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Home My WebLink AboutAgenda Report - September 2, 1987 (81)CITY COUNCIL_ MEETING SEPTEMBER 2, 1987 STATUS REPORT RECEIVE► ON PROPOSED ,,GREEMENT j BETWEE'° THE CITY OF LODI ?ND GEORGE SAKURAI AND KEN WOLLENBERG TO OPERATE THE GOLF DRIVING RANGE LOCATED AT 531 L-/�ST LOCKEFORD STREET Council received a revert from the City Attorney regarding the status of the proposed agreement between the City of CC -27 (-f-) ' Lodi and George Sakurai and Ken Wollenberg to operate the Golf Driving Range located at 531 East Lockeford Street. jh t4 9 3 a ,LYS ^+!�?� u, U CIL COINI:IIUNICATIQ.• TO THE CITY COUNCIL I DA'L'E: j t"O. FROM. THE CITY MANAGER'S OFFICE September 91, 1987 SUBJECT: Agreement Between the City of Lodi and George Sakurai and Ker, Wollenberg to Operate the Golf Driving R.•nge Located at 531 East Lockeford Street, Lodi. PREPARED BY: City Attorney STATUS REPORT: The agreement between Sakurai/Wollenberg and the City for the sublease of the Golf Driving Range was before Council at its August 19, 1987 regular meeting. After the Council packet had been completed, staff received a letter from Sakurai /WolIenberg's attorney, asking for alternate language to be added to Item 16 of the prepared agreement, which language related to Lessee's ability to assign nr sublease the leased property; and that letter was furnished to the Counci, at the August 19, 1987 meeting as additional information. Council expressed concern regarding the requested alternate language and directed that the City Attorney contact the involved parties in an attempt to either have the agreement executed in the form as presented in the packet by the City Attorney, or to come up with other language acceptable to Council. The City Attorney on August 20, 1987 wrote to Lessee's attorney, expressing Council's concerns regarding this matter and, pursuant to Council's direction, has been working with the Parks and Recreation Director and Lessees in an attempt to resolve the issue. The Wollenbergs have indicated that they desire to have: the matter resolved by their attorney, and although it was anticipated that the agreement would be back before the Council for the September 2, 1987 Council meciing, it was learned on August 26, 1987 that Lessee's attorney is now on vacation. Staff will bring an agreement and/or information regarding this matter back to Council at the very earliest possible date. spectfully submitted, Ronald M. Stein City Attorney RMS:vc cccgolf/txta.01v CITY COUNCIL ENELYN:11 OI.SI)N Maytrr JOHN R (Rand�', SNIL)iR .458t0r Pro TPn'.;>c:: !' D AA1ID M ti!N(J!%i AN IAME5 W PINKERTON. Ir FREE) ;M REID August 20, 1987 CITY HAL I. 221 WEST PINE STREET (:AIL Ei 1, 3006 LODI, CALIFJRMA 95241-1910 (209) 334-5634 TE LE COPIER. (209) 333-6795 Eric H. Hintz Hintz & Hintz Court Plaza Building 901 H Street, Suite 301 Sacramento, CA 95814 Re: Sakurai and Wollenberg Sublease Agreement Dear Eric: TH0.10AS A. PETERSON city :Mana,rr ALICE ••'A REIA1CHE City Clerk RONALD ,til STEIN City Attorney Your August 14, 1987 letter re adding additional language to the above -referenced Agreement was presented to the City Council at its regular meeting held August 19, 1987. The City Co,incil felt uncomfortable with this language and would ask that the Lessees consider signing the lease agreement for the golf driving range as it was originally prepared. The reason for the Ciuncil's concern was that they believe that the phrase "commercially reasonable objections" is too narrow. One council member suggested for example, that an individual who oras a convicted child molester, could possibly be allowed to have the assignment or sublease, and the City could not, under the "commercially reasonable objections" phrase object to a child molester having the assignment/sublease. Perhaps yc•i can think of other-I.,4nguage we can agree on. It RONALD M. STEIN CITY ATTORNEY RMS:vc hintz/txta.Oly cc: City. Clerk Parks and Recreation Director I,- LAV: OF -ICES II Iti "I' Z S I I IN T "l.. COURT PLAZA BUILDING 901 H STREET. SUITE 305 SAC14—ENTEI. CALif 0 -?.,A 95914 HAMILTON _ HINTZ. J:� ERIC H. HINTZ August 14, 1987 Mr. Ronald M. Stein, Esq. City Attorney 125 North Stockton St. Lodi, CA 95240 Re: Sakurai and Wollenberg Sublease Agreement Dear Ron: ..3 I �( City Attorney's Office t TELEPHONE (916) 444-3,00 This will memorialize and confirm o,ir telephone conversation of August 12, 1987, wherein we discussed the revisions you made to the proposed sublease agreement following our meeting of July 6, 1987. As I indicated to you in our telephone conversation, the revisions appear, for the most part, to have addressed the concerns raised in our meeting. As we discussed, however, I still am uncomfortable with paragraph 16 which does not, in my mind, clearly articulate our understanding regarding the possibility of an assignment or sublease. Notwithstanding your assurances that the City of Lodi has no desire to prevent an assignment or sublease to a qualified prospective assignee/sublessee, I would feel more comfortable recommending thp..t my clients sign the new lease with the following subtle change: "(16) It is rnderstood that Second Party shall be entitled to assign or sublease the property hereinabove referred to only with the prior written consent of First Party. First Party agrees that it will approve such an assignment or sublease in the absence of commercially reasonable objections to the proposed assignee or sublessee." Following our conversation of August 12, I also discussed with my clients the language of paragraph 5 which appears to impose a new - obligation to complete monthly records on forms provided by the f= City. I do not personally have a problem with this proviso, however, I have recommended that they discuss this issue with Ron Williamson in order to assess the additional burden, if any, this a 4 will place on their bookkeeping responsibilities. a i Y �ay T� Mr. Ronald M. Stein, Esq. City Attorney August 14, 1987 Page Two I€ the proposed change to paragraph 16 is acceptable to you, and the question posed by paragraph 5 can be resolved, I would recommend that my clients execute the new sublease agreement in your office on August 19, 1987. It is also my understanding that the necessary insurance arrangements have been made and that appropriate proof of the same will be made available to you prior to execution of the new sublease. Ron, based on our conversation, I am confident that any proposed change to paragraph 16 should not cause you any concern. If a question does arise, please do not hesitate to contact my office. I will personally be on vacation during the week of August 17-24, but my secretary can contact me if necessary. Thank you very much for your continued courtesy and cooperation in this matter. Very truly yours, HINTZ & HINTZ • Ui `Y ERIC H. HINTZ ehh/ny cc Ken and Rose Wollenberg George Sakurai w/enclosure Phil Hiroshima, Esq. w/enclosure 'Rr 4w_ k:4 Mr. Ronald M. Stein, Esq. City Attorney August 14, 1987 P-ge Two If the proposed change to paragraph 16 is acceptable to you, and the question posed by paragraph S can be resolved,, I would recommend that my clients execute the new sublease agreement in your office on August 19, 1987. It is also my understanding that the necessary insurance arrangements have been made and that appropriate proof of the same will be made available to you prior to execution of the new sublease. Ron, based on our conversation, I am confident that my proposed change to paragraph lb should not cause you any concern. If a question does arise, please do not hesitate to contact my office. I will personally be on vacation during the week of August 17•-24, but my secretary can contact me if necessary. Thank you very much for your continuedcourtesy and cooperation in this matter. Very truly yours, HINTZ & HINTZ 4i'�t�GciG , ERIC H. HINTZ ehh/ny cc hen and Rose Wollenberg George Sakurai w/enclosure Phil Hiroshima, Esq. w/enclosure > r 'ry`'+.�a 'T<'t� ♦i }. '. J L.3 y Y; t .k.. � }��1lf �S +Ir \Xq„ )�..'i2 � w+ �, tr ` �'�A�3, F _t Yom- f t .�� T.S , 1 .r f .l fYr ! iL T.�� F.� �.}K d�.f '�•��f' � � :.„`.-y' �l`�.rs .+.�+a a-.i>sr...ra r r••a_:�f .�... .. .. "./ ,_. Y�j r. t.��.c.%.r .Y+-. rD.'�/�'....�s� n..Y. �-.� .`.•, �?a't,f,'+S%�1��n.