HomeMy WebLinkAboutAgenda Report - December 15, 1993 (52)os
`` oQ CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: PROPERTY LEASE FOR BOYS AND GIRLS CLUB W BLAKELY PARK
MEETING DATE: DECEMBER 15, 1993
PREPARED BY: BOB McNATT, CITY ATTORNEY
RECOMMENDED ACTION: Council consideration of authorizing the execution of
a Lease between the City and the Boys and Girls Club
for facilities at Blakely Park, and making related
findings.
BACKGROUND INFORMATION-. As the City Council is aware, groundbreaking for the
Girls and Boys Club Facility at Blakely Park occurred
December 2, 1993. Plans are now progressing to move
forward with the balance of the project altho•igh up to this point, we have been
working on a "handshake" basis. However, before further work occurs, the
formal agreement between the parties should be finalized. For that purpose,
the attached lease has been drafted.
This document is the result of meetings and negotiations between the City
and the Boys and Girls Club, and covers a number of concerns. Its term is
fifty-five years, because that is the maximum period allowed under
Government Code §37380 for lease of public property, unless certain
conditions which are not applicable here are met. Annual rents are fixed
at $1.00 per year since the arrangement benefits both the City and the
Club.
The lease also provides for certain reciprocal use by the City and Club of
each others facility when feasible, and designates maintenance
responsibilities. Other provisions are similar to those normally found in
long term leases of this type.
It is also noted pursuant to paragraph 6 of the lease that upon expiration
or termination, the facility will belong to the City. The Club has
concurred with this arrangement. This is consistent with private sector
practices, and avoids the complications associated with trying to
establish separate ownership in perpetuity between land and buildings. As
an assurance to the Club (o- its successor in fifty-five years) the lease
obligates the City to then negotiate in good faith the Club's continued
use of the building for the purposes stated.
AE PRCVEJ
THOMAS A PETERSON recyuec Pave,
` city Mannger
J
Cc
Departments have concurred in
The Parks and Recreation and Public Works
recommending to the Council that if it approves the lease, a finding be
concurrently made that the project is a "City project" under Municipal Code
&15 64.110(A) and thus exempt from development impact mitigation fees and sewer
connec.icn `-tes. This is premised on the fact that the City presently owns the
land and •upon expiration or termination of the lease will also own the building.
The remains. r of the lease addresses concerns such as hold harmless, insurance
requirements etc. Council direction/approval is requested.
FUNDING: None required
Respectfully submitted,
Bob McNatt
City Attorney
BM:pn
COCOMB&G/TXTA.OIV
OUND LEASE
(BOYS _ JIRLS CLUB 0V LODI)
THIS LEASE AGREEHMN'r, entered into th-s day of _ ,
199' 1:— and be -- ween tle CITY OF :,ODI, a municipal corporat- on ( "City") , and
the Boys and G.J rls Club -f "di ("Club") shall be as follows:
WHERRPS, the premises demised he_eu:ider =ire presently the subject of an
"Option to Lease" netween -:he �.a,t h Sated Match 2, 1)88 and expiring
December 31, 1955; and
WHEREA.4, the purpose of this agreement is to allow the construction and
operation of a recreational facility by Club on land ownad by the City; and
WHEREAS, the proposed relationship and arrangement described herein are
in the best interes-s of the City, Club and the young people of Lodi by
combining the efforts of both local government and the private sector; and
WHEREAS, Club's c-.nstruction of this facility on City land will provide
long term tangihle benefits to the youth of Lodi by assuring them of a place
to learn, grow, and enjoy an organized recreation program;
Page 1 of 10
I
NOW, THEREFORE, BE IT AGREED AS FOLLOWS:
1. DEMISED PREMISES.
The premises demised hereunder shall constitute approximately twenty-
nine thousand (29,000) square feet (more or less) located in the southeast
corner of City property commonly known as Blakely Park, more particularly
described in the diagram attached hereto and incorporated by reference as if
fully set forth.
2. USES ALLOWED.
Club agrees that it will use the Community Center constructed un3er the
provisions of this Lease for the youth of Lodi, to conduct day care programs,
and events of general interest to the community at large.
3. TERM.
The term of this agreement shall be for a period of fifty five (55) years
commencing and ending
provisions of Government Code Section 37380.
4. PENT.
Rent for the demised premises shall be one dollar ($1.00) per year for
the entire term of this lease, payable in advance the first day of January of
each year.
Page 2 of 10
S. RELOCATION OF EXISTING FACILITIES.
Club agrees to carry out or reimburse the City for carrying out the
relocation of any existing improvements, facilities, landscaping, etc.
presently in Blakely Park which may be made necessary by the construction of
the premises described above.
A landscape plan (Exhibit "B") is attached hereto and shall be deemed a
condition of this Lease. Club further agrees to replace any trees necessarily
removed during the remodeling or construction of the clubhouse.
6. OWNERSHIP OF IMPROVEMENTS UPON TERMINATION OR EXPIRATION OF LEASE.
It is agreed between the parties that upon the expiration or termination
of this Lease, the parties shall in good faith attempt to renegotiate an
agreement to continue similar uses to those specified in Paragraph 2 above.
If mutual agreement is not possible, following a reasonable attempt to reach
agreement, the City agrees it shall endeavor to use the building for purposes
similar to its original purpose. However, upon surrender, termination or
expiration of this Lease, ownership of the building and all improvements shall
vest in the City.
Page 3 of 10
7. USE OF FACILITIES BY CI:'Y.
The first priority for all uses of the facility built on the demised
premises shall be for the operation of the Club's own programs; the City may
use the facility at such reasonable times when no other activities are
scheduled by Club, and City shall pay to Club a fee intended to be minimal,
and covering only necessary costs of operation and maintenance as determined
by Club. The parties shall negotiate a reciprocal use agreement for charges
and costs for use of each other's recreational facilities on the basis of such
minimal cost of operation and maintenance.
8. ABANDONMENT/CESSATION OF USE BY CLUB,
Prior to commencement of construction (Phase 1), Club shall provide proof
to City's satisfaction that it presently has finances to complete the building
shell, which shall be completed within twelve (12) months following
groundbreaking, now scheduled for December 2, 1993. Thereafter, (Phase 2),
the interior finish and equipping of the facility shall be completed within
twenty-four (24) months after groundbreaking.
Failure of Club to cocplete construction within these time limits shall
be deemed a material breach of this Lease.
Page 4 of 10
Following the initial twenty-four (24) month construction period, any
cessation of use by Club for a continuous period of three hundred -sixty (360)
days or more shall allcw City, within its discretion, to operate the
facility. The parties hereto may mutually agree at any time that the City may
assume operation of the facilities.
In the event of the City's declaration of abandonment or cessation of
use, Club can cure such default and resume operations by demonstrating that it
has on hand the projected operating cost for a twelve (12) month period. In
the event of cessation or abandonment of operations under this Lease for a
period of twenty-four (24) months, the City may deem the Lease null and void
within its sole discretion.
9. MAINTENANCE OF FACILITIES.
Club shall be responsible for all utilities and the interior and exterior
maintenance of the building erected hereunder. City shall be responsible for
the maintenance and upkeep of the balance of Blakely Park exclusive of
landscaping installed by Club in conjunction with construction of the
building, interior walkways, parking lot and Club playground. After notice by
City to Club and a reasonable response time, City shall have the right to
enter onto the premises for the purpose of performing an..• necessary
maintenance for the preservation of the health or safety of Park users or the
public, should Club fail or refuse to do so. Club agrees that it shall make
all reasonable efforts to keep the facility free of graffiti.
Page 5 of 10
10. INSURANCE.
Lessee is required to carry a policy of Comprehensive General Liability
insurance in compliance with all of the provisions of the "Risk Transfer
Requirements For Lease or Use of City of Lodi Faci14ties (4/93 (KE)," attached
hereto as Exhibit "A" and incorporated herein by reference.
Failure to maintain the insurance called for in this paragraph shall be
deemed a material breach of this Lease-
11.
ease_
11. HOLD HAR11LESS .
City and Club hereby agree to save, defend and hold harmless the other
for any suit or cause of action arising exclusively from the negligence or
alleged negligence of the indemnifying party, its agents, officers and
employees, including reasonable attorneys' fees.
12. TERMINATION/SUPRE-MDER,
Lessee may at any time after completion of construction under this Lease
terminate or surrender such Lease with the written consent of City upon six
(6) months' written advance notice. Otherwise, Lessee shall not vacate,
abandon, terminate nor surrender the premises at any time during the term
hereof and if Lessee shall abandon or vacate the premises, or be dispossessed
by process of law or otherwise all personal property belonging to Lessee left
upon the premises shall be deemed abandoned at the option of City.
Page 6 of 10
13. NO ENCUMRANCE BY LESSEB OF REAL PROPERTY.
Lessee shall in no way encumber, mt)rtgage or hypothecate nor pledge as
security for any debt all or any portion of the premises demised hereunder nor
improvements thereon except with the written consent of City.
14. DESTRUCTION OF PREMISES.'
In the event of a partial destruction of the premises during the term of
this Lease, from any cause whatsoever, Club shall forthwith repair all damages
at its own expense, commencing within sixty (60) days from the date of loss or
destruction. In the event that Club does not within sixty (60) days from the
date of loss or destruction commence repairs or reconstruction, City may, in
writing, deliver to Club a demand that within thirty (30) days of such notice,
Club either commence reconstruction or abandon this Le-ise. In the event Club
opts to abandon the Lease, all improvements remaining thereon shall become
property of City. This shall in no way be deemed a waiver of any other legal
right by either party hereto.
Page 7 of 10
15. NOTICES.
All notices required under this Lease shall be given in writing, by
first-class mail with postage prepaid to the following addresses:
City shall be: *City Managar
P. O Box 3006
Lodi, CA 95241-1910
Club shall be: Boys' & Girls' Club of Lodi
P. O. Box 244
Lodi, CA 95241
16. ASSIGNMENT OR SUBLE'iTING.
Club shall not assign this Lease or sublet any portion of O?e premises
erected hereunder without the prior written consent of City, which shall not
be unreasonably withheld. Any assignment or subletting without the . ,nsent of
City shall be void and, at the option of the City, may terminate this
Lease.
Page 8 of 10
17. APPROVAL OF CONSTRUCTION PIANS BY CITY PRIOR TO CONSTRUCTION OR REMODEL.
Club shall, pricr to the commencement of construction, reconstruction, or
substantial remodeling of the premises, submit such plans in advance tc the
City for approval_
18. ENTIRE AGRSEMENT.
This lease constitutes the entire understanding and agreement between the
parties hereto. There shall be no modifications without the written consent
of both parties. The titles contained in the Lease ax. provided for
convenience orly and are not controlling in any interpretation hereof.
Page 9 of 10
IN WITNESS WHEREOF, the parties hereto ha, set their hands the day and
year first hereinabove mentioned.
CITY O:i LODI,
a municipal corporation BO'.S AND GIRLS CLUB OF LOD:
THOMAS A. PETERSON
City Manager
ATTEST:
By.
APPROVED AS TO FORM:
JEVNIFER M. PERRIN BOBBY W.MCNATP
City Clerk City Attorney
Page 10 of 10
AGRBbG/TXTA.01V