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HomeMy WebLinkAboutRS02-Redevelopment Agency '.~ENT AGENCY.~ST FOR ~ISSION/COUNCIL A. From: c: 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. c (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 1 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. . ,.-.. --.. <C c c :> f' \ . ~ ,) 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 C 1 C 2 3 4 5 6 7 8 9 10 11 12 13 14 C 15 16 17 18 19 20 21 22 23 24 25 26 27 C 28 ~ ~ o 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 1 e, ,............ '-' :) :) 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. <C c ',",' 5 ADOPTED: 7 8 By 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 Approved as to Legal Porm and Adequacy: Counsel to the Commission 2 c. c c c (' u :) 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.) :) 'R~VELOPMENT AGENCY.~ST FOR ~ISSION/COUNCL A~ r "- <c c 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 . ",-.. '- (c r '"" c. o 0 SUMMARY OF FINANCIAL ASPECTS OF A PROPOSED AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO :) 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. 0090j c <c c c' o C) c 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. 2628G c <c c e, o o J 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: 27 28 1 'C c c c. f"""'. ""-I o :l 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 28 2 c c t c o o :) 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 ~ 3 c c ~ c o o :) 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 ~ 4 c <C. ,..... '-' c o o J 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 28 5 c c t c o o ~ 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 ~ 6 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: 7 C 1 C 2 3 4 5 6 7 8 10 11 12 13 14 C 15 16 17 18 19 20 21 ~ ~ 24 ~ c o o J c c c c o o ~ 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 ~ 8 c o o :> 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. c c 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 9 c 0 0 :) 1 CITY OF SAN BERNARDINO C 2 By 3 Mayor ATTEST: 4 5 City Clerk 6 7 Approved as to form and legal content: 8 9 10 11 12 13 14 (C 15 16 17 18 19 20 21 22 23 24 25 26 27 C 28 10