HomeMy WebLinkAboutR03-Redevelopment Agency
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' RE~VELOPMENT AGENCY-R!'QUEST FOR e6.1SSION/COUNCIL ACTION
,li.o.om: Glenda Saul, Executive Director
)rapt: Redevelopment Agency
Subject: CENTRAL CITY COMMERCE CENTER PARKING
LEASE - WOOLWORTH BUILDING
Date: May 23, 1986
Synopsis of Previous Commission/Council action:
2/21/83
Resolution No. 83-53 adopted a Parking License Easement Agreement, Central
City Commerce Center, Woolworth Building
2/18/84
Approval in concept of Amendment to Lease. Agency Counsel instructed to
prepare.
3/7/85 Resolution No. 4737 adopted an Agreement amending Parking License and
Easement Agreement.
Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION)
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a) MOVE TO ADOPT RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A SECOND AMENDMENT TO
PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS, CENTRAL CITY COMMERCE CENTER
(WOOLWORTH BUILDING).
(MAYOR & COMMON COUNCIL)
b) MOVE TO ADOPT RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING
THE EXECUTION OF A CONSENT TO A SECOND AMENDMENT TO PARKING LICENSE AND EASEMENT
WITH OPTION RIGHTS, CENTRAL CITY COMMERCE CENTER (WOOLWORTH BUILDING).
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Signature
Contact person:
GlcuJc. Saul
Phone: 383-5081
Supporting data sttached:
FUNDING REQUIREMENTS:
"LES
Amount: $
Ward: 1
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N/A
Project: CC Elu:erpr1se Zone
Date:
June :.:, ~~llb
No adverse Impact on City:
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6/2/86
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. 'CIT~ OF SAN BERNARDlfio
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- REQUEI'r FOR COUNCIL ACTION
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STAFF REPORT
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In 1983, the Agency entered into an Agreement with the owners of the Woolworth
Building, leasing to them 80 total spaces in the 3-level parking structure -- 35
on the third level and 45 spaces on land leased by the Agency from Central City
Company (15 year lease). The cost to the Agency, under the lease agreement is
approximately $14,000 annually. Agreement also contains an option to purchase the
parking spaces during the fifteenth year of the agreement.
Under the terms of the lease, the owners of the Woolworth Building pay to the
Agency $13,000 per year for five years, for a total of $65,000 to reimburse the
Agency for the cost of construction of the 45 spaces on the ground level (referred
to as the "J" site). Owners are also obligated to pay $20/month for each parking
space. The income received by Agency is necessary to pay monthly operational
costs of about $1,172.00.
On February 18, 1985 staff presented a request from the lessee for an amendment to
the lease to provide that monthly payments not start until first occupancy of the
Woolworth Building. The Commission, recognizing the difficulties encountered,
approved the request in concept and instructed Agency Counsel to prepare the
Amendment. The First Amendment was approved March 7, 1985.
The developer is in default of his agreement with the Redevelopment Agency to
rehabilitate the Woolworth Building. He claims that the strict parking fees of
$20/space per month have discouraged prospective tenants. The First Amendment
provides that payment for parking spaces will be waived until a tenant is located.
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Cost analysis (a copy of which is attached for your review) was presented at the
last Redevelopment Committee meeting, reflecting status to date. At that time, a
Second Amendment was negotiated.which extends the agreement for two years for
which developer agreed to pay $26,000 in addition to the $65,000 heretofore agreed
to. The developer also agreed to negotiate with owner of the parking spaces,
Central City Company, to purchase said spaces prior to the fifteenth year of the
agreement as originally set out.
The Second Amendment to the Parking License and Easement Agreement is attached for
your review. .
Staff recommends approval.
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967G/JW
6/2/86
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WOOLWORTH BUILDING AGREEMENT
COST ANALYSIS
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Status as of 5/6
I. CENTRAL CITY COMMERCE CENTER - WOOLWORTH BUILDING
A. Parki ng Ll cense and Easement with Opti on
to purchase dated 4/21/83 - 20-year term
with right to extend
B. Obligations of Central Citv Commerce Center ("Center")
1. Rehab Woolworth building - commence 180
days (10/83); complete 4/84 (501 occupied)
2. Pay $13,OOO/yr, 5 yrs; totalling $65,000 -
reimburse RDA for construction of parking
of 45 spaces
3. Pay $20/mo/space ($200 x 80 sp. = $l,600/mo
upon occupancy of building (amend #1)
4. Option to buy $135,000 during 15th year
C. Obligations of RDA
1. Pay $2,750 to Central City Company -
reimbursement of capital expenditure
2. Pay $920/mo to Central City Company -
rent on 45 spaces (years 1-5)
3. Option to buy during 15th year - $135,000
D. Termination - Upon Default of Center
No tenants; no rehab
$39,000 paid (3 yrs)
$13,000 4th yr now due
o received-no leases
Not applicable at this
time
Paid - 1983
$33,028 paid to date
Not applicable at this
time
II. RDA AGREEMENT/OPTION WITH CENTRAL CITY COMPANY
A. RDA to pay $920/mo (years 1-5)
RDA to pay $l,500/mo (years 6-10)
RDA to pay $2.500/mo (years 11-15)
Exercise option during 15th year - $135,000 Not applicable at this
time
B. Term can be negotiated between parties
$33,028 paid to date
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III. SOURCE AND APPLICATION OF FUNDS
A.
Current AQreement
Source
$13,OOO/year x 5 years
(3 years paid to date - $39,000)
$65,000
Lease
20 sp x 80 x 12 = $19,200 per year
upon occupancy
Application
Construction cost - 45 spaces
Leases, $920 mo x 36 mos
Taxes 82/83 through 85/86
$46,815
33,028
13.193
B. Proposed Amendment - Two-Year Extension
Source
$13,OOO/year x 5 years
$13,OOO/year x 2 additional years
Lease $20/space x 80 x 12 upon occupancy
$65,000
26,000
Application
Construction
Lease $920 x 60 mos
Taxes 82/83 through 87/88
46.815
55,200
21.193
Tax Increment
$400,000 rehab x 1% - $4,000
$32,208/$4,000 - 8 years assistance
Rent of spaces to offset future costs.
1808K/ def
2
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$65.000
93.036
$(28,036)
$91,000
123.208
$<32,208)
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RESOLUTION NO.
1
'-, RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
2 CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF
A SECOND AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION
3 RIGHTS, CENTRAL CITY COMMERCE CENTER (WOOLWORTH BUILDING)
4 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. Th. Chairman and Secretary of the Community
Development Commission of the City of San Bernardino are hereby
authorized and directed to execute a Second 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, with such non-substantive changes to said
amendment as may be approved by the Chairman and Agency Counsel.
A copy of said amendment is attached hereto as Exhibit "1" and
incorporated herein by this reference as though fully set forth
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at length.
Dated:
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Approved as to form:
AGENCY COUNSEL
By ~~ -t: ..If", ~~ -_./
Allen R. ~~~~
The foregoing resolution was duly adopted by the following
vote, to wit:
Members
AYES:
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NAYS:
ABSENT or
ABSTAIN:
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RESOLUTION NO.
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-- RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
~. 2 DIRECTING THE EXECUTION OF A CONSENT TO A SECOND AMENDMENT TO
PARKING LICENSE AND EASEMENT WITH OPTION RIGHTS, CENTRAL CITY
3 COMMERCE CENTER (WOOLWORTH BUILDING)
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
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hereby authorized and directed to execute a Consent to a Second
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, consent to which by
the City of San Bernardino is required. A copy of said amendment
is attached hereto as Exhibit -1- and incorporated herein by this
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reference as though fully set forth at length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
day of
, 1986, by the following vote, to
wit:
Council Members
AYES:
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
, 1986.
day
of
Mayor of the City of San Bernardino
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Approved as to form:
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3 City Attorney
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SECOND AMENDMENT TO PARKING LICENSE
AND EASEMENT WITH OPTION RIGHTS
THIS SECOND AMENDMENT entered into effective the
day of
, 1986, between the COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, hereinafter
"Agency", and CENTRAL CITY COMMERCE CENTER, a California general
partnership, as licensee, hereinafter "Center", and consented to
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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 and Resolution No. 85-84 of the City of San
Bernardino.
1. 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 provide for an additional two years
within which Center is to complete the rehabilitation of the
Woolworth Building, and to provide that Center agrees to pay the
sum of $13,000 per year for each of the two additional years
beyond Center's present obligations under the Agreement. Center
further desires to actively negotiate with Central City Company
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23 to purchase the real property known as the "J" Building,
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including its parking spaces, from Central City Company prior to
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the fifteenth year of the option agreement granted to City or
26 Agency by Central City Company, if such is possible, and seeks
27 Agency and City's to such action.
28 2. Implementation. The parties therefore agree that:
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A. Section 2 of the Agreement is amended to provide
that Center agrees to rehabilitate the Woolworth Building as soon
as a tenant can be reasonably located, and to rehabilitate the
Woolworth Building to increase its valuation for tax purposes by
a minimum of $400,000, and that the rehabilitation shall be
completed not later than two years from the date of execution of
this amendment.
B. Center shall pay to Agency, on or before the 21st
9 day of April in 1988 and 1989, the sum of $13,000 each year,
10 which shall have the effect of continuing Center's payments to
11 Agency for two years beyond its present obligation.
12 C. Center agrees to actively pursue the possible
13 purchase from Central City Company of the real property known as
C 14 the .J" Building, which has been developed as improved parking
15 spaces. City and Agency consent to such action, and agree to
16 support Center's actions in that regard.
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17 3. In all other respects, the Parking License and Easement
18 with Option Rights as entered into on the 21st day of April,
19 1983, and as previously amended, shall remain in full force and
20 effect.
21 IN WITNESS WHEREOF, the parties have executed this Agreement
22 effective as of the date and year first set forth above.
23 COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
CENTRAL CITY COMMERCE CENTER
A Calif. General Partnership
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By
EVLYN WILCOX, Chairman
NICHOLAS J. COUSSOULIS,
A General Partner
By
GLENDA SAUL, Secretary
DR. JEROME T. TAUREK,
A General Partner
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1 The City of San Bernardino hereby consents to this
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3 CITY OF SAN BERNARDINO
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Mayor
6 Attest:
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9 City Clerk
10 Approved as to form:
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By
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City Attorney
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