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CC 2013-05-28_08.f. Lease Renewal for Car Corral Parking Lot► = ► i • _ ODIF1►T O: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER CONSIDERATION OF - OF • PORTION OF . R CORRAL PUBLIC • LOCATED BETWEEN 103 - FOR AN ADDITIONAL FIVE-YEAR TERM FROM • JULY RECOMMENDATION: It is recommended the City Council: 1) approve the Agreement of Lease ( "lease ") with The David Family Trust, Nancy T. Loomis Revocable Living Trust, and the Matthews Children's 1997 Irrevocable Trust; and 2) authorize the Mayor to execute the lease on behalf of the City. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The lease provides that the City pay rent for the full lease term of $60 ($1 per month for 60 months) upon acceptance, pay all applicable property taxes, and hold the owners harmless from any claims during the lease term. The City is responsible for parking lot repairs and maintenance. BACKGROUND: The City owns most of the public parking lot on the north side of East Branch Street east of Nevada Street known as the Car Corral. However, a portion adjoining 103 and 109 East Branch Street, the Village Grill and Sports Card Shop, is owned by David, Loomis, and Matthews Trusts and is leased to the City for $1 per month. The current five -year term expires on July 31, 2013 and the City requested renewal for an additional five -year term. ANALYSIS OF ISSUES: The Village Downtown core and a portion of the Village Mixed Use Districts between Traffic Way, Le Point Street, Crown Hill and Arroyo Grande Creek are served by a combination of on- street parking and public off - street parking lots, both owned and leased by the City, and numerous private parking spaces. The City owns most of Item 81 - Page 1 Olohan Alley, the Car Corral and the Le Point Street lot behind the Council Chambers, and leases some of the private properties adjoining the Car Corral. The proposed terms for the Car Corral are the same as the existing lease, with the exception of the cancellation provisions. The current lease can be cancelled by either party with one month's notice. The current proposed lease has a straight five -year term with no cancellation unless agreed to by both parties. The City is responsible for maintenance and operation of the lots and payment of property taxes, liability insurance, and holds harmless the owners from all claims. ALTERNATIVES: The following alternatives are presented for consideration: 1. Approve the agreement of lease with the David, Loomis, and Matthews Trusts and authorize the Mayor to execute it on behalf of the City; 2. Direct staff to modify the terms of the lease; 3. Reject the lease, which would effectively make nine (9) existing spaces private parking accessed from City owned driveways; or 4. Provide staff other direction. ADVANTAGES: The lease enables the City to continue to provide these parking spaces for public use. Particularly important is the elimination of the cancellation clause. The City has budgeted funds to repave the lot, but has been reluctant to invest funding on the lot until there was some level of long -term commitment provided. DISADVANTAGES: No disadvantages are identified with the recommended action, ENVIRONMENTAL REVIEW: Renewal of the lease is categorically exempt CEQA Guidelines section 15311. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, May 23, 2013. The Agenda and report were posted on the City's website on Friday, May 24, 2013. No public comments were received. Attachments: 1. Lease agreement Item 81 - Page 2 ATTACHMENT 1 t � x THIS AGREEMENT OF LEASE, made and entered into this day of , 2013, by and between NANCY GADDIS, as Trustee of the DAVID FAMILY TRUST, Est'd May 15, 1986; NANCY T. LOOMIS, as Trustee of the NANCY T. LOOMIS REVOCABLE LIVING TRUST; and SARAH M. MATTHEWS, Trustee of the MATTHEWS CHILDREN'S 1997 IRREVOCABLE TRUST dated December 30, 1997 hereinafter for the purpose of convenience sometimes collectively termed "Owner," and the City of Arroyo Grande, hereinafter for the purpose of convenience sometimes termed "Tenant ", that certain real property in the City of Arroyo Grande, San Luis Obispo County, California, more particularly described in Exhibit "A ", a copy of which is attached hereto and made a part hereof by reference. Lease: Owner hereby leases to Tenant that certain real property in the City of Arroyo Grande, San Luis Obispo County, California, more particularly described in Exhibit "A" a copy of which is attached hereto and made a part hereof by reference. Term: The term of this lease shall be for a period of five (5) years, beginning on the first day of August, 2013 and ending on the last day of July 2018. Rent: Rent for the term of the lease is Sixty Dollars ($60.00), being the sum of One Dollar ($1.00) per month, for each and every month of the term hereof, to be paid in advance upon the signing of this lease by the parties hereto. Taxes: Tenant shall pay not less than thirty (30) days before delinquency, all City and County real property taxes assessed on the leased premises during the term of this lease, or any extension thereof. The taxes shall be prorated as applicable for the taxing fiscal year for any portion of the term. The leased premises are presently assessed on the county tax records as a separate parcel and taxed as a separate parcel. All parties to this agreement mutually agree to use their best efforts to have the County continue to tax the property in the same manner. Owners shall cooperate with Tenant in promptly delivering to Tenant all tax bills received covering the leased property. Termination Prior to July 31, 2018: If both Owner and Tenant agree in writing, this lease may be terminated prior to July 31, 2018. Hold Harmless and Insurance: Tenant shall hold Owner harmless from any claim for loss or damage to person or property by reason of the occupancy and use of the leased premises, or failure to keep the premises in good condition and repair. Tenant shall keep said leased property insured for liability under its municipal blanket insurance policy, which policy shall specifically name the parties hereto. Item 81 - Page 3 Notices: All notices to be given to Owner or to Tenant shall be given by personal delivery, or, registered mail (return receipt requested) deposited in the United States post office in the City of Arroyo Grande, postage prepaid. The addresses to be used for the parties to this agreement are: Tenant: CITY OF ARROYO GRANDE 300 East Branch Street Arroyo Grande CA 93420 Owner: Michael Zimmerman P.O. Box 970 Arroyo Grande, CA 93421 Personal delivery to Owner may be made by personal delivery to Michael Zimmerman. Personal delivery to Tenant may be made by personal delivery to the City Manager, or the Director of Legislative and Information Services /City Clerk. Change of address may be made in writing, delivered to Owner or to Tenant as herein provided. Sublease: Tenant may not assign, transfer in whole or in part, or sublet any portion of the leased premises without the prior written consent of Owner. Parking Meters: No parking meters shall be permitted on the leased premises without the prior written consent of Owner. Waste, Alterations, Additions: Tenant shall not commit or suffer to be committed any waste of the said premises or permit any public or private nuisance. Tenant shall not make or suffer to be made any alterations to the leased premises without the prior written consent of Owner. Any additions or alterations, which may be permitted on the leased premises, shall become a part of said premises. Tenant shall keep all trees, bushes and shrubs on the property trimmed to a height not to exceed one (1) foot below the top of the parapet of the portion of the building situated at 101 -103 East Branch Street. Use of Premises: The premises are being leased for the sole purpose of use for off street parking, and Tenant shall not permit the premises to be used for any other purpose without the prior written consent of Owner. Owner Agent: Michael Zimmerman is appointed by the various Owners to serve as their agent in all matters pertaining to this lease. This provision may be revoked at any time by any of the individual owners giving written notice to Tenant. Repairs and Maintenance: Tenant shall, at Tenant's sole cost and expense, keep the premises in good condition and repair at all times during the term of this lease. Item 81 - Page 4 Dated: 0 •OB NANCY T. LOOMIS, TRUSTEE SARAH M MATTHEWS, TRUSTEE •'�'� •' Attest: KELLY WETMORE, CITY CLERK, DIRECTOR OF LEGISLATIVE AND INFORMATION SERVICES Approved as to Form: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.f. - Page 5 That certain real property in the City of Arroyo Grande, County of San Luis Obispo, State of California, described as follows: That certain portion of the "Hotel Lot" of the Buena Vista Tract in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to map filed for record October 2, 1885. In Book A, Page 58 of Maps in the Office of the County Recorder of said County; beginning at the most southerly corner of said Hotel Lot and running thence north 570 15' east, 97.90 feet along the southeasterly line of said lot to the true point of beginning; thence north 32° 43' 37" west, 75 feet; thence south 570 15' west and parallel with the southeasterly line of said lot, 97. 90 feet to the southwesterly line of said Hotel Lot; thence south 320 43' 37" east (record south 320 45' east) along the southwesterly line of said lot, a distance of 20 feet; thence north 57° 15' east along the line parallel with the southeasterly line of said lot, a distance of 55.90 feet to a point; thence south 320 43' 37 east along a line parallel with a southwesterly line of said lot 55 feet to the southeasterly line of said lot; thence north 570 15' east 42 feet along the southeasterly line of said lot to the true point of beginning. Item 81 - Page 6