Eighty-Six Dollars ($6,786). 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 Lessee shall be paid in lawful
money of the United States without deduction or offset and shall be paid to Owner at its address
pursuant to Section 12.2, or at such other place as Owner may from time to time direct in writing.
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:
The annual rent set forth in Section 3.1 shall be the rent for the first two (2) years of this Lease.
Assuming an increase in the cost of living, the annual rent shall be adjusted upward at the expiration
of the first two (2) year period and at the expiration of each Lease Year thereafter. The rent
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. Commencing at the end of Lease Year 2, the
rent adjustment shall be effective as of the first day of the first month following the expiration of each
lease year (the “Adjustment Date”). At each Adjustment Date, the annual rent due shall be adjusted
by the percentage increase, if any, between the rent charged the previous year (“Base”) and the Index
published and in effect ninety (90) days preceding the Adjustment Date. In no event shall the rent for
any lease year be less than the rent for the previous lease year. When the adjusted rent is determined,
Owner shall give Lessee 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
Rev 6114195 3
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governmental agency, as m. I [hen be in existence and which is, in 0~ J’S reasonable discretion
most nearly equivalent to the Index.
3.3 Credit Towards In Lieu Fee.
If this Lease is terminated in accordance with the provisions of Paragraph 9 prior to
expiration of its term, because Lessee has elected to pay an in lieu fee instead of providing parking
spaces pursuant to this Lease, then Lessee shall receive a credit for the rent paid under this agreement
in an amount up to, but not in excess of, such in-lieu fee. Owner is not obligated to make any refund
of payment of rents in excess of any future in-lieu fee to Lessee.
4. INDEMNITY.
Lessee shall defend and indemnify and save harmless the Owner
and the City of Carlsbad from all claims, demands, causes of action
or suits of whatever nature arising out of the Lessee’s use of said Premises and/or use of said
Premises by Lessee’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.
5. I Parking Lot Use. Lessee shall be allowed to jointly use and occupy the Premises solely
for the purposes of conducting and carrying on the operation of a surface public parking lot and for
no other purpose except as may be approved in writing by the Owner. Owner covenants that during
the Term, the Premises shall be provided as a surface public parking lot and for no other purpose,
unless approved by the Owner and subject to the conditions set forth in Section 5.2 of this Lease. The
Owner may, at its sole discretion, close the subject public parking lot at any time for special city-
approved events, maintenance activities and/or other events/activities which are deemed appropriate
by the City of Carlsbad or the Owner. The Owner shall provide the Lessee with a thirty (30) day
written notice prior to closure of subject public parking lot.
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5.2 Changes to Lob se. If the Owner approves an alternate L i‘or the Premises, which is
consistent with the Redevelopment Plan, Village Design Manual/Local Coastal Program, and Carlsbad
Village Redevelopment Implementation Plan, at any time during the Term of this Lease, the Owner
shall use its best efforts to designate a total of at least seven (7) comparable public parking spaces to
be located within a reasonable distance of the Carlsbad Village Brewery and Public House as a
substitution for said public parking spaces identified within this Lease. The Owner shall provide the
Lessee with a minimum sixty (60) day written notice prior to initiation of any substitution of public
parking spaces to be covered by this Lease. The Redevelopment Agency has no duty to provide
substitute parking spaces and failure to provide substitute parking spaces shall not relieve lessee of its
duty to provide sufticient parking spaces under section 10 of this lease, the terms and conditions of
the redevelopment permit or City parking ordinances and standards.
6. MAINTENANCE AND REPAIRS.
Lessee shall not cause or permit any waste, damage or injury to said Premises. If damage is
caused by Lessee or Lessee’s employees, agents, contractors, subcontractors or laborers, then all
repairs, replacements and renewals shall be at the Lessee’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 Lease between the Owner and Lessee.
7. ALTERATIONS AND ADDITIONS.
Lessee shall not have the right to make changes or alterations to said Premises, nor in any
event shall the Owner 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.
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8. INSURANCE.
The Lessee shall file a Certificate of Insurance with the Risk Manager of the City of Carlsbad
in the amount of one million dollars ($1 ,OOO,OOO) and shall indicate that the Carlsbad Redevelopment
Agency and City of Carlsbad are an additional insured. A valid certificate shall be provided annually
to the Risk Manager of the City of Carlsbad and be in effect for each day of the term of this Lease.
9. RENEWAL/TERMINATJON OF SUBLEASE.
9.1 Renewal. If agreed upon by both the Owner and Lessee, this Lease Agreement may
be renewed at the end of the ten-year term for an additional ten (10) Lease Years.
9.2 Termination. Termination of this Lease by either party does not relieve the Lessee
from the requirements of the conditions of Redevelopment Permit 94-07.
9.2.1 The Lease will automatically terminate upon termination of Redevelopment Permit 94-
07.
9.2.2 If City or Owner adopt an in lieu parking fee program for which Lessee is eligible to
participate, and under which Lessee elects to pay the in lieu fee applicable, Lessee may, upon thirty
(30) days notice, pay such fee and terminate this lease.
10. LESSEE’S OBLIGATIONS.
The parking requirements provided for in Redevelopment Permit 94-07 are those of the Lessee and
the Owner shall not for any period during which the Lessee operates said business be responsible for
any costs in providing said parking. Nothing in this Lease shall affect or waive the obligations of the
Lessee as stated in Redevelopment Permit 94-07 or any other City of Carlsbad permit or approval
granted for Lessee for the said project, or relieve the Lessee from its obligation to comply with City
ordinances and regulations.
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11. QUIET ENJOYIv,. .dT.
Upon payment by Lessee of the rents provided herein, and upon observance and performance
of all of the covenants, terms and conditions on the part of the Lessee to be performed hereunder,
Owner covenants and warrants that patrons and employees of Lessee may peaceably and quietly enjoy
the use of said Premises for non-exclusive public parking spaces during the term of this Lease.
12. MISCELLANEOUS.
12.1 Waiver. The waiver by either the Owner or Lessee 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.
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 Owner or Lessee 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 Owner or Lessee 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 LESSEE
City of Carlshad Carlsbad Village Microbrewery
blousing & Redevelopment Department & Public House
c/o Finance Department c/o Brett Redmayne-Titley
1200 Carl&ad Village Drive 1002 S. Tait Street
Carlsbad, CA 92008 Oceanside, CA 92054
12.3 Exhibits. All Exhibits referred to in this Lease 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 hereby expressly declared to be of the essence of this
Lease and of each and every term, condition and covenant hereof which relates to a date or period of
time.
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12.5 Constructl,,.l. The language in all parts of this Least ,,iall in all respects be construed
as a whole, according to its fair meaning, and not strictly for or against either the Owner and Lessee.
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.
12.6 Effect of Invaliditv. If any term or provision of the Lease or the application thereof
to any person or circumstances shall, or any extent, be invalid or unenforceable, the remainder of the
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.
12.7 Successors and Assigns. The Lease and the conditions and covenants herein shall be
binding and inure to the benefit of the Lessee only and shall not apply to the successors and assigns of
Lessee, unless prior written approval is provided by the Owner. No successor and assigns shall he
permitted in conjunction with this Lease arrangement between the Owner and Lessee, without prior
written approval by the Owner. If approval is granted by Owner, all references in this Lease to
Lessee shall be deemed to refer to and include all permitted successors and assigns of Lessee.
12.8 Consents. Except as expressly provided in this Lease, where the consent or approval
of Owner or Lessee 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 Lessee and/or its successor as a condition of
granting such consent shall not be considered as requiring payment of any consideration for purposes
of this Section.
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12.9 Entire Ag.-,ment. This Lease and the Exhibits attac. .J hereto contain the entire
agreement of the Owner and Lessee with respect to the matters covered hereby, and no other
agreement, statement or promise made by either Owner or Lessee, 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 the Owner and Lessee.
12.10 Quitclaim Deed. At the expiration or earlier termination of this Lease, Lessee shall
execute, acknowledge and deliver to Owner, within five (05) days after written demand from Owner
to Lessee, any quitclaim deed or other document reasonably 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.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date set forth
above.
LESSEE OWNER
Carlshad Village Microbrewery Housing and Redevelopment
By:
Gina Marsaglia
Approved as to Form:
w . City Attorney
,//AM NbBAL Dj
9
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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 1 THROUGH 5, IN BLOCK 38 OF THE AMENDED MAP OF THE TOWN OF CARLSBAD, IN
TIIE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO
MAP THEREOF NO. 775, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY FEBRUARY 15, 1894.
TAX PARCEL NOS. 203-304-09 AND 203-304-20
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EXHIBIT 2
CITY OF CARLSBAD REDEVELOPMENT AGENCY
PUBLIC PARKING SPACES LEASE AGREEMENT
THISLEASE AGREEMENT, made and entered into as of the
-., ',,, day of I 19-r by and between the
CITY OF CARL&D HOUSING AND REDEVELOPMENT COMMISSION, a municipal
corporation, hereinafter referred to as "Owner", and CARLSBAD VILLAGE \
MICROBREWERY & PUBLIC HOUSE, a California Limited Partnership,
ereinafter referred / 0 as "Lessee". \ RECITALS
WHEREAS, on March 1995, the Owner approved a Major
Redevelopment Permit to a Lessee to construct a restaurant and
microbrewery on property lot ed at 571 Carlsbad Village Drive within
the Village Redevelopment Are the City of Carlsbad; and
WHEREAS, as a condition of roval of Redevelopment Permit 94-07
and Coastal Development Permit 94- the Owner and Lessee agreed to
enter into a Public Parking Space Le Agreement for the purposes of
providing parking opportunities for th pproved restaurant and
microbrewery; and
WHEREAS, the Lessee agrees to lease a ta1 of seven (07) public
parking spaces from the Owner on property lo d at 630 and 632
Carlsbad Village Drive and 2970/76/92 Roosevelt treet all upon the
terms and conditions of this Lease.
NOW, THEREFORE, in consideration of these ret als and the mutual
covenants contained herein, Owner and Lessee hereby a ee as follows:
1. PREMISES.
The Owner hereby leases to Lessee seven (07) public
I.r_
arking
spaces from those certain premises (the "Premises") describ d on
Exhibit "A" attached hereto located at 630 and 632 Carlsbad 'llage
FA/w95
Drive and 2970/76/,, Roosevelt Street; APN 203-,-d-09 and 20,
Carlsbad, California, where a public parking lot is located. The
seven parking spaces will not be in a specific location within the
Premises. The Owner 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 Lessee use of said Premises.
Owner agrees to allow the public to use the Premises in the same
manner as a public parking lot subject to Leesee's duty to reimburse
Lessor pursuant to Paragraph 6. Lessee agrees not to impede this
public use in any manner. \\I, ,
2. TERM.
2.1 Term. The term of Lease shall be for ten (10) Lease
Years commencing on the Commencem Date as defined below (the
"Term"). If Lessor determines tha essee has permanently ceased the
use described in Redevelopment Permi 4-07, the Owner or Lessee may
terminate this lease by delivering wri n notice to other party at
least thirty (30) calendar da
termination; provided, however, such term ion shall not affect the
indemnity agreement in Paragraph 4.
2.2 Commencement Date. The Commenceme Date shall be the date
of issuance of any Certificate of Occupancy by e City of Carlsbad to
the Lessee for the Carlsbad Village Brewery and lit House as
approved in Redevelopment Permit 94-07. No certif e of occupancy
shall be approved until this Lease has been approve nd executed by
the Owner. The "Lease Year" is a period consisting of elve (12) full
calendar months commencing with the first day of a tale
or after the Commencement Date and ending one (01) year
2 Rev 5/11/95
3. RENTAL.
3.1 Rent. Beginning on the Commencement Date, Lessee shall pay to
the Owner as rent for e h full calendar month from and after the T Commencement Date the sum".of Five Hundred Sixty-Five Dollars and Fifty
Cents ($565.50) per month duting the Term subject to the increases to
the rent set forth in Section 3.2 of this Lease, for a minimum annual
rent of Six Thousand Seven Hund ed Eighty-Six Dollars ($6,786).
--_
Rent
shall be payable in advance upon he first day of each calendar month
beginning on the Commencement Date. The rent for any fractional part
of a month following the Commenceme te and the first day of the
first full calendar month subsequent the Commencement Date together
with the first full calendar month of t Term shall be payable within
fourteen (14) days after the Commencement All rents payable by
Lessee shall be paid in lawful money of th nited States without
deduction or offset and shall be paid to Ow at its address pursuant
to Section 12.2, or at such other place as Ow may from time to time
direct in writing.
3.2 Rent Increases. The rent payable under th ease shall be
minimum of the rent payable pursuant to Section 3.1 ve increased by
the method set forth below:
The annual rent set forth in Section 3.1 shall be the
first two (2) years of this Lease. Assuming an increase i he cost of
living, the annual rent shall be adjusted upward at the ex
the first two (2) year period and at the expiration of each
thereafter. The rent adjustment shall be calculated upon the
the United States Department of Labor, Bureau of Labor Statisti
Consumer Price Index of Urban Wage
3 Rev 5/11/95
Diego Statistical ,-.&ropolitan Area Average, all items. Commencing at
the end of Lease Year 2, the rent adjustment shall be effective as of
the first day of the first month following the expiration of each
lease year (the "Adjustment Date"). At each Adjustment Date, the
annual rent due shall be adjusted by the percentage increase, if any,
between the rent arged the previous year ("Base") and the Index
published and in e ect ninety (90) days preceding the Adjustment
Date. In no event sh the rent for any lease year be less than the
rent for the previous When the adjusted rent is
determined, Owner shall Lessee written notice of same indicating
how the new figure was corn d. If at any Adjustment Date, the Index
shall not exist in the same at as recited in this Section, Owner
shall substitute any official x published by the Bureau of Labor
Statistics, or successor or simil overnmental agency, as may then
be in existence and which 'is, in Ow 's reasonable discretion most
nearly equivalent to the Index.
3.3 Credit Towards In Lieu Fee.
If this Lease is terminated in actor e with the provisions of
Paragraph 9 prior to expiration of its term, cause Lessee has
elected to pay an in lieu fee instead of prove g parking spaces
pursuant to this Lease, then Lessee shall recei credit for the
rent paid under this agreement in an amount up to ut not in excess
of, such in-lieu fee. Owner is not obligated to mak ny refund of
payment of rents in excess of any future in-lieu fee
4. INDEMNITY.
Lessee shall defend and indemnify and save harmless
and the City of Carlsbad from all claims, demands, causes
or suits of whatever nature arising out of the Lessee's use
Premises and/or use of said
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Premises by Lessee'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 \ ction or proceeding brought thereon.
i
5. USE AND COMPLIANCE &TIi LAW.
5.1 Parking Lot Use. L&see shall be allowed to jointly use and
“\ occupy the Premises solely for \ the purposes of conducting and carrying
'on the operation of a surface p blic I parking lot and for no other
\ purpose except as may be approve 4 in writing by the Owner. Owner
covenants that during the Term, t Premises shall be provided as a
surface public parking lot and for other purpose, unless approved
by the Owner and subject to the c
this Lease. The Owner may, at its sol close the subject
public parking lot at any time for spe 1 city-approved events,
maintenance activities and/or other even activities which are deemed
appropriate by the City of Carlsbad or the The Owner shall
provide the Lessee with a thirty
closure of subject public parking lot.
5.2 Chanqes to Lot Use. If the Owner approv n alternate use
for the Premises, which is consistent with the Rede lopment Plan,
Village Design Manual/Local Coastal Program, and Car
Redevelopment Implementation Plan, at any time during e Term of this
Lease, the Owner shall designate a total of at least s
comparable public parking spaces to be located within 300 eet of the
Carlsbad Village Brewery and Public House as a substitutio
5 Rev 5/11/95
public parking spaces identified within this Lease. The Owner shall
provide the Lessee with a minimum sixty (60) day written notice prior
to initiation of any/substitution of public parking spaces to be
covered by this Lease:';>,
6. MAINTENANCE AND R&AIRS. \
Lessee shall not cause or permit any waste, damage or injury to
said Premises. If damage i caused by Lessee or Lessee's employees,
agents, contractors, subcon&ctors or laborers, then all repairs, \
replacements and renewals shall,,,be at the Lessee's expense and at
least equal in quality in 1 and workmanship to that originally
existing on said Premises as of the date of commencement of the Lease
\ between the Owner and Lessee. \ \
7. ALTERATIONS AND ADDITIONS.
Lessee shall not have the right to ke changes or alterations to
said Premises, nor in any event shall the
any alterations, rebuilding, replacement, additions or
improvements or repairs to the Premises duri the Term except as
specifically provided in this Lease.
8. INSURANCE.
The Lessee shall file a Certificate of Insuran with the Risk
Manager of the City of Carlsbad in the amount of one lion dollars
($1,000,000) and shall indicate that the Carlsbad Rede opment Agency
and City of Carlsbad are an additional insured. A valid
shall be provided annually to the
Carlsbad and be in effect for each day of the term of this
6 Rev 5/11/95
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,
.
9. RENEWAL/TERMINATION OF SUBLEASE.
9.1 Renewal. If agreed upon by both the Owner and Lessee, this
Lease Agreement may be renewed at the end of the ten-year term for an
additional ten (10 Lease Years.
? \
9.2 TerminationA, Termination of this Lease by either party does
not relieve the Lessee om the requirements of the conditions of
Redevelopment Permit 9
9.2.1 The Lease wil automatically terminate upon
termination of Redevel
9.2.2
for which Lessee
elects to pay th
days notice, pay
10. LESSEE'S OBLIGATIONS.
The parking requ
are those of the Lessee and the Owner shall no for any period during
which the Lessee
in providing said parking.
waive the obliga
94-07 or any other City of Carlsbad permit or approv granted for
Lessee for the s its obligation
to comply with City ordinances and regulations.
c
11. QUIET ENJOYMENT.
Upon payment by Lessee of the rents provided herein, and upon
observance and performance of all of the covenants, terms and
conditions on the par t of the Lessee to be performed hereunder, Owner
\ covenants and warrants'fhat patrons and employees of Lessee may
peaceably and quietly enjoy the use of said Premises for non-exclusive
public parking spaces during the term of this Lease.
12. MISCELLANEOUS.
12.1 Waiver. The waiver; by either the Owner or Lessee 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.
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 Owner or Lessee 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 Owner or Lessee may from time to
time, by written notice to the other party designate a different
address which shall be substituted for the one s‘pecified herein: '3%
Owner LESSEE '~., \ \
City of Carlsbad Carlsbad Villa e Microbrewery Housing & Redevelopment Department b Public Hous c/o Finance Department c/o Brett Redmay e-Titley 1200 Carlsbad Village Drive 1002 S. Tait Stre t Carlsbad, CA 92008
‘I"
Oceanside, CA 920
\
8 Rev 5/11/95
12.3 Exhibits. All Exhibits referred to in this Lease and
attached hereto are hereby incorporated herein by reference and made a
part hereof as thou h'herein set forth verbatim.
\
12.4 Time of Time is hereby expressly
the essence of this Leas,e and of each and every term, condition and
declared to be of
covenant hereof which relates to a date or period of time.
12.5 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 the Owner and Lessee.
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. ‘;
12.6 Effect of Invalidity. If '$,ny term or provision of the Lease
or the application thereof to any person or circumstances shall, or ‘\ any extent, be invalid or unenforceable:\the remainder of the Lease,
or the application of its term and persons and
circumstances other than
unenforceable shall not be
provision of this Lease shall be valid and enfor eable to the fullest 6
extent permitted by law.
12.7 Successors and Assiqns. The Lease and the conditions and
covenants herein shall be binding and inure to the benefit of the
Lessee only and shall not a ply to the successors and assigns of
Lessee, unless prior writte
successor and assigns %
approval is provided by the Owner. No
shall ,e permitted in conjunction with this
Lease arrangement between thd!Owner and Lessee, without prior written
approval by the Owner. If approval is granted by Owner, all references
in this Lease to Lessee shall be deemed to refer to and include all
\ permitted successors and assignsq,of Lessee. \
\
12.8 Consents. Except as exbressly provided in this Lease, where ,
the consent or approval of Owner or;Lessee 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 reques for indemnity by Lessee and/or
its successor as a condition of granting such consent shall not be
considered as requiring payment of any chnsideration for purposes of
this Section.
12.9 Entire Agreement. This Lease \ and,the Exhibits attached
hereto contain the entire agreement of the 0
respect to the matters covered hereby, and no ther agreement,
statement or promise made by either Owner or
contained herein, shall be valid or binding. No
understanding or representation pertaining to any uch matter shall be
effective for any purpose. No provision of the Leas may be amended or
added to except by an agreement in writing s
Lessee.
10 Rev 5/11/95
is
12.10 Quitclaim Deed. At the expiration or earlier
termination of this Lease, Lessee shall execute, acknowledge and
deliver to Owner, wi hin five (05) days after written demand from $'
Owner to Lessee, any quitclaim deed or other document reasonably
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.
IN WITNESS WHEREOF, the parties hereto have executed this Lease
as of the date set forth aboie.
LESSEE \
\ OWNER
Carlsbad Village Microbrewery \I Housing and Redevelopment .b Public House, a California Limited Partnership \.,, Commission I/
‘\
‘\ By: ';, By : Brett Redmayne-Titley \ Claude A. Lewis, Chairperson 1,
By: Vince Marsaglia \
By: \ Gina Marsaglia \.
Approved as to Form:
Ronald R. Ball, City Attorney
11 Rev 5/11/95
EXHIBIT "A" DESCRIPTION OF PROPERTY
THE LAND REFERRED TO IN THIS,SUBLEASE IS SITUATED IN THE STATE OF T CALIFORNIA, COUNTY OF SAN DIEGO AND IS DESCRIBED AS FOLLOWS:
LOTS 1 THROUGH 5, IN BLOCK 38 OF THE AMENDED MAP OF THE TOWN OF CARLSBAD, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 775, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY FEBRUARY 15, 1894.
TAX PARCEL NOS. 203-304-09 AND 203-304-20
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June 13, 1995
TO: Housing and Redevelopment Director
FROM: City Attorney
PUBLIC PARKING LEASE AGREEMENT BETWEEN HOUSING AND REDEVELOPMENT COMMISSION AND CARLSBAD VILLAGE MICROBREWERY AND PUBLIC HOUSE
In order to make it perfectly clear that the owner has the primary duty to provide parking for this use and the Redevelopment Agency is not under any sort of duty to provide that parking but has consented to lease seven public parking spaces since they are available and will use its best efforts to locate substitute parking if the public parking lot changes use, I recommend changing section 5.2 of the lease to read as follows:
"If the owner approves an alternate use for the premises, which is consistent with the Redevelopment Plan, Village Design Manual, Local Coastal Program and Carlsbad Village Redevelopment Implementation Plan, at any time during the term of this lease, owner shall use its best efforts to designate a total of at least seven (7) comparable public parking spaces to be located within a reasonable distance of the Carlsbad Village Brewery and Public House as a substitution for said public parking spaces identified within the lease. The owner shall provide the lessee with a minimum sixty (60) days written notice prior to initiation of any substitution of public parking spaces to be covered by this lease. The Redevelopment Agency has no duty to provide substitute parking spaces and failure to provide substitute parking spaces shall not relieve lessee of its duty to provide sufficient parking spaces under section 10 of this lease, the terms and conditions of the redeve nt permit or City parking ordinances and standard
RONALD R. BALL City Attorney
rmh
c: City Manager