HomeMy WebLinkAboutAgenda Report - February 3, 2010 J-02AGENDA ITEM Z*'&*L
dh CITY OF LODI
,. COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Enter into a Third Amendment to
the World of Wonders Science Museum Lease
MEETING DATE: February 3,2010
PREPARED BY:
City Manager
RECOMMENDED ACTION: Adopt resolution authorizing the City Manager to enter into a Third
Amendment to the World of Wonders (WOW) Science Museum
lease.
BACKGROU NDIN FORMATION: The City of Lodi received the attached letter from the Board of
Directors of the WOW Science Museum requesting that the Council
consider amending the current lease agreement and their
Specifically, the WOW Board requests the Council:
A) Extend the commencement of rent obligations by one additional year — (The current agreement
calls for rent in the amount of $1,030.00 per month to begin in February 2010); and,
B) Freeze the indexing of rent increases for one additional year. The rent is to increase annually by
the Consumer Price Index or 2.5 percent, whatever is larger.
The WOW Museum entered into an agreement with the City Council on August 2, 2006 to develop the
"Shell" space attached to the downtown parking garage as an interactive science museum focused on
children. Prior to this agreement, the City had unsuccessfully marketed the space for retail use.
The WOW has engaged in a very successful campaign to raise funds and has invested $550,000 in
improvements, plus in-kind contributions. They have a collection of exhibits via the Exploratorium and
opened on March 6, 2009. However, the museum is requesting more time to raise operating capital.
The economy has been a problem for fund-raising.
FISCAL IMPACT: All rent proceeds benefit the Transit Fund pursuant to the City's funding agreement
with the Federal Transit Administration. The Transit Fund would forgo
approximately $12,360 in annual rent. On the other hand, the City has received
over $550,000 in improvements to its asset. It appears as though the WOW will be a downtown
attraction that will add to the economic vitality of Sacramento Street and help to draw visitors to
downtown Lodi. In addition, it is expected the WOW retail store will produce future sales tax revenue.
FUNDING AVAILABLE: Not Applicable Blair King
City Manager
Attachments
APPROVED:
air g , City Manager
f
JAN 2 6 2010
t) CITYNACER,S OFFICE
SoENC MUSED
January 26,2010
Blair King
Lodi City Manager
PO Box 3006
Lodi, CA 95241
Dear Mr. King,
The Board ofDirectors and Officers ofthe World of Wonders (WOW) Science Museum are
requesting that the lease agreement between the City of Lodi, a municipal corporation, and the
World of Wonders ScienceMuseum, a Californiallonprofit Corporation,be deferred for another
year, commencing 2011.
The WOW opened its doors on March 6,2009. Over 3,000 school children have attended field
study trips at the museum. We have drawn students from as faraway as Tracy, the foothills, up to
Elk Grove and beyond. Almost 1,400 children have attended the science-themedbirthday parties. In
addition, more than 10,000paid guests have visited during our public hours of operation. The WOW
has been a destination for many out of town tourists and has become a wonderful asset to the City of
Lodi.
The majority ofprivately owned museums across the country are financially supportedby their
local school districts, cities and counties. The Davis Explorit is a prime example of a city funded
museum. With the down tum ofthe economyin 2008, donations to the World of Wonders Science
Museum dropped off drastically. The financial support has not yet stabilized, but the WOW Board
is very encouragedthat in 2010 the economy will tinn a bit and more grants and communitybased
donations will help to keep the doors open.
With one full time employee , one part time employee and many dedicated volunteers we believe
that the WOW museum will be apart ofthe City of Lodi for many generations to come. We are asking
that ,you consider deferring'the lease for another year so we may continue to compliment the science
education of our children throughout the whole Central Valley and Foothills.
Sincerely,
sally any
President ofthe World of Wonders Science Museum
"The mission of the World iof Wonders Science Museum is to offer hands-on
science -based exhibits and programs to stimulate discovery for all ages."
address: 2 North Sacramento Street, Lodi, CA 95240
website: www.WOWScienceMuseum.org phone: 208.388.OWOW [0969]
President
Sally Snyde
Vice President
Dan Ingrum
Treasurer
Mark Chandler
Secretary
Christina Wilson
Board of Directors:
Dr. Kathryn Beckman
Jay Bell
Randall Blank
Corey Daniel
Barbara den Hartog
Jerry Fry
Wally Sandeiin
Walt Wolterstorff
Kathy Wooton
Tax Identification
Number: 20-3075595
501(c) (3)
Non -Profit Corporation
THIRD AMENDMENT TO LEASEAGREEMENT
WORLD OF WONDERS SCIENCE MUSEUM
THIS THIRD AMENDMENT TO LEASEAGREEMENT, entered into this day
of , 2010, 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 W O W 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 Council approved a FIRST AMENDMENT dated on December 19, 2007;
and a second Amendment dated February 4,2009; and
WHEREAS, the Lease Agreement as amended requires that the payment of rent
commence by February 1,2010;
WHEREAS, The WOW has completed construction of the north half of the
Tenant Improvements, and opened for business.
WHEREAS, in recognition of WOWs efforts and expected successful fundraising
campaign, the Parties wish to extend WOWs deadline for the rent commencement date.
NOW, THEREFORE, BE IT AGREED AS FOLLOWS:
1. Effect of Amendment.
Except as expressly modified herein all terms of the Lease Agreement shall
remain in full force and effect.
2. Rent: Paraaraah six of the Lease Aareement shall be amended to read:
No rent shall be required to be paid until February 1, 2011. Starting February 1,
2011 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 WOWs 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 WOWs monthly rental
payment shall increase by no less than 2.5%, and no more than 5.0%, per year.
3. FTA Approval: This lease amendment is subject to approval by the Federal
Transit Administration.
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:
RANDI JOHL, J.D., City Clerk
APPROVEDAS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
WORLD OF WONDERS SCIENCE MUSEUM,
a California Nonprofit Corporation
1
SALLY SNYDE, President
2
RESOLUTION NO. 2010-13
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ENTER INTO THIRD AMENDMENT
TO WORLD OF WONDERS SCIENCE MUSEUM LEASE
WHEREAS, the World of Wonders (WOW) Museum entered into an agreement with the
City Council on August 2, 2006, to develop the "shell' space located attached to the downtown
parking garage as an interactive science museum focused on children; and
WHEREAS, the WOW has engaged in a very successful campaign to raise funds and
has invested $550,000 in improvements, plus in-kind contributions. It has a collection cf exhibits
via the Exploratoriumand is open; and
WHEREAS, the museum is requesting more time to raise operating capital due to the
existing economy, which has effected fund raising efforts; and
WHEREAS, the Board of Directors of the WOW Science Museum has requested that
the City Council consider amending the current lease agreement as outlined below:
A) Extend the commencement of rent obligations by one year — $1,030.00 per
month to begin in February 2010; and
B) Freeze the indexing of rent increases for one year — The rent is to increase
annually by the Consumer Price Index or 2.5% whatever is larger.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to enter into a Third Amendment to the WOW Museum Lease as
outlined above; and
BE IT FURTHER RESOLVED that this lease amendment is subject to approval by the
Federal Transit Administration.
Dated: February 3, 2010
I hereby certify that Resolution No. 2010-13 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 3, 2010, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and
Mayor Katzakian
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Norne��
JOHL
City Clerk
2010-13