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HomeMy WebLinkAbout2007-06-12; Housing & Redevelopment Commission; 402; New Village Arts Theatre lease agreement amendmentHOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL 1 AB# 402 MTG. 06/12/2007 DEPT. ED First Amendment to the Lease Agreement between New Village Arts Theatre and the Carlsbad Housing and Redevelopment Agency DEPT. HEAD g CITY ATTY. ^ CITY MGR. _v- •H r\ ^7<^i RECOMMENDED ACTION: Approve Resolution No.440 _approving the First Amendment to the Lease Agreement between New Village Arts Theatre and the Carlsbad Housing and Redevelopment Agency, extending the lease term to June 30, 2009, for 2787-B State Street. ITEM EXPLANATION: In March 2007, New Village Arts Theatre contacted the City to inquire as to whether the Redevelopment Agency would be willing to provide the Theatre with interim funding in the form of a construction loan to allow for their tenant improvement to be completed on schedule. Subsequent to their request, the Theatre contacted the City indicating that their fundraising had been successful and that it did not appear that a loan would be necessary. However, New Village Arts Theatre did request that their Lease Agreement be amended to extend their lease term from September 30, 2008 to June 30, 2009, an extension of nine (9) months to be consistent with an adjacent tenant. Staff is recommending approval of the extension since 2787-A State Street is leased to Sowing Sisters Quilt Shop with a lease expiration of June 30, 2009. Amending the Lease Agreement with New Village Arts Theatre located at 27887-B State Street, allowing them to extend their term to match that of Sowing Sisters Quilt Shop, would provide for consistency in occupancy of the building and would have minimal impact to the Redevelopment Agency. All other terms of the Lease Agreement will remain in full force and effect. FISCAL IMPACT: There is minimal fiscal impact associated with this action. Currently the Redevelopment Agency leases 2787-B for one dollar per year. Extending the current term to June 30, 2009, will result in additional revenue of one dollar for the additional 9 month period. ENVIRONMENTAL IMPACT: The Planning Director has determined that the project is exempt from the California Environmental Quality Act, pursuant to Section 15301 of the CEQA Guidelines. Section 15301 exempts projects or activities that consist of leasing of existing public facilities involving no expansion of use. Lease of public property for operation of a theatre, with an existing use as a commercial establishment, and no other plan for development of that property, is such an activity. Should the Agency or City decide to pursue development of the site at a future date, additional environmental review will be conducted. DEPARTMENT CONTACT: Cynthia Haas 760-602-2732 chaas(g)ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COMMISSION ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 "First Amendment to the Lease Agreement between the Carlsbad Housing and Redevelopment Agency and New Village Arts Theatre" EXHIBITS: 1. Resolution No. 440 2. First Amendment to the Lease Agreement between the Carlsbad Housing and Redevelopment Agency and New Village Arts Theatre 1 RESOLUTION NO. 440 2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF 3 CARLSBAD, CALIFORNIA, APPROVING THE FIRST 4 AMENDMENT TO THE LEASE AGREEMENT BETWEEN NEW VILLAGE ARTS THEATRE AND THE CARLSBAD 5 REDEVELOPMENT AGENCY TO EXTEND THE LEASE TERM FOR 2787-B STATE STREET TO JUNE 30, 2009. 6 1 WHEREAS, the Carlsbad Redevelopment Agency entered into an Lease 8 Agreement with New Village Arts Theatre for property located at 2787-B State Street, 9 originally known as the Bauer Lumber Building; and 10 WHEREAS, the subject site was acquired by the Redevelopment Agency with 11 the intent of facilitating redevelopment of the site as well as other properties at the 12 corner of State Street and Grand Avenue; and13 14 WHEREAS, it is anticipated that it will be at least two years before 15 redevelopment of the site will occur; and 16 WHEREAS, there is a need within the community to make continued use of the 17 subject building/space and determine the economic benefit of a live theater in the 18 Village Redevelopment Area; and 19 WHEREAS, California Redevelopment Law permits the Agency to Rent, 20 maintain, manage, operate, repair and clear property purchased for the purpose of 21 redevelopment; and 22 WHEREAS, the Agency has determined that it is appropriate and necessary to £j extend the term of the subject lease for entertainment purposes until such time as a 25 redevelopment project may be implemented. 26 /// 27 /// 28 1 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment 2 Commission of the City of Carlsbad, California, as follows: 3 1. That the above recitations are true and correct. 4 2. The Commission hereby determines that the building located at 2787 5 State Street, and owned by the Redevelopment Agency, shall continue to 6 benefit the redevelopment area through its use for entertainment purposes 8 through a lease extension with New Village Arts Theatre with a term ending 9 June 30, 2009 according to the terms set forth in the First Amendment to the 10 Lease Agreement provided as Exhibit 2, and hereby approves said First 11 Amendment. 12 3. The Commission hereby authorizes the Chairman of the Housing and 13 Redevelopment Commission to execute the approved First Amendment to the 14 Lease Agreement between the Carlsbad Redevelopment Agency and New 15 Village Arts Theatre extending the term of the lease for the property located at16 2787-B State Street, to June 30, 2009, subject to approval of the City 18 Attorney, who serves as legal Counsel to the Carlsbad Redevelopment 19 Agency. 20 /// 21 /// 22 /// 23 /// 24 25 26 27 '" 28 \\ 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 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and Redevelopment Commission of the City of Carlsbad on the 12th day of June . 2007, by the following vote, to wit: AYES: NOES: ABSENT: Commissioners Lewis, Kulchin, Hall, Packard None Commissioner Nygaard UJDE A.lEWIST CHAIRMAN ATTEST: RAYMOND R. PATCHETT, SECRETARY s, ®f*L~> &?=3& *»•*•* •- *i *^.re/ESTABLISHED \tc AMENDMENT NO. 1 TO LEASE AGREEMENT BETWEEN THE CARLSBAD REDEVELOPMENT AGENCY AND NEW VILLAGE ARTS THEATRE 2787 STATE STREET, CARLSBAD CA 92008 THIS FIRST AMENDMENT to the Lease Agreement is made and entered into this 13" day of /l/lfrH . 2007, by and between the CARLSBAD REDEVELOPMENT AGENCY ("Lessor") and New Village Arts Theatre ("Lessee"), and is made with reference to the following facts: RECITALS A. WHEREAS, on September 26, 2006, the Housing and Redevelopment Agency entered into a two year Lease Agreement beginning October 1, 2006 and ending September 30, 2008 with New Village Arts Theatre for use of Agency owned property located at 2787-B State Street, as a live theatre; and B. WHEREAS, Lessee has requested that the existing Lease Agreement be amended to extend the term to June 30, 2009; and C. WHEREAS, The Agency has determined use of the property located at 2787- B State Street for an extended lease period benefits the Village Redevelopment Area and meets the goals of the Agency. NOW THEREFORE, incorporating the above recitals and in consideration of the covenants and obligations set forth herein, the parties hereto agree as follows: 1. That the above Recitals are True and Correct. 2. Except as expressly modified herein, the remaining terms and conditions of the Lease Agreement shall remain in full force and effect. New Village Arts Lease Amendment No. 1 (t 3. That Paragraph 1 of the Lease Agreement shall be amended, in its entirety to read as follows: 1. TERM. The term of the lease shall be for a period of thirty-three (33) months beginning October 1, 2006, and ending on June 30, 2009. At Lessor's sole discretion, Lessee may extend the term for one (1) additional one (1) year period, upon the same terms and conditions stated herein. Lessee must request the extension in writing at least 120 days prior to initial lease term's expiration. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the month, day and year above written. C ATTEST: BY: Secretary r oY ESTABLISHED''; %' l^\ 1970 /I New Village Arts Lease Amendment No. 1 NEW VILLAGE ARTS THEATRE President ATTEST BY: VT&AL Secretary/Board Member APPROVED AS TO FORM New Village Arts Lease Amendment No. 1 State of California County of }ss.CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT On \ S, Date personally appeared , before me, . . Printed Name(s) ofSigner(s) Printed Name of Notary Public personally known to me - or - | | proved to me on the basis of satisfactory evidence: D form(s) of identification D credible witness(es) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. IAMKJ.HOCHAMMAU Comn*Hon » 1834849 NotayPuMc Coitomla San Otogo County MyComm.ExptasDec 14,2001 WITNESS my hand and official seal. (Seal) OPTIONAL INFORMATION Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document The preceding Certificate of Acknowledgment is attached to a document titled/for the purpose of Additional Information containing 3 pages, and dated The signer(s) capacity or authority is/are as: -^ Individual(s) I I Attorney-in-Fact LJ Corporate Officer(s) Title(s) ED Guardian/Conservator EH Partner-Limited/General Ell Trustee(s) D Other: representing: Name(s) of Person(s) or Entity(ies) Signer is Representing | Additional Signer(s) { | Signer(s)Thumbprint(s) Other © Copyright 2004 Notary Rotary, Inc. 925 29th St., Des Moines, IA 5031 2-361 2 Form ACK02. 02/04, To re-order, call toll-free 1-877-349-6588 or visit us on the Internet at http://www.thenotaryshopcom