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Home My WebLink AboutR07-Economic Development Agency -- - - - "-' ......~. .-- Redevelopment Agency · City of San Bernardino 300 North "D" Stree~ Fourth Floor . San Bernardino, California 92A18 (714) 384-5081 FAX (714) 888-9413 ..In~~ w. '- Steven H. Dukett Executive Director APRIL 10, 1989 WOOLWORTH BUILDING - REVISED THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS AGREEMENT WITH CENTRAL CITY COMMERCE CENTER Synopsis of Previous Commission/Council/Committee Action: 02-21-83 Resolution No. 83-53 adopted a Parking License Easement Agreement, Central City Commerce Center, Woolworth Building. 02-18-84 Approval in concept of Amendment to Lease. Agency Counsel instructed to prepare. (Continued on page 2) (MAYOR AND COMMON COUNCIL) '- Recommended Motion: Adopt the attached RESOLUTION AUTHORIZING THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. (Continued on page 3) Director Supporting data attached: Yes FUNDING REQUIREMENTS: None Ward: Project: 1st CC Commission Notes: - SHD:GW:sm:4967G Agenda of: APRIL 17, 1989 Item No. 7 - - '-' '...,,'; -........- Synopsis of Previous Commission/Council/Committee Action: 03-07-85 Resolution No. 4737 adopted an Agreement amending Parking License and Easement Agreement. 06-02-86 Resolution No. 4884 authorized execution of a Second Amendment to Parking License and Easement Agreement. 06-02-86 Resolution No. 86-192 consented to execution of a Second Amendment to Parking License and Easement Agreement. 08-15-88 Resolution No. 5143 authorized execution of a Third Amendment to Parking License and Easement Agreement. 08-15-88 Resolution No. 88-306 consented to execution of a Third Amendment to Parking License and Easement Agreement. 04-06-89 The Redevelopment Committee reviewed the item and recommended its adoption. - '- SHD:GW:sm:4967G 2 ".'- '-- - - - - - '-' ,,,,' (COMMUNITY DEVELOPMENT COMMISSION) RESOLUTIOl~ OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER. SHD:GW:sm:4967G 3 ---- - ........ STAFF REPORT '- This is to request that the Commission approve and the Mayor and Common Council consent to the approval of the attached revised Third Amendment to a Parking License and Easement with Option Rights agreement with the Central City Commerce Center Ltd., ("Owners"). The agreement provides for the leasing of 80 parking spaces in the 3-level parking structures to allow development of the Woolworth Building. In August, 1988, the Commission approved a Third Amendment which provided among other things that the Owners would contribute $16,412 toward the improvement of the parking structure facade. This amendment was never executed by the Owners. In the interim, they have caused $17,000 worth of additional improvements to be constructed on the facade of the Woolworth building. The basic effect of this revision to the third amendment is to credit these additional expenditures and delete the requirement to contribute to improving the parking structure. BACKGROUND On April 21, 1983, the Agency entered into an Agreement with the Owners which provides for the leasing of 80 spaces in the 3-level parking structure (35 spaces on the third level and 45 spaces on the ground floor in an area referred to as the "J" site). The Agreement provided that the Owners were obligated to pay $20/month plus Consumer Price Index adjustments for each parking space. -""'- The Commission granted two amendments relieving payments until a tenant could be obtained. On August 15, 1988, the Commission approved a Third Amendment to the Parking License and Easement with Option Rights which delayed the $20 per month per space payment until January I, 1995, but required the Owners to pay $5.60 per month per space maintenance and operation costs. In addition, the Owners agreed to spend up to $50,000 to make such improvements as required by the Main Street Program to the exterior building and parking structure facade. The Owners were to spend approximately $33,588 on the building facade, leaving $16,412 to be applied to the parking structure facade. The amount for the parking structure was to be paid to the Agency upon occupancy of the building. To date, the Owners have incurred more than $50,000 in exterior improvements to the building alone. These additional items include exterior awnings, exterior plaster and additional plaster which were not required under the original agreement. The Owners have, therefore, requested that the Agency consider crediting their additional building facade improvement expenses against their obligation to contribute to improvements to the parking structure. -,~....""" SHD:GW:sm:4967G 4 - - --- '-" i '<,/ RECOMMENDATION The terms of the revised Third Amendment are virtually identical with the previously approved Third Amendment except that the payment of 516,412 for parking structure improvements has been substituted with the additional improvements that have been made on the facade of the bUilding. The cost of these building facade improvements exceed the 516,412 amount which was to be applied to the parking structure. The Owners have been most cooperative with the Agency and Main Street. The revised agreement has been approved as to form and legal content by Agency Counsel and signed by the Owners. The Redevelopment Committee reviewed this item at its meeting on April 6, 1989 and recommended approval. It is, therefore, requested that the Commission approve and the Mayor and Common Council consent to the approval of the revised amendment. SHD:GW:sm:4967G 5 - - -- '-"" '- BIRD AMBNDMBNT '1'0 PAR1tING LICENSB AND BASBMBNT WITH OPTION RIGll'rS BIS DIRD AMBNDMBNT entered into effective the day of -- , 1989, between the CXlMMUNl:TY DBVBLOPMBNT CClMMXSSION OF 'l'BB CITY OF SAN BBRHARDDIO, CALIFORNIA, hereinafter -Agency", and CBNTRAL CXTY COMMBRCB CBNTBR, a California general - partnership, as licensee, hereinafter -Center", and consented to by the CITY OF SAN BERNARDINO, hereinafter "City", amends that certain Parking License and Easement with Option Rights entered into between the parties on the 21st day of April, 1983, as previously amended pursuant to Resolution No. 4737 of the Community Development Commission and Resolution No. 85-84 of the City of San Bernardino, and as further amended effective June 2, 1986, pursuant to Resolution No. 4884 of the Community Development COmmission and Resolution No. 86-192 of the City of San Bernardino. RECITALS The parties hereto desire to amend that certain Parking License and Easement with Option Rights, hereinafter referred to as the "Agreement", heretofore entered into as specified above to delay the start of a portion of the 820.00 per space, per month, lease payment, to provide for exterior maintenance and appearance, to provide for joining a maintenance and security district if one is formed for the Main Street Revitalization '- Project, and to provide for approval by the Agency of exterior building and parking area facade improvements in keeping with the DAB:cez December 22, 1988 1 - - - - -- -~", J . '. /"""""" ~ Ma~n S~r.e~ Rev~~al~za~~on Projec~. IMPLEMENTATION The parties here~ofore agree ~a~: A. Paragraph 2.5 as added to the Agreement by the First Amendment dated April 4, 1985, is hereby amended to read as follows: -2.5 Notwithstanding the provisions of Section 2.3 above, payments by Center, as ~ licensee, for the monthly parking space charges shall be postponed until January 1, 1995, at which time the monthly charges shall begin to be due and to be paid by Center to Agency. Except that upon execution of this Third Amendment, Center shall commence and continue to pay the operation and maintenance costs for said parking spaces to Agency as periodically established. All sums accrued and past due for monthly parking space charges are hereby excused, and shall not become due. On January 1, 1995, the licensee shall forthwith commence monthly payments at the rate of $20.00 per month, per space, for .- each of the parking spaces included in the 'J' building and for each of the parking spaces covered by this agreement in the ~ parking structure. This amendment shall have DAB:cez December 22, 1988 2 - . , . ._U_._._.._,_.,.__ __ ",,,.... , '- no effec~ wha~soever upon paymen~ of ~he $13,000 annually ~nvolv~ng reimbursemen~ ~or ~he cos~ of .s~abl~shing parking spaces ~n ~he 'J' building, an4 ~e mon~hly per apace charge shall be subjec~ ~o a4jus~men~ perio4ically as provi4e4 for in Sec~ion 2.3.w B. Paragraphs 2.6, 2.7 an4 2.8 are hereby a44e4 ~o ~he agreemen~ ~o rea4 as follows: W2.6. C.n~er shall provi4e an4 .ain~ain ex~erior main~enance an4 appearance of ~he -- Woolwor~h bui14ing ~o ~he sa~isfac~ion of Agency an4 hereby agrees ~o jOin a main~enance an4 securi~ dis~ric~ if one is forme4 for ~he Main S~ree~ Revi~aliza~ion Projec~ or any similar 4own~own rehabili~a~ion program.w w2.7. Cen~er agrees ~o make such 1mprovemen~s as are require4 by ~he Main S~ree~ Revi~aliza~ion Projec~ or any similar 4own~own rehabili~a~ion program ~o ~he ex~erior buil41ng an4 parking area faca4e, provi4e4 ~ha~ ~he cos~ of any such improvemen~s shall no~ excee4 ~he ~o~al sum "..-"" , of $50,000 inclu41ng cos~s in ~he approxima~e amoun~ of $33,588 for ex~erior improvemen~s '"",,-, as presen~ly planne4. The wes~ wall of ~he DAB:cez December 22, 1988 3 - , '-' ";,.,,"'- '. . , ~ buildJ.ng i. to be resurfacal! .in such a lIIanner as ~o be compa~ible vi~ anI! a~chi~ecturally conform ~o ~he ezis~ing north vall. All such propose I! .improvements shall be f.irs~ subm.1~~el! ~o ~e Agency for approval,- -2.8 A wrough~ .iron securi~y fence ~o be approvel! by ~he Projac~ Manager of San Bernarl!ino Down~own Main Street. Inc. shall be .instal leI! arounl! ~he ~ransformer. In /,a_ al!l!ition. ~he ~ransformer pal! shall be designel! ~o drain ~o ~e s~reet.- 3. In all other respects ~he Parking License anI! Easement with Op~ion Rights as anterel! .into on ~he 21st day of April. 1983. and as previously amenl!ed. shall remain .in full force and ~ effect. IN WITNESS WBEREOF. ~he parties have ezecuted this Agreement effective as of the date anI! year f.irst .et forth above. COMMUNITY DEVELOPMEN'l' COMMISSION CEN'l'RAL CITY COMMERCE CEN'l'ER OF THE CITY OF SAN BERNARDINO A Cal.if. General P ers p I By Secretary By By Chairman ,............, Approved as to form .::d)j~;':~~t7/1. , _ J 7_ '- DAB:cez December 22. 1988 4 . '. , -- -."..... .--- '- r-o'""'- .--~ -- ---..-. .----. , - The C1 ty of San BernarCl1no hereby consents to t:h1s Agreement. ATTEST: City Clerk Approved .. to fOZ'll and legal oontent: City Attorney DAB: cez December 22, 1988 CITY OF SAN BBRHARDINO By Bvlp .1f1looz. Mayor 5