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CITY OF SAN BERt,.ARDINO ~REQUEST .--OR COUNCIL ACTION
From:
FRED A. WILSON,
Assistant to City Administrator
City Administrator
Subject: APPROVAL OF PARKING AGREEMENT WITH
KAUFMAN WALD INVESTMENT COMPANY
RELATIVE TO GAS COMPANY BUILDING
AT 570 WEST 4TH STREET.
Dept:
Date: 1/11/90
Synopsis of Previous Council action:
NONE.
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Recommended motion:
ADOPT RESOLUTION.
~ Sign"""
Contact person:
FRED A. WILSON
Phone: 384-5122
Supporting data attached: YES
Ward:
1
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75-0262
Agenda Item No.
~
CITY OF SAN BERnARDINO - REQUEST ..-OR COUNCIL ACTION
STAFF REPORT
The Centra 1 city Parking Place Commission at their November
16, 1989 meeting, approved a parking agreement with Kaufman
Wald Investment Company relative to the Gas Company building
at 570 West Fourth street. This developer intends to
renovate the building into a 2-story retail complex totalling
approximately 33,000 square feet. Under the existing parking
standards, the proposed retail complex would require 96
parking spaces. Since only 48 spaces were existing on site,
the following arrangement was developed in order to comply
with the current parking standards and satisfy the developers
concern regarding parking availability:
1. Payment of the in-lieu parking fee for 29 parking
spaces. The Municipal Code permits an in-lieu fee
to be paid as an alternative to providing on site
parking. This fee was established in 1987 at
$10,000 per space. Under Resolution No. 89-491,
this fee may be reduced by an amount equal to the
cost of land acquisition for a parking space if the
subject property is within 600 feet of an existing
or proposed parking structure. This amendment was
developed as an incentive program to generate
funding for additional parking structures. It was
determined that the land acquisition cost for one
parking space in the downtown area is currently
$2,850.00. Reducing the $10,000 in-lieu fee by
this land acquisition cost results in an in lieu
fee of $7,150.00 per parking space for this
development. The total in-lieu fee payment will be
$207,350.00.
2. Grant the developer a 19 space parking credit
against the legal parking requirements for the
development. At the time public parking lot #1 was
constructed, an error was made by the paving
contractor relative to the boundaries of the
parking lot. An area approximately 15' x 190' (Gas
Company property) was included as part of the
public parking lot. The City agreed to provide the
Gas Company with a 19 space parking assessment
credit against the parking assessment as an alter-
native to returning the usage of the property to
the Gas Company. The developer has requested that
the 19 space credit also be credited against the
legal parking requirement. A copy of the easement
document which delineates this area is provided as
an attachment.
3. Payment of the in-lieu parking fee over a 20-year
period. Although payment of this fee is generally
made at the time of building occupancy, the
developer has indicated that he cannot meet this
requirement and ensure the viability of the
75-0264
project. As an alternative, it is proposed to
require the developer to pay 1/3 of the in-lieu fee
up front and amortize the remaining 2/3 over 20
years. The agreed upon interest rate is 2 percent
above the city's bond rate. The city Treasurer
will be responsible for annually making this
determination. The first-year payment under this
alternative would be approximately $15,000.
4. Designate 40 spaces in parking Lot #1 as one-hour
parking. The developer has indicated that this
designation is a key requirement for the success of
the building as it will provide the necessary
customer parking. Parking Lot #1 is primarily all-
day parking. Designation of one hour parking in
this lot is consistent with the concept of
providing additional public parking in the downtown
area to service visitor and customer parking needs.
5. The Developer has also requested that, at the time
a parking structure is built in Parking Lot #1,
this development be given a priority in terms of
space allocation. Their concern is to guarantee
the availability of customer parking in this
structure.
These items are reflected in the attached parking agreement.
~';;ON'
Assistant to the
City Administrator
FAW/sh
Attachment
1
2 RESOLUTION NO.
3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A PARKING AGREEMENT BETWEEN THE CITY OF SAN BERNAR-
4 DINO AND KAUFMAN WALD INVESTMENT COMPANY, A CALIFORNIA CORPORA-
TION, BY THE MAYOR OF THE CITY OF SAN BERNARDINO ON BEHALF OF
5 SAID CITY.
6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
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The Mayor of the City of San Bernardino is
SECTION 1.
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hereby authorized and directed to execute, on behalf of said
city, a parking agreement with the Kaufman Wald Investment
Company.
A copy of said agreement is attached hereto marked
Exhibit "A" and incorporated herein by this reference as fully
as though set forth at length.
SECTION 2.
This Agreement shall not take affect until
fully signed and executed by both parties. The city shall not
be obligated hereunder unless and until the Agreement is fully
executed and no oral agreement relating thereto shall be implied
or authorized.
SECTION 3.
The authorization to execute the above--
referenced agreement is rescinded
if the parties to the
agreement fail to execute it within sixty (60) days of the
passage of this resolution.
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
, 1990, by the following vote,
day of
to wit:
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city Clerk
The foregoing resolution is hereby approved this
3 day of , 1990.
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w. R. HOLCOMB, Mayor
City of San Bernardino
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Approved as to form
and legal content:
JAMES F. PENMAN,
ci ty~ttorney
./ ,.-0
BY: ~ t- (;t~,
'J
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1
PARKING AGREEMENT
2
THIS AGREEMENT is entered into as of this
3
day of
1990, by and between the CITY OF SAN
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BERNARDINO a municipal corporation (hereinafter "CITY") and the
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Kaufman Wald Investment Company (hereinafter "DEVELOPER").
CITY
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and DEVELOPER agree as follows:
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1. RECITALS
A. DEVELOPER is the owner of commercial real property in the
City of San Bernardino located at 570 West 4th Street
(hereinafter "THE PROPERTY").
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B. DEVELOPER needs 96 parking spaces for the development of
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THE PROPERTY as a retail use.
DEVELOPER cannot provide all
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required parking spaces on the site of THE PROPERTY.
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C. DEVELOPER has requested 1) the establishment of one hour
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parking for parking spaces under the control of the Central City
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Parking place Commission (hereinafter "COMMISSION") which are in
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the immediate vicinity of THE PROPERTY, 2) an agreement to pay
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any in-lieu parking fee, for required parking spaces not provided
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on the site, over a 20-year period and, 3) a 19 space parking
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credit against the number of required parking spaces in
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consideration for an easement by DEVELOPER to the CITY for an
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equivalent number of parking spaces.
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NOW, THEREFORE, the parties hereby agree as follows:
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(i) The total in-lieu parking fee, owed by DEVELOPER for the
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property shall be in the amount of $207,350.00.
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/ / /
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JFW:br[Kaufman.Agr]
March 12, 1990
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(ii)
(a)
(b)
(a)
Payment of the in-lieu parking fee shall be in
the following manner:
As permitted under SBMC
19.56.290(D) one third (1/3) of the total fee shall
be paid prior to the issuance of any certificate of
occupancy for the property or any portion thereof.
At the time of the issuance of such certificate of
occupancy, DEVELOPER shall execute a note for the
remainder of the fee which note shall contain the
following conditions:
1) The remaining two-thirds (2/3) shall be paid to
the CITY in annual installments.
2) The note shall be amortized over a 20-year
period.
3) The note shall bear interest on the unpaid
balance at a rate of 2 percent above the
CITY'S bond rate for the fiscal year
immediately preceding the date of the payment.
The City Treasurer shall be responsible for
annually determining the interest rate.
The
Director of Facilities Management shall be
responsible for annually billing the DEVELOPER.
The collected funds shall be retained in the
Parking District fund.
DEVELOPER'S interest in this agreement may not
26 expressly, impliedly or by action of law, without
be transferred assigned, or pledged, either
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JFW:br[Kaufman.Agr]
March 12, 1990
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the express written consent of the Mayor and Common
Council to such transfer, assignment or pledge.
(b)
DEVELOPER shall notify the City Administrator
of any proposed transfer of ownership of the
property at least 60 days prior to the effective
date of such transfer.
Failure to so notify the
City Administrator shall constitute a breach of a
material provision of this agreement.
Upon the
occurrence of such breach all sums then remaining
unpaid under this agreement shall be immediately
due and payable to CITY by DEVELOPER.
DEVELOPER shall require any proposed new owner
to first agree in writing that all terms and
conditions of this agreement shall remain in
effect, and be binding upon each such new owner(s).
Upon the transfer of the ownership of the property
without execution by the new owner of an agreement
to the terms and conditions herein set forth, all
sums then remaining unpaid shall be immediately
due and payable to CITY by DEVELOPER.
(a)
CITY hereby acknowledges and agrees that
DEVELOPER has granted an easement to CITY for land
equivalent to 19 parking spaces on the property
site. A copy of the easement is attached hereto as
Exhibit "A" and by this reference made a part
hereof.
DEVELOPER is to receive credit for the 19
spaces against the number parking spaces required
JFW:br[Kaufman.Agr]
March 12, 1990
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--
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for the use proposed for the property as set forth
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hereinabove.
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(iv)
(a)
The Mayor and Common Council shall use their
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best effort to insure that forty (40) parking
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spaces in Parking District Lot #1, in close
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proximity to the subject property, will be
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established and shall remain as one-hour spaces
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during the life of this agreement.
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(b)
If designated parking spaces are authorized in
conjunction with the construction of a public
parking structure in Parking District Lot #1,
DEVELOPER shall have a priority right to request
consideration for designated parking spaces. Such
parking rights shall be subject to terms and
conditions established at the time of the grant of
any such right.
18 2. EFFECTIVE DATE OF AGREEMENT
19 This Agreement shall become effective upon date of execution
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20 hereof.
22 3. POSSESSORY INTEREST
23 The CITY and the Lessee hereby agree and understand that this
24 Agreement may create a possessory interest subject to property
25 taxation and that if such possessory interest is created, the
26 DEVELOPER shall pay the property taxes, if any, levied on such
27 possessory interest. The DEVELOPER shall promptly provide to the
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JFW:br[Kaufman.Agr]
March 12, 1990
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1 CITY upon such payment a written ,certification, signed by an
2 authorized agent of the DEVELOPER, that all such taxes due, if
3 any, have been paid by the DEVELOPER.
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5 4. TERMS SUBJECT TO LEASE AGREEMENT
6 This Agreement is subject to the terms and conditions of any
7 provisions contained in any indenture related to bonds issued for
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the purchase or expansion of Parking District Lot #1.
The
10 premises, or to commit the premises to the uses specified in this
9 parties recognize that CITY'S right to occupy the subject
11 Agreement, may expire before this Agreement expires by its terms.
12 In such event, this Agreement shall terminate as of such date as
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13 CITY'S entitlement to use and control of the Lot expires.
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15 5. HOLD HARMLESS
DEVELOPER agrees to, and shall, hold CITY, its elective and
17 appointive boards, commissions, officers, agents and employees
18 harmless from any liability for damage or claims for damage or
19 personal injury, including death, as well as from claims for
20 property damage which may arise from DEVELOPER'S operations under
21 this Agreement, whether such operations be by DEVELOPER, its
22 officers, employees, tenants or invitees, or by anyone or more
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23 persons directly or indirectly employed by or acting as agent for
lessee.
DEVELOPER agrees to and shall defend CITY and its
25 elective and appointive boards, commissions, officers, agents and
26 employees from any suits or actions at law or in equity for
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JFW:br[Kaufman.Agr]
March 12, 1990
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1 damages caused, or alleged to have been caused, by reason of any
2 of the operations hereunder.
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4 6. ASSIGNMENT
5 DEVELOPER shall not assign any CITY owned parking spaces
6 which are the subject of this Agreement without the prior written
7 consent of the CITY.
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9 7. AMENDMENT
This Agreement may be amended or modified only by written
11 agreement signed by both parties. Failure on the part of either
12 party to enforce any provision of this Agreement shall not be
13 construed as a continuous waiver of the right to compel
14 enfcrcement of such provision or provisions, nor shall such
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16 obligations under this Agreement.
15 waiver be construed as a release of any surety from its
18 8. NOTICES
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20 in person or sent by certified mail, postage prepaid, addressed
All notices herein required shall be in writing and delivered
21 as follows:
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CITY
DEVELOPER
City of San Bernardino
300 North "D" street
San Bernardino, CA 92418
Attn: City Administrator
Kaufman Wald Investment
10401 Venice Blvd., #230
Los Angeles, CA 90034
Attn: Mark Kaufman
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III
III
III
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March 12, 1990
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1 9. VALIDITY
2
If any terms, condition, provision, or covenant of this
3 Agreement shall to any extent be judged invalid, unenforceable,
4 void, or voidable for any reason whatsoever by a court of
5 competent jurisdiction, each and all remaining terms, conditions,
6 promises and covenants of this Agreement shall not be affected
7 and shall be valid and enforceable to the fullest extent
8 permitted by law.
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10 10. ENTIRE AGREEMENT
11 There are no understandings or agreements except herein
12 expressly stated. Any modifications must be in writing.
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City of San Bernardino
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By:
16 W.R. Holcomb, Mayor
City of San Bernardino
17 Approved as to form
and legal content:
18 Kaufman Wald Investment
19
JAMES F. PENMAN,
City Attorney
f\
By: ~jp~""
U
Mark Kaufman
By:
7
~EauESTED 8'1' AND
WHEN RECOROED MAIL TO:
TYCL
(ITY HAL~
300 North "0" Street
San Bernardino. California 92418
SPACE ABOVE THIS LINE FOR RECORDER'S USE
EASEr.1ENT
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es an easement for ,
Do ......... Hereby Grant to the CITY OF SAN BERNARDINO. a MuniCipal CorporatIOn. ..................................................... i
parking lot purposes, in, over, under and across......... i
................................................................................................................................. ...................................... ..... ,
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(GranlUr . GrJnlur~1
FOR A VALUABLE CONSIDERATION. receipt of wluch IS hereby aclmowledged.
the real property In the City of San Bernardino. County of San Bernardtno. S,ate of Califorma. desmbed as iollows
The North 15 feet of the Southerly 51.00 feet of Lot 3, Block 2B of the City of I
San Bernardino, as per plat thereof recorded in Book 7 of ~1aps. Page I, in the I
office of the County Recorder of said County, excepting therefrom the Easterly
112.62 feet. '
SOUTHERN CALIFORNIA GAS COMPANY
Daled ...........................................................19.........
By:
a.... ....................-............_uu..__._n...n
Citv CI.rir;
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STATE OF CALlFORNIA_..____.__...___.______~
COUNTY OF______.___._.____._._..._._ I
55. I
On ----------..-.---_.._.______._before me. .
--.------------....__.._._... a '-IOlary Pubhc ;
in and ror said County and State. personally appeared .____ ~
.----. known [Q me to oe the I
--- PreSIdent. and .--------.-..---...----- I
known to me to be the .______..___._ou Secretary of
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nus IS to Certlfv th't the ,nt.rlSt In rNI orooerty
conveyed by the wltnln InStrument to tne Cltv of Sin
BernardIno, ulltornla. a munlCloal coroor'tlon. IS herlby
ac:ceOlecJ bv order ot the Cltv Council, ,nd the ~,nt"
consents to th~ r<<orOatlon thMeot by Its duly luthorlzed
otticer
Dlteo ................._n....................._........
CITy OF SAN ~c:FlNAROINO
the corporatIon that executed the wlttun and roregolng instrument.
and known to be the persons who executed the withIn Instrument
on behalf of the corporation the rem named. and acknowledged to
me that such corporation executed [he same. and acknowledged to
me that such corporation executed the wlttun Instrument pursuant
to ItS by.laws or a resolutlon of its board of directors.
:--;otary Public ID and for wd County and Slate
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My commission expire'
Location ~..p.~!:.~~.~~..~!..:E:..?~:.~.~~...~.~.~.~.~.~.~.
4th Street and 5th Street
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FOR NOTARY SEAL OR STAMP
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