HomeMy WebLinkAboutRS02-Redevelopment Agency
'.~ENT AGENCY.~ST FOR ~ISSION/COUNCIL A.
From:
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Glenda Saul, E:ncutive Director
Redevelopment Agency
Subject:
STOB.GES CENTER FOR THE
PERP'OllMING ARTS - LEASE
AGREEMENT BETWEEN
AGENCY AND CITY
Om: June 8, 1987
Synopsis of Previous Commission/Council ection:
10-5-81 Resolution 4249 - authorizing execution of option agreement with San
Bernardino City Unified School District for a lease/purchase on
Sturges Junior High School buildings.
7-6-82 Resolution 4345 - authorizing execution of contract for professional
services with City Engineering Departllent for parking lot, Sturges
AuditoriulI.
11-1-82 Resolution 4403 - authorizing IDA to reillburse City for costs
relating to construction of parking lot for Sturges AuditoriUDl.
9-10-84 Resolution 4663 - authorizing DDA between RDA and Sturges Center for
the Arts.
1-21-85 Resolution 4704 - authorizing and directing execution of agreement
for sub-lease of parking area to Sturges Center for the Arts.
("Ol1th1"9~ OR PRB9 2)
Recommended motion:
Move to open joint public hearing. Move to close joint public hearing.
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(COMMllHITY DEVELOPMENT COMMISSION)
A. MOVE TO ADOPT RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND THE llEDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR THE STOB.GES CENTER FOR
THE ARTS.
(MAYOR AND COMMON COUNCIL)
B. MOVE TO ADOPT RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE LEASE OF THAT
REAL PROPERTY AND IMPROVEMENTS COMMONLY KNOWN AS THE STOB.GES CENTER FOR THE PERFORMING
ARTS, LOCATED AT 780 NORTH -E- STREET, WITHIN THE CENTRAL CITY NORTH llEDEVELOPKENT
AREA, TO THE CITY OF SAN BERNARDINO, AND MUNICIPAL CORPORATION, BY THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO (HEALTH AND SAFETY 4: SECTION 33433).
M~ v_I
.' Signature
Contact person:
Glenda Saul
Phone:
383-5081
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Supponing data attached:
YES
Ward:
FUNDING REQUIREMENTS:
Amount: $
N/A
Project: CCN
Data: June 15, 1987
No edverse Impact on City:
Ceil Notes:
266OG/JW/SR
6/15/87
Agenda Item No,~5- c2.
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Prom:
Glenda Saul, Executive Director
STOB.GES CENTER. POR THE
PERFORHING ARTS - LEASE PROM RDA
TO CITY
SYNOPSIS OP PREVIOUS COMMISSION/COUNCIL ACTION (Continued froa Page 1)
5-11-87 Ploor aotion authoriz1Dg Jl.edeve1opaent Agency to exercise its right to
repurchase Sturges Auditorium for tl.OO, and directiDg Agency Counsel to
prepare appropriate Grant Deed and long-tera lease with the City.
6-1-87 Approved and set joint public heariDg for 6-15-87 at 11:00 a.a.
266OG/JW/SR
6/15/87
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A LEASE AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDIND POR THE STURGES CENTER FOR THE
ARTS.
WHEREAS, the Redevelopment Agency of the City of San
Bernardino (-Agency-) is the owner of certain property, together
with improvements thereon, known as the Sturges Center for the
Arts, located at the Southwest corner of -E- Street and Eighth
Street in the City of San Bernardino; and
WHEREAS, the City of San Bernardino wishes to lease the
Sturges Center for the Arts from the Agency in order to provide a
art activity center for the residents of the City of San
Bernardino and to facilitate redevelopment of nearby property;
and
WHEREAS, a Lease Agreement (-Agreement-) has been prepared
and is attached hereto as Exhibit -A-, in order to allow the City
to operate and maintain the Sturges Center for the Arts for a
period of ten (10) years at a nominal, One Dollar ($1.00) per
year lease cost; and
WHEREAS, the City through its Recreation, Parks and
Community Development Department will operate and maintain in all
respects, the Sturges Center for the Arts.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING
ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Agency hereby approves the Agreement
attached hereto as Exhibit -A- and authorizes the Agency Chairman
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1 and the Secretary to execute the Agreement on behalf of the
'e 2 Agency.
3 SECTION 2. This Resolution shall take effect immediately
4 upon adoption.
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5 ADOPTED:
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6 Approved as to Legal Porm and Adequacy:
Counsel to the Commission
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RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING THE lEASE OF THAT
REAL PROPERTY AND IMPROVEMENTS COMMONLY KNOWN AS THE STURGES CENTER
FOR THE PERFORMING ARTS, lOCATED AT 780 NORTH "E" STREET, WITHIN THE
CENTRAL CITY NORTH REDEVELOPMENT AREA, TO THE CITY OF SAN BERNARDINO.
AND MUNICIPAL CORPORATION, BY THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO (HEALTH AND SAFETY CODE SECTION 33433).
(To be given out at meeting.)
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'R~VELOPMENT AGENCY.~ST FOR ~ISSION/COUNCL A~
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STAFF REPORT
Staff rec~ends that the Commission authorize the ezecution of a lease of Sturges
Auditorium frOll the Redevelopllent Agency to the City of San Bernardino.
BACKGROUND
Sturges Auditorium vas acquired by the Redeve10plllent Agency in 1981 for
$181,802.63. An additional $150,000 vas spent to refurbish the building. On
November 1, 1984, a Disposition and Joint Deve10plllent Agreellent vas ezecuted
between the Agency and Sturges Center for the Arts. The Sturges Center purchased
the auditorium frOll the Agency for $1 to be used as a fine arts facility. The
obligation of the Sturges Center vas to utilize the building for the promotion of
fine arts within the San Bernardino community.
On April 21, 1987, the Foundation gave notice of its wish to sell the Auditorium
to the City. The agreement with the Agency gave the Agency a right to purchase
the Auditorium for one dollar.
On May 7, 1987, the Redevelopment COIIIIII1ttee reviewed the request and reco_ended
that the Agency ezercise its right to repurchase the property for $1. The
Committee further reco_ended that the Center then be leased to the City on a
long-term basis for performing arts purposes. The City vou1d be responsible for
alll18intenance, security, utilities and insurance. The recommendation vas made
because the Agency would have a greater f1ezibi1ity to resell the property at some
point in the future, if it is determined that it would be to everyone's best
advantage.
On May 11, 1987, the COIIIIII1ssion authorized the Agency to proceed with acquisition
of the Auditorium and directed the preparstion of a long-term lease to the City.
Before the Redevelopment Agency can lease Sturges Auditorium to the City, a public
hearing must be held. Both the Co_unity Deve10plllent Commission and the Mayor and
Common Council need to hold a public hearing concerning the lease.
The approval of the Lease will be considered following the Public Hearing to be
held June 15, 1987. By that time both the City Attorney and the attorney for the
Sturges Center will have had time to review and comment on the draft lease.
Attached is the draft lease and the SWIIII8ry of Financial Aspects required for the
Public Hearing.
266OG/JW/SR
6/15/87
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SUMMARY OF FINANCIAL ASPECTS
OF A PROPOSED AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
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PROPOSED AGREEMENT: lease of the Sturges Center for the Performing Arts
between Redevelopment Agency of the City of San Bernardino (lessor) and
the City of San BernardIno (lessee).
PROJECT AREA: Central City North
It Is proposed that the Redevelopment Agency of the CIty of San
BernardIno lease to the City of San BernardIno the property descrIbed on
the attached ExhIbit "A".
1) The cost of the agreement to the Agency, Including land acquIsItIon
cost. clearance costs, relocatIon costs. the costs of any
Improvements to be provIded by the Agency, plus the expected
Interest on any loans or bonds to fInance the lease Is }1.OO.
2) The estImated value of the Interest to be conveyed or leased.
determIned at the hIghest uses permItted under the plan Is not less
than }500.000.00.
3) The .sum of the lease payments Is for the orIgInal term of the lease.
exclusIve of any extensIons. Is $10.00, The reason thIs Is less
than the faIr market value Is:
The Sturges Center for the PerformIng Arts Is a publIc use facIlIty. the
sole purpose of whIch Is to serve the communIty as a fIne arts
auditorIum. Since the tIme of the InItIal purChase by the Redevelopment
Agency from the San Bernardino CIty UnIfIed School DistrIct. It has
always been Intended that the buildIng be a public facIlIty for the
enjoyment of the cItIzens of San BernardIno.
The Agency orIgInally entered Into a DisposItIon and Development wIth
the Sturges FoundatIon In September, 1984, after a duly notIced publIc
hearIng wherein the Agency commItted to make avaIlable certaIn tax
Increment monIes for the renovation of the facilIty. The Agency has
elected to exercIse Its option to repurchase the renovated facilIty for
$1.00 and seeks at thIs tIme to lease the facIlIty to a publIc bOdy for
use as a fIne arts facIlIty.
The CIty of San BernardIno desires to lease the facIlity for $1.00 per
year for a term of 10 years subject to renewals. The CIty also has the
rIght of fIrst refusal to purChase the facilIty. Under the lease the
CIty Is responsIble for all maintenance, security, utilIties and
Insurance.
The City Is better equIpped than the Redevelopment Agency to handle the
ongoIng maIntenance of the facIlIty. AdditIonally, since the building
Is for the benefIt of the cItIzenry, It Is only fItting that the City
pay all operatIon and maintenance costs assocIated wIth this facIlity.
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EXHIBIT -A-
LEGAL DESCRIPTION
A PORTION OF LOTS 7 AND 8, BLOCK 53, CITY OF SAN BERNARDINO,
IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE
OF CALIFORNIA. AS PER MAP RECORDED IN BOOK 7 OF MAPS. PAGE 1,
RECORDS OF SAID COUNTY.
BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 8; THENCE SOUTH
o DEG" 09' 14- EAST ALONG THE EAST LINE OF SAID LOT 8, A
DISTANCE OF 152.50 FEET; THENCE SOUTH 89 DEG" 57' 12- WEST
PARALLEL WITH THE NORTH LINE OF SAID LOTS 7 AND 8, A DISTANCE
OF 200.00 FEET; THENCE NORTH 0 DEG. 09' 14" WEST PARALLEL WITH
SAID EAST LINE, 152.50 FEET TO SAID NORTH LINE; THENCE NORTH
89 DEG. 5~' 12- EAST 200.00 FEET TO THE POINT OF BEGINNING.
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1 LEASE
2 This Lease is made and entered into this day of
3 , 1987, by and between the REDEVELOPMENT
4 AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and
5 politic (-Agency-) and the CITY OF SAN BERNARDINO, a municipal
6 corporation (-City-).
7 WIT N E SSE T H:
8 WHEREAS, the Agency owns a certain parcel of real property,
9 together with improvements thereon (-Property-) generally located
10 at the corner of -E- Street and Eighth Street in the City of San
11 Bernardino, the exact legal description of which is set forth at
12 Exhibit -B- attached hereto and incorporated herein by reference;
13 and
14 WHEREAS, the City desires to use the Property as an arts
15 center, a theatre and art gallery, and to house various art
16 oriented activities for the benefit of residents of the City of
17 San Bernardino; and
18 WHEREAS, the Agency desires to enter into this lease with
19 the City at below market rental payments in order to facilitate
20 redevelopment of nearby property and to provide benefits and
21 services to the residents of the City.
22 NOW, THEREFORE, in consideration of the rental hereinafter
23 reserved and agreed to be paid to the Agency by the City and the
24 mutual promises, obligations, agreements and covenants
25 hereinafter set forth and the faithful performance thereof, the
26 parties mutually agree as follows:
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1 1. prooertv Leased. The Agency hereby leases and lets to
2 the City and the City hires and leases from the Agency, those
3 certain premises located at the Southwest corner of -E- Street
4 and Eighth Street, City of San Bernardino, County of San
5 Bernardino, State of California, more particularly described in
6 Exhibit -B- annexed hereto incorporated by reference.
7 2. ~. This Lease shall be for a period of ten (10)
8 years, commencing June 15, 1987, subject to renewals and various
9 options as set forth hereinafter. This Lease shall terminate at
10 noon on the fifteenth day of June, 1997, unless otherwise
11 extended by mutual consent of the parties.
12 3. Rental PaYment. The City shall pay to the Agency each
13 year, commencing June 15, 1987, and on June 15 of each year
14 thereafter, a rental payment in the amount of $1.00 per year.
15 4. ~. The demised premises shall be used for various
16 arts purposes. Any lease, sublease or tenancy agreement covering
17 any portion of the premises shall be subject to the approval of
18 the Community Development Commission of the City of San
19 Bernardino.
20 5. Maintenance and Reoairs. The City represents that it
21 is familiar with the leased premises and has knowledge of the
22 present conditions that exist thereon. The City shall, at its
23 own expense, maintain the leased premises and all improvements
24 thereon in good order, condition and repair. The Agency shall
25 not be responsible for any repairs of any kind whatsoever during
26 the term of this Lease. The City shall provide or cause to be
27 provided all security service, custodial service, janitorial
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1 service, repair service, landscaping service, roofing, plumbing,
2 painting, heating, ventilation, air conditioning and any other
3 service of any kind whatsoever in connection with the operation,
4 maintenance and repair of this property. The City shall keep
5 the leased premises and any and all improvements thereon free
6 and clear of all liens, charges and encumbrances and shall, upon
7 expiration of the term of this agreement, return the premises
8 to the Agency in as good condition as when first assumed by the
9 City, normal wear and tear excepted.
10 6. InsDections. The Agency, its agents, officers and
11 employees, may enter upon the premises at such reasonable times
12 during the City's normal business hours as the Agency deems
13 necessary for the purpose of the inspection of the premises to
14 determine whether the terms and conditions of the lease are being
15 carried out.
16 7. OwnershiD. The City hereby acknowledges and accepts
17 the title and paramount ownership and interest of the Agency to
18 the leased premises and the City agrees not to claim, challenge
19 or contest such title, ownership and entire interest of the
20 Agency.
21 8. Utilities. The City shall pay for all water, gas,
22 heat, telephone service, refuse service, and any and all other
23 services which may be supplied to the premises.
24 9. Defaults. In the event the City shall be in default in
25 the payment of rentals or other charges hereunder or shall
26 otherwise breach its covenants or obligations hereunder, and
27 shall be and remain in default for a period of thirty (30) days
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1 after notice from the Agency to the City of such default, the
2 Agency shall have the right and privilege of terminating this
3 Lease and all of its options and declaring the same at an end,
4 and of entering upon and taking possession of said premises, and
5 shall have the remedies now or hereafter provided by law for
6 recovery of rent, repossession of the premises and damages
7 occasioned by such default. If such default should occur, then
8 the Agency shall have the right to take possession of and
9 appropriate to itself without payment therefor any property of
10 the City or anyone claiming under it then remaining on said
11 premises..
12 10. Surrender UDon Termination. Upon revocation,
13 surrender, expiration or other termination of this Lease, the
14 City shall quietly and peaceably surrender the leased premises in
15 as good condition as same was at the time of the City's entry
16 thereon, reasonable wear and tear excepted, subject to the
17 conditions herein set forth.
18 13. Insurance. The City agrees to procure and maintain
19 in force during the term of this Lease and any extension thereof,
20 at its expense, a pOlicy or pOlicies of insurance against loss or
21 damage to the leased premises, appurtenances and permanent
22 equipment, resulting from fire, lightning, vandalism, malicious
23 mischief, and such perils ordinarily defined as Wextended
24 coverageW and other perils. The City agrees to procure and
25 maintain in force during the term of this Lease and any
26 extension thereof, at its expense, or to provide through self-
27 insurance, public liability insurance adequate to protect against
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1 liability for damage claims through public use of or arising out
2 of accidents occurring in or around the leased premises. Any
3 insurance policies shall provide coverage for the Agency's
4 contingent liability on such claims or losses, and the agency
5 shall be named as an additional insured on any such policies.
6 All insurance shall be provided by City in such manner and in
7 such amount as City provides for buildings owned by the City.
8 City is hereby specifically authorized to self-insure for public
9 liability, and loss on damage to the leased premises, and for
10 such other risks as are assumed under this lease. The City
11 shall furnish the Agency, concurrently with the execution
12 hereof, with satisfactory evidence of the insurance required, and
13 evidence that each carrier, if any, or the City if self-insured,
14 is required to give the Agency at least ten (10) days' prior
15 notice of the cancellation or reduction in coverage of any policy
16 during the effective period of this Lease. The City agrees that
17 if the above-described coverages are not kept in force during
18 the entire term of this Lease and any extension thereof, the
19 Agency may procure the necessary insurance, pay the premium
20 therefor, and that such premium shall be repaid to the Agency as
21 an additional rental installment following the date on which such
22 premiums are paid.
23 14. Citv's Riaht of First Refusal. If Agency determines
24 to sell all or any part of the premises, Agency shall notify City
25 of the terms on which Agency will be willing to sell.
26 If City, within forty-five (45) days after receipt of
27 Agency's notice, indicates in writing its agreement to purchase
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1 the premises or a part of the premises on the terms stated in
2 Agency's notice, Agency shall sell and convey the premises or a
3 part of the premises to City on the terms stated in the notice.
4 If City does not indicate its agreement within forty-five (45)
5 days, Agency thereafter shall have the right to sell and convey
6 the premises or a part of the premises to a third party on the
7 same terms stated in the notice. If Agency does not sell and
8 convey the premises or a part of the premises with ninety (90)
9 days, any further transaction shall be deemed a new determination
10 by Agency to sell and convey the premises or a part of the
11 premises and all provisions of this paragraph shall be
12 applicable.
13 If City purchases all of the premises, this lease shall
14 terminate on the date title vests in City,
15 15. Damaae bv Fire. Earthauake. etc. It is expressly
16 understood and agreed that the rental and any other obligations
17 assumed by the City hereunder shall become due only in
18 consideration of the right to occupy and use the leased premises
19 from year to year and, except as herein provided, it is the
20 responsibility of the Agency to provide such right of occupancy
21 and use at all times. In the event of destruction or damage to
22 the leased premises by fire or earthquake or other casualty or
23 events so that they become wholly or partly unusable, the
24 Agency, at its option, may do either of the following:
25 (a) Rebuild and repair the leased premises so that they
26 shall be restored to use, in which case this Lease shall remain
27 in full force and effect. Any excess of insurance proceeds
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resulting from such destruction or damage over the amount
expended for such repairing or rebuilding, shall be paid to the
Agency, or
Cb) Declare this Lease terminated and use any money
collected from insurance against the destruction of or damage to
the leased premises in any manner it deems fit.
17. Eminent Domain. If the whole of the leased premises,
or so much thereof as to render the remainder unusable for the
9 purposes for which the same was leased, shall be taken under the
power of eminent domain, then this Lease shall terminate as of
the date possession shall be taken. If less than the whole of
the leased premises shall be taken under the power of eminent
domain, and the remainder is usable for the leased purposes, then
this Lease shall continue in full force and effect and shall not
be terminated by virtue of such taking and the parties may waive
the benefit of any law to the contrary, in which event there
shall be partial abatement of the rent hereunder in an amount
equivalent to the prorated use of the remaining premises. Any
ward made in eminent domain proceedings for the taking or
damaging of the leased premises in whole or in part shall be
paid to the Agency, together with any other money which shall be
or may be made available for such purpose,
17. Assianments. The City shall not assign this Lease
without obtaining the prior written consent of the Agency.
18. Non-Discrimination. The City hereby covenants by and
26 for itself, its heirs, executors, administrators, and assigns and
27 all persons claiming under or through it, and this Lease made
28 and accepted upon and subject to the following conditions:
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1 That there shall be no discrimination against or
2 segregation of any person or group of persons, on account of
3 race, color, creed, national origin, or ancestry, in the leasing,
4 subleasing, transferring, use, occupancy, tenure, or enjoyment of
5 the premises herein leased, nor shall the City itself, or any
6 person claiming under or through it, establish or permit any such
7 practice or practices of discrimination or segregation with
8 reference to the selection, location, number, use, or occupancy
9 of tenants, lessees, sublessees, subtenants, or vendees in the
10 premises herein leased.
11 19. Validitv. If anyone or more of the terms,
12 provisions, promises, covenants, or conditions of this Lease
13 shall to any extent be adjudged invalid, unenforceable, void or
14 voidable, for any reason whatsoever, by a court of competent
15 jurisdiction, each and all of the remaining terms, provisions,
16 promises, covenants, and conditions of this Lease shall not be
17 affected thereby and shall be valid and enforceable to the
18 fullest extent permitted by law.
19 20. Effect of Aaencv's Waiver. The Agency's waiver of
20 breach of one term, covenant, or condition of this Lease is not a
21 waiver of breach of others, nor of subsequent breach of the one
22 waived. The Agency's acceptance of rent payments after breach is
23 not a waiver of the breach, except of breach of the covenant to
24 pay the rent payment accepted.
25 21. Possessory Interest Taxes. The City covenants during
26 the term of this Lease to pay, when due, all taxes and
27 assessments that may be assessed or imposed upon the City's
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1 possessory interest in and to the premises and on any personal
Ie:: 2 property that is located on the demised premises. The City
3 agrees to indemnify the Agency and pay all sums due hereunder
4 forthwith upon demand therefor by the Agency in the event that
5 the Agency is required to make any such payments arising from the
6 possessory interests of the City, its agents, assignee or
7 sublessees.
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22. Notices. All notices herein required shall be in
writing and delivered in person or sent by certified mail,
postage prepaid, addressed as follows:
Agencv
Redevelopment Agency of the
City of San Bernardino
300 North -D- Street, Rm 320
San Bernardino, CA 92418
Attn: Executive Director
klli
City of San Bernardino
300 North -D- Street
San Bernardino, CA 92418
Attn:
23. Recordation. The Agency may have this Lease recorded
in the Office of the County Recorder, San Bernardino County,
State of California, together with the appropriate resolution of
the governing body of the Agency.
24. Time of Essence. Time is of the essence herein.
IN WITNESS WHEREOF, the parties have executed this Lease on
the day and year first above written.
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By
Chairman
ATTEST:
Secretary
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1 CITY OF SAN BERNARDINO
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By
3 Mayor
ATTEST:
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City Clerk
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7 Approved as to form and legal content:
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