HomeMy WebLinkAboutAgenda Report - December 19, 2007 K-04AGENDA ITEM 94
' CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Authorizing City Managerto Enter into a FirstAmendmentto
World of Wonders Science Museum Lease to Extend Commencement of Rent
Obligation
MEETING DATE: December 19,2007 City Council Meeting
PREPARED B Y City Manager
RECOMMENDED ACTION:
Adopt Resolution authorizing the City Manager to enter into a First
Amendment to World of Wonders Lease to extend commencement
of rent obligation.
BACKGROUND INFORMATION: The City Council approved a lease with the World of Wonders
Science Museum ('WOW) in February of 2007. The lease requires
that tenant improvements be completed by January of 2008 and
that the payment of rent commence on the same date. Although as outlined below, the WOW has
achieved significant success in their fundraising campaign; their efforts have been hampered by the
current economy. As such, they have requested a one-year extension for completion of the tenant
improvementsand commencement of rent.
To date, WOW has over $240,000 in the bank. This includes the $165,000 held in CDs as a security
deposit for the City of Lodi. In addition the WOW has made significant strides in lining up exhibits.
Two months ago the Board of Directors made the decision to partner with the San Francisco
Exploratorium. This partnership will extend over three years at $120,000 per year. The Exploratorium
will supply the WOW with 30-35 new hands-on exhibits, exhibit building training and educational program
training and work with the school district to coordinate the WOW programs with Lodi's classroom science
curriculum, Two Board members, Dr. Kathy Beckman and Barbara den Hartog, are purchasing two
exhibits for the Museum. The Lodi Association of Realtors has donated a six-foot hand made clock.
Kaiser Permanente has shown interest in purchasing an exhibit that follows their theme of "Thrive and
Live Well".
Based upon this progress, staff feels comfortable that they will meet their goals within the requested
period and recommends that Council authorize the City Manager to authorize the First Amendment
attached to this Council Communication.
Blair King
City Manager
APPROVED:
Blair Kin anager
FIRST AMENDMENT TO LEASE AGREEMENT
WORLD OF WONDERS SCIENCE MUSEUM
THIS FIRST AMENDMENT TO LEASE AGREEMENT, entered into this day
of , 2007, by and between the CITY OF LODI, a municipal corporation ("City"),
and the World of Wonders Science Museum, a California Nonprofit Corporation (Tax ID
No. 20-3075595) ("The WOW" or "Lessee") shall be as follows:
WHEREAS, the parties entered into a Lease Agreement dated February 1, 2007
to allow the construction of Tenant Improvements for and the operation of a Science
Museum and Museum Store by The WOW in the Lodi Parking Structure space owned by
the City; and
WHEREAS, the Lease Agreement requires that the Tenant Improvements be
completed by January 31, 2008 and that the payment of rent commence by February 1,
2008;
WHEREAS, The WOW'S construction of the Tenant Improvements has been
delayed despite WOW's considerable effort and success as a result of a slower than
projected fundraising campaign; and
WHEREAS, in recognition of WOW's efforts and expected successful fundraising
campaign, the Parties wish to extend WOW's deadline for completion of the tenant
improvements and the rent commencement date.
NOW, THEREFORE, BE IT AGREED AS FOLLOWS:
Effect of Amendment.
Except as expressly modified herein all terms of the Lease Agreement shall
remain in full force and effect.
2. Rent: Paraaraoh six of the Lease Aareement shall be amended to read:
No rent shall be required to be paid until February 1, 2009. Starting February 1,
2009 the WOW shall pay rent in the amount of $1,030.00 monthly (which is the
equivalent of $1.29 per square foot rent per month for the estimated 800 square foot
Museum Store.) to City.
The WOW's monthly rental payment shall increase in each year of this Lease
based upon the annual percentage change of The Consumers Price Index for All Urban
Consumers (All Items), San Francisco -Oakland -San Jose Average, as published by The
United States Department of Labor Statistics, for the month prior to the date the payment
is due. Notwithstanding the foregoing, for any given year, The WOW's monthly rental
payment shall increase by no less than 2.5%, and no more than 5.0%, per year.
7. TENANT IMPROVEMENTS. Subparagraph (c) of Paragraph 7 shall be
amended to read as follows:
c. Construction Timeline. The parties anticipate that Tenant Improvements will
be completed within nineteen (19) months of the execution of this Lease, but in no event
shall such improvements be completed later than January 31, 2009. Failure of The
WOW to complete construction of Tenant Improvements as set forth above shall be
deemed a material breach of the Lease.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and
year first hereinabove mentioned.
CITY OF LODI,
a municipal corporation
BLAIR KING, City Manager
ATTEST:
Jennifer Perrin, Interim City Clerk
APPROVED AS TO FORM:
JANICE D. MAGDICH
Deputy City Attorney
World of Wonders Science Museum,
a California Nonprofit Corporation
M
SALLY SNYDE
President
2
RESOLUTION NO. 2007-248
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO ENTER INTO
AMENDMENT TO WORLD OF WONDERS SCIENCE
MUSEUM LEASE TO EXTEND COMMENCEMENTOF
RENT OBLIGATION
WHEREAS, the City Council approved a lease with the World of Wonders
Science Museum ("WOW) in February of 2007, requiring that tenant improvements be
completed by January 2008 and that the payment of rent commence on the same date;
and
WHEREAS, although WOW has achieved significant success in its fundraising
campaign, its efforts have been hampered by the current economy, and it has requested
a one-year extension for completion of the tenant improvements and commencement of
rent; and
WHEREAS, based upon this progress, staff feels comfortable that it will meet its
goals within the requested period and recommends that Council authorize the City
Manager to authorize the First Amendment to the lease on file in the City Clerk's office.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to enter into a First Amendment to the WOW Museum
Lease to extend the commencement of the rent obligation and the completion of tenant
improvements.
Dated: December 19,2007
---------------
hereby certify that Resolution No. 2007-248 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held December 19, 2007, by the
following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, and
Mayor Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Hitchcock
ABSTAIN: COUNCIL MEMBERS — None
4ANDI �JOHL
City Clerk
2007-248