HomeMy WebLinkAbout25-Development Services ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Valerie C. Ross,Director Subject: Resolution terminating the current
lease with San Bernardino County Society for
Dept: Development Services Crippled Children and Adults, Inc. and
authorizing the execution of a lease with Easter
Date: July 9, 2008 Seals Southern California, Inc. for property
located at 241 E. 91h Street.
File No. 15.06-057 MCC Date: July 21, 2008
Synopsis of Previous Council Action:
06/18/1963—Resolution No. 6809—Authorizing the execution of a(50)fifty-year lease with the San
Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals), from
06/20/1963 through 06/20/2013.
08/05/1963—Resolution No. 6869 authorizing the 1St Amendment of the original lease,was adopted.
05/23/1966—Resolution No. 8186 authorizing the 2 Amendment of the original lease,was adopted.
05/08/1967—Resolution No. 8662 authorizing the 3rd Amendment of original lease,was adopted.
04/19/1982—Resolution No. 82-164 authorizing the 4th Amendment of the original lease, was adopted.
07/09/2008—The Ways and Means Committee recommended that the Mayor and Common Council
authorize the execution of a lease with Easter Seals Southern California, Inc.
Recommended Motion:
Adopt Resolution.
Valerie C. Ross
Contact person: Ryan Sandoval Phone: 5226
Supporting data attached: Staff Report,Map, Letter,Reso,Agreement Ward: 1
FUNDING REQUIREMENTS: Amount: None
Source: (Acct. No.) N/A
(Acct. Description) N/A
Finance:
Council Notes: al30�" q 9/
Agenda Item No.
7
Page 1 of 3
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
SUBJECT:
Resolution terminating the current lease with San Bernardino County Society for Crippled
Children and Adults, Inc. and authorizing the execution of a lease with Easter Seals Southern
California, Inc. for property located at 241 E. 91h Street.
BACKGROUND:
On June 18, 1963, a lease was executed between the City of San Bernardino and the San
Bernardino County Society for Crippled Children and Adults, Inc. (Easter Seals) for a portion of
City owned parcels located on the south side of 9th Street, west of Waterman Avenue. The lease
was for land only (approx. 83,952 sq. ft.) with the lessee to construct the building. The original
lease term was for 50 years for $1 per year, and set to expire June 20, 2013 with the option to
renew and extend the lease for another(50) fifty-year term from the expiration date.
On August 5, 1963, the first amendment to the original lease was approved, by the request of the
City, requiring the Lessee to institute proceedings to obtain a Conditional Development Permit.
On July 7, 1964, the Planning Commission approved Condition Development Permit No. 287.
The original lease agreement states that the building or structure shall be of a value of not less
than $175,000 and shall be substantially completed within three years from the date of the lease.
On May 23, 1966, the second amendment to the original lease was approved, extending the
completion time for the construction of the building to two (2) years, making the completion date
June 18, 1968. On May 8, 1967, the third amendment to the original lease was approved, to
provide that the building or structure will be of a value of not less than $70,000 and shall
subsequently be completed by June 18, 1968.
On April 19, 1982, Resolution No. 82-164 authorizing the 4th Amendment to the original lease
was adopted. The purpose for the City wanting to reduce the leased area was to use the portion of
property not being used by Easter Seals in a Secombe Lake project. However, the fourth
amendment was not executed,thus it did not take effect.
Recently, the Mayor's Office received a letter from Mark Whitley of Easter Seals requesting that
the lease term be extended for an additional (50) fifty-years from the expiration date of the
original lease. Mr. Whitley has informed the Real Property Section that the early request for
extension is primarily because they are preparing to make a substantial investment of a minimum
of one-million dollars in the current building to provide much needed child development
services.
A new lease, rather then an amendment to the existing lease, needs to be executed to bring the
lease agreement to the current standards and requirements, and as a result the current lease will
need to be terminated. Easter Seals has concurred with the termination of the current lease,
subject to the execution of a new lease.
Easter Seals is requesting the same term of fifty (50) years, commencing on July 7, 2008 and
terminating on July 6, 2058. The payment of$1 per year will remain the same. Easter Seals has
Page 2 of 3
Staff Report Continued
also requested an expansion of approximately 31,187 sq. ft. to the current leased area. Although
the leased area was never reduced, due to the 4th amendment not being approved or executed,
this area requested will be included in the legal description of the lease.
The improvements to the site will be constructed in 2 phases. Phase 1 will consist of the existing
facility and will include the removal of an existing indoor swimming pool; the addition of three
primary classrooms; handicap accessible restroom facilities and appurtenant plumbing; the
addition of a new kitchen; new playground equipment and safety surfacing; installation of new
HVAC systems; installation of age appropriate fixtures and amenities; and earthquake
retrofitting of the building. Phase 1 is estimated to be completed by mid 2009. Phase 2 will
include the unimproved area to the south of the existing facilities and will be improved by adding
an expanded parking area, playground and two (2) modular buildings. Portions of Phase 2 will
be started during Phase 1, but will ultimately be completed by January, 2015. Easter Seals will
carry out any grading and site preparation needed on the site.
Currently, a portion of the leased area that the existing building is located on is zoned as CG-I
(Commercial General), while the current parking area and area proposed for improvements under
Phase 2 are zoned as PF (Public Facility). Easter Seals will need to apply and pay for a General
Plan Amendment to change this portion from PF to CG-1 to allow the type of improvements
proposed. Per the Planning Section, either a Conditional Use Permit (CUP) or Development
Permit(DP) will be required by Easter Seals prior to the renovation of the existing building
and/or construction of the new improvements. Easter Seals agrees not to request additional
funding, or waiver of any fees associated with development and shall bear and pay the cost of all
improvements, building fees, permit fees, including but not limited to Development Permit or
Conditional Use Permit, inspections and development impact fees.
Funding for all renovations are coming from multiple sources which would include San
Bernardino County Supervisor Josie Gonzales' office, the Headstart Program and also includes
funding from fundraisers with Baker's Burgers and Vons Grocery Stores.
On July 9, 2008, the Ways &Means Committee recommended that the Mayor and Common
Council authorize the execution of a lease with Easter Seals Southern California, Inc. for
property located at 241 E. 9th Street.
The attached resolution terminates the existing lease with San Bernardino County Society for
Crippled Children and Adults, Inc. and authorizes the execution of a Lease with Easter Seals
Southern California, Inc.
FINANCIAL IMPACT:
$50 lease revenue over entire term.
RECOMMENDATION:
Adopted Resolution.
ATTACHMENTS:
- Map
- Letter
- Information Packet
Page 3 of 3
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CITY OF SAN BERNARDINO LEASE OF CITY PROPERTY(LAND ONLY)WITH EASTER SEALS
t DEVELOPMENT SERVICES DEPARTMENT SOUTHERN CALIFORNIA, INC., -241 E. 9TH STREET
REAL PROPERTY SECTION APN'S: 0140-241-45& 54
Prepared by: Ryan Sandoval Date: 04/21/2008 Legend:r——
`� =CITY OWNED PROPERTY
FILE NO.: 15.06-057
=LEASE AREA
y
Creating solutions, changing lives. Easter Seals
Services for children and adults with Sauttarn Catif0mis
disabilities in Southern California 1801 E.Edinger Avenue,suite 190
Santa Ana,California
April 23, 2008 92705-4770
714.834.1111 phone
Members of the San Bernardino City Council 714.834.1128 fax
300 N. "D" Street, Sixth Floor www.south6ncal.easterwals.com
San Bernardino, CA 92401
RE: Easter Seals Newest Child Development Center in the City of San Bernardino
New Land Lease - 241 E. 9"' Street., San Bernardino
Dear City Council members,
Quality child care and preschool programs that are affordable, safe and conveniently located
are often difficult to come by for low-income, working families. These challenges are
particularly acute for families with young children with disabilities or special needs.
Easter Seals Southern California, in collaboration with the City of San Bernardino, the County
Board of Supervisors, San Bernardino Preschool Services Department (PSD), the California
State Department of Education and First Five San Bernardino hope to address this child care
shortage for families in the heart of San Bernardino.
Easter Seals plans to renovate an existing 5,000 square foot building located at 241 E. 9"'
Street into a new, state of the art child development center (see attached preliminary space
plan). This facility will provide continuous, intensive, integrated, comprehensive and
inclusive child care services for toddlers, pregnant women and their families. Our center will
offer full-day, year round child care; safe and child friendly environments; and highly
qualified teachers with low adult to child ratios.
Easter Seals currently leases the land at 241 E. 9th Street from the City of San Bernardino.
Our lease expires in June, 2013. Per the recommendation of the Development Services
Department staff and the City Attorney, we would like to terminate the existing lease if the
Council will agree to replace it with an updated fifty (50) year lease at the same annual rate.
In addition, we would like to include all of the land in parcel 0140-241-54-0000 (currently
divided under the terms of the existing lease - see attached assessor's map). Presently, this
land sits vacant and is an attractive spot for the homeless, illegal dumping, drug dealing and
other criminal activity. We hope to revitalize these dirt lots by adding landscaping,
playground areas, one or two classroom modulars and increased parking capacity (see
attached conceptual site plans).
I hope you will support this request. Easter Seals has been a valuable community partner
for over fifty years and we intend to continue that tradition in the decades to come.
Please feel free to call me should you have any questions about our center or this request. I
look forward to working with you and your staff as we move to open our newest child
development center in San Bernardino.
Sincerely,
Mark Whitley
President Please Remember Easter Seals in Your Will or Trust
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Introducing Our Newest Child Development Center
Coming Soon To
San Bernardino, California
The Need:
Quality child care and preschool programs that are affordable, safe and
conveniently located near work centers are often difficult to come by for r
many working families. These challenges are particularly acute for families ;
with infants and/or young children with special needs.
Easter Seals has documented a need for intensive,comprehensive early
childhood development and family support based on indicators of
economic hardship, family stress,lack of access to healthcare,community
and social services, high teenage pregnancy rates and minimal availability of
services for infants and toddlers with disabilities.
Our Solution:
Easter Seals Southern California,in collaboration with the County of San Bernardino Preschool Services
Department (PSD), the California State Department of Education,
First Five San Bernardino,and the City of San Bernardino,hope to
address this child care shortage for families in the County of San
Bernardino.
Easter Seals plans to renovate a 5,000 square foot building into a
new, state of the art child development center. This facility will
provide continuous,intensive,integrated,comprehensive and
inclusive child care services for infants, toddlers,pregnant women
t and their families. Infants and children under the age of three will
comprise 25% of the program participants and children age 3 to 5 will represent the balance. The Center will
provide both private pay and subsidized care based on program participant need and income levels.
Summary of Features
The Easter Seals Child Development Center in San Bernardino will offer:
• Full-day,year round child care;
• Hands-on learning that promotes a child's natural development;
• Safe,caring,child friendly environments;
• Stimulating educational activities and developmentally appropriate toys and learning;
• Highly qualified teachers with low adult to child ratios;
• Top quality facilities and state-of-the-art tools that meet or exceed industry standards;
• Individual learning plans;
• Active family partnerships;
• Parent workshops, training programs and individual consultations.
Licensed and Accredited Program
The Easter Seals Child Development Center in San Bernardino will
be licensed to provide services through the California Department
of Social Services,Community Care Licensing Division. The
center will provide child care services through low-income
vouchers and will also be open to private pay participation. In
addition to meeting all state, federal and local regulations, the .
Easter Seals Child Development Center in San Bernardino will
adhere to the stringent accreditation guidelines set by the National
Association for the Education of Young Children (NAEYC), the
premier accreditation organization for child care centers. v,
Early Intervention, Education and Child Development
American Academy of Pediatrics studies on early child development have proven that the first three years of a
child's life play a critical role in their long term development. Too often,children do not receive the
stimulation and attention they need during this period. For the most vulnerable children,inadequate or
harmful experiences early in life can result in developmental delays and problems that persist throughout their
lives. The Ontario Child Development Center will provide enriching,nurturing environments that start
young children off on the right path towards optimal development.
The underlying principle of Easter Seals'approach to early education and development is that the foundation
of a positive attitude toward learning and later developing skills such as reading and math is built in the first
few years of a child's life. Easter Seals will support optional child development by creating environments that
are both cognitively stimulating and emotionally nurturing. This will enable children to develop the skills and
confidence they need to succeed in their present environment as well as in later academic and social
situations.
Inclusive Child Care
Easter Seals' experience shows that children with disabilities significantly benefit from receiving appropriate
care along side their non-disabled peers.Typically developing children serve as role models from whom
children with disabilities learn age-appropriate communication and social
behaviors.The benefit to children without disabilities is that they learn to
understand and appreciate differences and the special qualities of others.
What's more,the experience replicates what children will find later in life.
The Easter Seals Child Development Center in San Bernardino will be an
integrated program,allocating at least 10 percent of the enrollment
§ opportunities for children with disabilities.
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is
Family Support and Involvement
The philosophy of Easter Seals programs is that the family is the primary
system guiding a child's development. Accordingly,efforts to promote
optimal child development will involve parents to the fullest extent
possible. Involved families become empowered in choice and decision
making opportunities. This leads to positive family outcomes. The Ontario
Child Development Center will be open to families and parents at all times.
Staff will encourage parents to observe their child and to participate in
parent-staff conferences.
Focus on Nutrition
Good nutrition prenatally and early in life is an essential component
to healthy child development. Infants and toddlers who do not
receive appropriate nutrition can develop problems such as low
energy, fatigue,hyperactivity,and anemia. Promoting healthy eating
habits at the Center and at home will enhance children's optimal
development. Easter Seals will employee food service workers and
contract with a nutritionist to help meet the nutritional needs of
program participants and their families.
Community Partnerships
To have the greatest impact possible on the children and families we serve,Easter Seals recognizes that we
must actively involve other local agencies. A strength of San Bernardino is the number of community
partners offering services to children and their families in the area. Staff at the Easter Seals Child
Development Center in San Bernardino will mobilize an integrated network of community resources across a
wide range of service areas and make them available to all of our program participants.
Ongoing Staff Training
Success in promoting the optimum development of infants,toddlers,pregnant women and their families
depends on the quality of services provided by staff Children and families benefit from well-trained, satisfied
staff. Easter Seals will support its entire staff through continuing education and professional development
opportunities. In addition,Easter Seals will promote a nurturing and empowering relationship between all
staff,children and their families.
Why Easter Seals:
Easter Seals is the right agency to develop quality,integrated child care programs. Specifically,Easter Seals:
• Has extensive experience in program development and
implementation;
• Provides its high-quality services at costs that are affordable to families
in need;
• Has a proven track record of collaboration with other organizations,
constituencies in the community,and city, state and federal
governments;
• Successfully developed a similar child development centers in Upland
and Ontario, California;
• Is the largest provider of child care services for children with special
needs in the country;
• Is a stable agency with management systems in place to monitor
program start-up;
• Has strong board involvement and competent leadership. 0
Our Location: The Heart of San Bernardino:
The Easter Seals Child Development Center in San Bernardino is ideally located to serve the local community
at:
241 E. 91h Street,
San Bernardino, CA 92401
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T�F T Our Modernization Plan:
I -T, I Easter Seals will make significant improvements to the San
° F-11 Bernardino property,including:
o Removing an existing indoor swimming pool;
o Adding three primary classroom areas (two double
classrooms and one single classroom);
o Adding extensive new plumbing and accessible
restroom facilities;
- - o Installing a new kitchen;
o Renovating the office and administrative areas;
o Installing new playground equipment and safety
surfacing,
o Earthquake retrofitting of the building(as needed);
o Installing new HVAC systems;
E]ILL o Repairing and resurfacing the parking lot;and,
o Installing age appropriate fixtures and amenities.
Current Floorplan
(E)OFFIC
EXISTING�, 17 (E)OFFICE
ELEC
PANELS (E)OFFICE SF 2
(E)80 SF 90 SF
(N)KITCHEN 10 180 SF
® 208 SF (E) E
291 SF
3
(E)RECEP. 78 SF
52
198 SF (E)CONF.RM.
CORRIDOR
(N)CHILD TOILET 198 SF
i 53
(N)SIDELIGHT 118 SF
(N)W NDiA^1
(E)ADULT TOILET
_ 33 N)WINOav
(N)DOUBLE 37 S
CLASSROOM
1,122 SF
(32 STUDENTS)
I
(N)SINGLE
® CLASSROOM
(N)SIDELIGHT 832 SF
(18 STUDENTS)
CHILD TOIL.
-- F 55
1110OR 52SF(N (N)WINDOW(E)VIEWING RM )STORAG
32
84 SF
34 SF-
(N (�UnRM
CHILD TOIL.
®(N 53 SF
(N)DOUBLE (E)MEN (E)CLASSROOM 1,182 SF ® 30
(33 STUDENTS) 194 SF 154 SF (E)CONF.RM
i 45 New Floorplan 234 SF
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PHASE ONE: (Existing Building Renovation)
Our Timeline:
The current timeline for the renovation of the existing building for the Easter Seals Child Development
Center in San Bernardino is as follows:
Date Action
August 2008 Complete Architectural Drawings
September 2008 City Approvals and Building Permit
November 2008 Begin Renovation Work
February 2009 Renovation Continues
Begin Playground Work
March 2009 Renovation Continues
Begin Landscaping Work
A ril 2009 Complete Renovation
June 2009 60 Day Licensing Period
July 2009 Grand Opening
Investment Required:
Easter Seals needs approximately$1.25 million dollars to carry out the renovation of the existing building and
start-up of the center.
Item Sub-Total Total
Renovation Costs
Interior Renovation $750,000
(plumbing, electrical,kitchen,
lighting,carpentry,HVAC, etc.)
Exterior Renovation $100,000
(roof,parking lot,lighting, etc.)
Playgrounds $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,000,000
Equipment& Furnishings
Furniture&Equipment $100,000
Kitchen Supplies $15,000
Classroom Supplies $60,000
Equipment&Furnishings Subtotal $175,000
Start-Up
Staffing $50,000
Other Operating Costs $25,000
Start-Up Subtotal $ 75,000
GRAND TOTAL $1,250,000
Proposed PHASE TWO: (Modulars)
Easter Seals hopes to implement a second phase to this project after the renovation of the existing building is
complete. In Phase Two,we plan to revitalize dirt lots to the rear of the property by adding landscaping,
playground areas, two classroom mo&dars and increased parking capacity. Presently,this land sits vacant
and is an attractive spot for the homeless,illegal dumping, drug dealing and other criminal activity. These
additional modulars will nearly double the capacity of our center.
Our Timeline:
Phase Two will be implemented after Phase 1. Start-up of Phase Two will depend on financing, fundraising
and the availability of program slots from Head Start and the Department of Education. Phase Two could
start as early as 2010 but no later than 2015.
Investment Required:
Easter Seals needs approximately$1.5 million dollars to carry out the proposed second phase of this project.
Item Sub-Total Total
Modular Costs
Site Preparation&Parking Lot $200,000
Modulars (x2) $800,000
Playgrounds $100,000
Parking Lot $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,250,000
Equipment& Furnishings
Furniture&Equipment $125,000
Classroom Supplies $75,000
Equipment&Furnishings Subtotal $200,000
Start-Up
Staffing $50,000
Start-Up Subtotal $ 50,000
GRAND TOTAL $1,500,000
The Time To Act Is Now:
Now is the time to create a place with exceptional services that will truly impact the lives
of at-risk children, pregnant women and their families. You can make a difference.
Please join Easter Seals and help us make a positive and lifelong change in the lives of
young families in San Bernardino County.
Contact Us:
Easter Seals Southern California
1801 E. Edinger Avenue,Suite 190
Santa Ana,CA 92705
- - , (714) 834-1111
(714) 834-1128 (fax)
www.SoutherCal.EasterSeals.org
COPY
Y
1 RESOLUTION NO.
2
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
3 BERNARDINO TERMINATING THE LEASE WITH THE SAN BERNARDINO COUNTY
SOCIETY FOR CRIPPLED CHILDREN AND ADULTS, INC. (NOW EASTER SEALS)
4 AND AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE
5 CITY OF SAN BERNARDINO AND EASTER SEALS SOUTHERN CALIFORNIA,INC.
FOR CITY OWNED PROPERTY LOCATED ON THE SOUTH SIDE OF NINTH STREET
6 AND WEST OF WATERMAN AVENUE,IN SAN BERNARDINO.
7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
8 SAN BERNARDINO AS FOLLOWS:
9 SECTION 1. The current Lease Agreement dated June 18, 1963, between the City of San
10 Bernardino and San Bernardino County Society for Crippled Children and Adults, Inc. and all
11 amendments thereto, relating to City owned property located south of Ninth Street and west of
12
Waterman Avenue, is hereby terminated.
13
14 SECTION 2. The City Manager of the City of San Bernardino is hereby authorized and
15 directed to execute on behalf of the City, a Lease Agreement with Easter Seals Southern California,
16 Inc., relating to City owned property located south of Ninth Street and west of Waterman Avenue,
17 San Bernardino, CA. A copy of the Lease Agreement is attached as Exhibit"I", and incorporated
18
herein by reference.
19
20 SECTION 3. Authorization to execute the Lease Agreement is rescinded if the parties fail
21 to execute it within sixty(60) days of the passage of this Resolution.
22
23
24
25
26
27
28 cl�5
07/09/08 1 7--1-/ . o
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
1 TERMINATING THE LEASE WITH THE SAN BERNARDINO COUNTY SOCIETY FOR CRIPPLED
CHILDREN AND ADULTS,INC. (NOW EASTER SEALS) AND AUTHORIZING THE EXECUTION OF
2 A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EASTER SEALS
SOUTHERN CALIFORNIA,INC.FOR CITY OWNED PROPERTY LOCATED ON THE SOUTH SIDE OF
3 NINTH STREET AND WEST OF WATERMAN AVENUE,IN SAN BERNARDINO.
4
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
5
6 Common Council of the City of San Bernardino at a meeting thereof
7 held on the day of , 20 ,by the following vote, to wit:
8
Council Members: AYES NAYS ABSTAIN ABSENT
9
10 ESTRADA
11 BAXTER
12 BRINKER
13 DERRY
14
KELLEY
15
16 JOHNSON
17 MCCAMMACK
18
19 City Clerk
20
The foregoing resolution is hereby approved this day of , 20
21
22
23
PATRICK J. MORRIS, Mayor
24 City of San Bernardino
25 Approved as to Form:
26
27
By:
28 MES F. hNMAN, City Attorney
07/09/08 2
LEASE
THIS LEASE AGREEMENT, made and entered into this day of
, 2008, by and between the CITY OF SAN BERNARDINO, a
municipal corporation, hereinafter referred to as "Lessor", and EASTER SEALS SOUTHERN
CALIFORNIA, INC., a corporation, hereinafter referred to as "Lessee".
RECITALS
This lease is made and entered into with respect to the following facts:
(a) Lessor is the owner of the property herein described.
(b) Lessor is willing to lease the property to Lessee upon the terms and
conditions hereinafter set forth.
(c) Lessee desires the use of said land, -
NOW THEREFORE, the parties hereto agree as follows:
1. Property Leased.
Lessor hereby leases to Lessee, and the Lessee hereby leases from Lessor, a parcel of
land located on the south side of Ninth Street between Sierra Way and Waterman Avenue in the
City of San Bernardino, County of San Bernardino, State of California, generally referenced to
as Assessor's Parcel Nos. 0140-241-45 and 0140-241-54, and more particularly described as
follows:
All that portion of Lot 4, Block 3, Rancho San Bernardino, as per plat thereof,
recorded in Book 7 of Maps, Page 2, records of the County Recorder of San
Bernardino County, State of California, described as follows:
Beginning at a point on the North line of said Lot 4, which is 455 feet West of the
Northeast corner of Lot 5 in said Block 3, said point being on the Westerly line of
property conveyed by the City of San Bernardino, in a Corporation Quitclaim
Deed recorded November 17, 1983, as Instrument No. 1983-0272008, Official
Records of said County; thence along said line described in said Quit Claim Deed
and following its various courses and distances as follows: South a distance of 200
feet; thence West, a distance of 114.58 feet; thence South 14° 23' 20' East to a
point that is 485 feet South of and measured at right angles to said North line of
Lot 4; thence Westerly and leaving said line described in said Quit Claim Deed
EXHIBIT "1"
along a line that is parallel with said North line,to the East line of the West 2-acres
of said Lot 4; thence North along the said East line, a distance of 485 feet more or
less to said North line of Lot 4; thence Easterly along said North line, to the Point
of Beginning.
Reserving to the Grantor a 30.00 foot easement for the operation and maintenance
of a 30 inch pipe line, said easement to be 15.00 feet on each side of the following
described center line:
Commencing at a point which is 117.94 feet west of the Northeast corner of the
above described property; thence South 01' 07' East, a distance of 485 feet to the
South line of the above described property, said point being the true point of
beginning; thence Course No. 1,North 01° 07' West to a point which is 19.78 feet
South of the North line of said Lot 4, said point being Point "A"; thence Course
No. 2 from said Point "A", North 45° East to the North line of said Lot 4; thence
Course No. 3 from said Point"A", North 45° West to the North line of said Lot 4.
The side lines of said easement shall be extended or shortened as to terminate at
their point of intersection.
Said property is shown on the attached plat marked as Exhibit"A".
2. Use.
The leased premises shall be used for a child day care center/child development center.
Lessee agrees to use the premises for such purposes, and not to use or permit the use of the
property for any other purpose unless the Lessor has previously approved such use in writing.
Lessee further understands and agrees that there shall be no restriction of admission of children
to the center on the basis of race, color, creed, religion, disability, ancestry, sex, or national
origin, and Lessee further understands and agrees that there shall be no religious teaching,
indoctrination, or reference to religion in any way, manner, or form whatsoever inasmuch as
Lessor is a public entity and subject to constitutional prohibitions concerning religious
activities. Lessee agrees to conduct its child day care/child development center in such a
manner as to not violate any such constitutional restrictions. Lessee shall not commit, or allow
to be committed, any waste or nuisance in the leased premises,nor shall it use or allow the
07/17/08 2
premises to be used for an unlawful purpose. Lessee shall at all times possess all necessary
licenses and approvals for the operation of a day care center and shall immediately notify
Lessor, through its City Clerk, at any time that such licenses or approvals have been revoked or
modified.
3. Term.
The term of this lease shall be for a period of fifty (50) years commencing July 7, 2008,
and terminating on June 6, 2058, unless terminated at an earlier date as provided in paragraph
8.
4. Lease Payments.
Lessee agrees to pay and Lessor agrees to accept as rental for said premises, for the
term hereof, a yearly rental of ONE DOLLAR($1.00)per year for each and every year of the
term of the lease, which rental shall be paid annually in advance commencing on the 7th day of
July, 2008, and thereafter on or before the first day of July of each and every year of the term
herein. Payments shall be directed to:
City of San Bernardino
Real Property Section
300 North "D" Street
San Bernardino, CA 92418
5. Utilities.
Lessee shall pay for all electricity, gas,water, telephone service, and all other services
and utilities, including service installation fees and charges for such utilities during the term of
this Lease. If Lessee desires additional utilities and/or utility services to the premises, Lessee
must first obtain written consent from Lessor. All additional utility connections for the facility
shall be placed underground.
07/17/08 3
6. Taxes/Possessory Interest.
Lessee covenants during the term of this Lease to pay, when due, all taxes and
assessments that may be assessed or imposed upon the Lessee's possessory interest in and to
the premises and upon personal property located on the premises. During Lessee's possession
and use of the leased premises, should any taxes thereon be assessed against Lessor, Lessee
agrees to indemnify Lessor thereon. Lessee agrees to, and shall hold harmless, Lessor from any
and all liability for any such taxes due by virtue of Lessee's improvements, equipment,
furniture, fixtures, or other personal property.
7. Insurance.
Lessee agrees to procure and maintain in force during the term of this Lease and any
extension, at its own expense, a policy or policies of insurance against loss or damage to the
leased premises, appurtenances and permanent equipment, resulting from fire, in a minimum
amount of$100,000.00; and from lightning, vandalism, malicious mischief, and such other
perils ordinarily defined as "extended coverage" and other perils in a minimum amount of
$100,000.00. The fire and extended coverage insurance policy shall name Lessor as an
additional insured, and shall contain a provision that loss shall be payable to Lessee and Lessor
as their interests may appear. Lessee agrees to procure and maintain in force during the term of
this lease and any extension thereof, at its expense, public liability insurance in companies and
through brokers approved by Lessor, adequate to protect against liability for damage claims
arising in or around the Leased premises in a minimum amount of at least three million dollars
($3,000,000.00) for each person injured, six million dollars ($6,000,000.00) in the aggregate,
one hundred thousand ($100,000.00) for property damage. Lessee shall provide to Lessor a
certificate of insurance and an additional insured endorsement that provides:
07/17/08 4
(a) The City of San Bernardino named as an additional insured.
(b) The insurance company name, policy number, period of coverage, and the
amount of insurance.
(c) That the Real Property Section of the Development Services Department of the
City of San Bernardino must be given notice in writing at least thirty(3) days
prior to cancellation, material change, or refusal to renew the policy.
(d) That Lessee's insurance will be primary to any coverage the City of San
Bernardino may have in effect.
Lessee agrees that, if such insurance policies are not kept in force during the term of the
lease and any extension thereof, Lessor may have the option to immediately declare this Lease
in default, and to terminate said Lease.
8. Termination.
This Lease may be terminated by mutual consent of the Lessor and Lessee within a
thirty(30) day written notification by either party. Upon termination of this Lease, Lessee shall
surrender the property occupied by this Lease in as good condition as it was at the time of
Lessee's entry thereof subject to the conditions herein set forth.
9. Maintenance and Operation.
The Lessee is familiar with the leased premises and has knowledge of the present
conditions that exist thereon. Lessee shall, at its own expense, maintain the leased premises
and all improvements thereon in good order, condition, and repair. Lessee shall provide or
cause to be provided all security services, maintenance services, and janitorial services, which
are required for the proper care and use of the premises.
07/17/08 5
(a) Licenses. Lessee shall post in a prominent place and manner in the
demised premises all business licenses, certificates, a copy of this Lease, and all permits that
are required to do Lessee's business in the City of San Bernardino.
(b) Vendors. Lessee shall not permit vendors to display wares,
materials, or advertisements inside or outside the demised premises unless prior written
permission is secured from Lessor and such written permission is posted in a prominent place
and manner in the premises.
10. Improvements.
Lessee shall not make or suffer to be made any alterations to the demised premises or
any part thereof, without the prior written consent of Lessor. Any and all alterations and/or
improvements made to the demised premises pursuant to this section shall, upon termination of
this Lease,remain as a part of the premises and at no cost or obligation to the Lessor.
11. Construction Costs and Timeline of Work.
(a) All construction work shall be done in conformity with applicable building laws,
ordinances, and regulations. Lessee agrees not to request additional funding,or
waiver of any fees associated with development and shall bear and pay the cost
of all improvements, building fees, permit fees, including but not limited to
Development Permit or Conditional Use Permit, inspections and development
impact fees.
(b) Lessee agrees to construct, improve and/or renovate the leased property in two
(2)phases, which shall include,but not be limited to, the renovation of the
existing structure by December 31, 2009, and the construction and/or
improvement of additional structures and playgrounds on the unimproved area
g p
07/17/08 6
fE[j$
• f
i
of the leased property by December 31, 2015, and as more fully described in
attached Exhibit`B".
(c) Lessee agrees that if the construction and/or improvements of Phase 2 are not
completed by the date set forth above, Lessee consents to amend the Lease to
exclude all that portion of land lying south of the north 200 feet of the leased
area from the lease, which is the area proposed for Phase 2 improvements.
(d) Lessee agrees rees that it will apply for and pay all a pp licable fees for a General Plan
Amendment for the parcel of land included in Phase 2 of the development
(APN: 0140-24-54), currently zoned as PF (Public Facility) to CG-1
(Commercial General), before any construction and/or improvements take place.
(e) Lessee agrees that it will keep the leased premises free from any liens and that it
will fully pay and discharge all labor and material bills arising from
construction, repair or alteration work. The Lessor shall at all times have the
right to enter upon the leased premises and to post and maintain notices thereon
of non-responsibility for the cost of any construction, repair or alteration by
Lessee of any structures or improvements at any time upon said premises.
12. Alterations,Additions, or Changes Required by Law.
If, during the term of this lease, any law, regulation, or rule requires that an alteration,
addition, or other change be made to the demised premises,the parties agree as follows:
(a) If the alterations, additions, or changes are required as a result of Lessee's use of
the premises, Lessee will make them and bear all expense.
(b) If the alterations, additions, or changes are required as a result of the condition
or nature of the premises at the time of execution of this Lease, and are not
07/17/08 7
caused by use of the premises by Lessee, Lessor will make them and bear all
expenses.
13. Default.
In the event Lessee is in default in the payment of rentals or other charges hereunder or
is otherwise in breach of its covenants or obligations hereunder, and such default exists for a
period of thirty days after notice from Lessor to Lessee of such default, Lessor shall have the
right and privilege of terminating this Lease and declaring the same at an end, and of entering
upon and taking possession of said premises, and shall have the remedies now or hereafter
provided by law for recovery of rent, repossession of the premises and damages occasioned by
such default. If such default should occur then Lessor shall have the right to take possession of
and appropriate to itself without payment therefor, any property of Lessee or anyone claiming
under it,then remaining on said premises.
14. Inspections.
Lessor, it agents, officers, or employees may enter upon the demised premises at such
reasonable times during Lessor's normal business hours as it deems necessary for the purpose
of inspection of the premises to determine whether the terms and conditions of this Lease are
being performed and kept by Lessee.
15. Effect of Lessor's Waiver.
Lessor's waiver of a breach of any term, covenant, or condition of this Lease is not a
waiver of a breach of any other term, covenant, or condition, nor of any subsequent breach of
the term, covenant, or condition previously waived.
16. Non-Discrimination.
Lessee hereby covenants by and for itself, its successors, executors, administrators, and
07/17/08 8
assigns, all persons under or through it, and this Lease is made and accepted upon and subject
to the following conditions:
That there shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, disability, sex, national origin, ancestry, or
any other category protected by State or Federal law, in the leasing, sub-leasing,transferring,
use, occupancy, tenure, or enjoyment of the premises here leased nor shall the Lessee itself, or
any person claiming under or through it, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or
occupancy, of tenants, lessees, subleases, subtenants, or vendees on the premises herein leased.
17. Assignments.
Lessee shall not assign this lease or sublet the said premises or any part thereof without
obtaining the prior written consent of the Lessor.
18. Validity.
If any one or more of the terms, provisions,promises, covenants, or conditions, of this
Lease shall,to any extent, be adjudged invalid, unenforceable, void, or voidable for any reason
whatsoever by a court of competent jurisdiction, each and all the remaining terms, provisions,
promises, covenants, and conditions of this Lease shall not be affected thereby and shall be
enforceable to the fullest extent permitted by law.
19. Lease Applicable to Successors, Etc.
This Lease and the terms, covenants, and conditions hereof apply to and are binding on
the successors, executors, administrators, and assigns of the parties hereto.
20. Lease Breached by Lessee's Receivership,Assignment for the Benefit of Creditors,
Insolvency, or Bankruptcy.
07/17/08 9
The appointment of a receiver to take possession of Lessee's assets, Lessee's general
assignment for the benefit of creditors, or Lessee's insolvency or taking or suffering action
under the Bankruptcy Act is a breach of this Lease and shall terminate same.
21. Eminent Domain.
If the whole of the leased premises, or so much thereof as to render the remainder
unusable for the purpose 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 so 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 purpose, 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 award
made in eminent domain proceedings for the taking or damaging of the leased premises in
whole or in part shall be paid to the Lessor(together with any other money which shall be or
may be made available for such purpose).
22. Indemnification and Hold Harmless.
Lessee shall indemnify and hold harmless Lessor, its elective and appointive boards,
commissions, officers, agents, and employees from any liability for damage or claims for
damage for personal injury, including death, as well as from claims for property arising from or
related to Lessee's operations under this Lease, whether such operations be by Lessee or by
any one or more persons directly or indirectly employed by or acting as agent for Lessee.
Lessee agrees to and shall defend Lessor and its elective and appointive boards, commissions,
officers, agents and employees from any suits or actions at law or in equity for damages caused,
07/17/08 10
i;
or alleged to have been caused, by reason of any of Lessee's operations under this lease.
23. Amendment.
This Lease may be amended or modified only by written agreement signed by both
parties hereto. Failure on the part of either party to enforce any provision of this Lease shall
not be construed as a waiver of the right to compel enforcement of such provision or
provisions, nor act to release any party from its obligations under this Lease.
24. Notices.
All notices given in connection with this Lease shall be in writing and delivered in
person or sent by certified mail, postage prepaid, addressed as follows:
LESSOR LESSEE
City of San Bernardino Easter Seals Southern California, Inc.
Development Services Department ATTN: Coordinator of Administration
Real Property Section 1801 E. Edinger Avenue, Suite 190
300 North"D" Street Santa Ana, CA 92708
San Bernardino, CA 92418
25. Time of Essence.
Time is of the essence herein.
26. Compliance with Laws.
Lessee shall not violate, nor allow the violation of, any City, State or Federal law, in
conducting its operations under this Lease.
27. Option to Renew.
If Lessee has fully performed all of the terms, conditions, and covenants of this Lease
for the term hereof, then upon mutual consent by both the Lessor and Lessee,the Lessee shall
have the right to extend the term of this Lease for an additional term of fifty(50)years
("Renewal Term"). The Renewal Term shall be on the terms and conditions set forth herein, or
07/17/08 11
I
as may be amended. Said renewal shall be at a total rent to be negotiated by the Lessor and
Lessee. To exercise the option to renew, Lessee must give Lessor written notice of Lessee's
intention to do so at least one hundred-twenty (120) days prior to the expiration of this Lease.
28. Covenants.
There are no covenants or warranties other than those expressed in this Lease.
29. Entire Agreement.
This agreement constitutes the entire Agreement between the parties and may be
modified only by further written agreement between parties.
30. Attorneys' Fees.
The prevailing party in any legal action to enforce or interpret any provision of this
Lease will be entitled to recover from the losing party all attorneys' fees, court costs, and
necessary disbursements in connection with that action. The costs, salary, and expenses of the
City Attorney, and members of his office, in connection with that action shall be considered as
attorneys' fees for the purpose of this Lease.
07/17/08 12
IN WITNESS WHEREOF, the parties have executed this Lease on the day and year set
forth at the beginning of this Lease.
CITY OF SAN BERNARDINO
By: EXHISET COPY
FRED WILSON, City Manager
ATTEST:
13y: EXHIBIT COP '
RACHEL CLARK, City Clerk
EASTER SEALS SOUTHERN
CALIFORNIA, INC.
By: EXHIBIT COPY
MARK S. WHITLEY, President
Approved as to form:
By: EXHIBIT COPY
JAMES F. PENMAN, City Attorney
07/17/08 13
EXHIBIT 'A "
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CITY OF SAN BERNARDINO LEASE OF CITY PROPERTY(LAND ONLY)WITH EASTER SEALS
DEVELOPMENT SERVICES DEPARTMENT SOUTHERN CALIFORNIA, INC., -241 E. 9TH STREET
W REAL PROPERTY SECTION APN'S: 0140-241-45& 54
Prepared by: Ryan Sandoval Date: 04/21/2008 Legend: ——
� =CITY OWNED PROPERTY
FILE NO.: 15.06-057
=LEASE AREA
EXHIBIT "B"
PHASE ONE: (Existing Building Renovation)
Our Timeline:
The current timeline for the renovation of the existing building for the Easter Seals Child Development
Center in San Bernardino is as follows:
Date Action
August 2008 Complete Architectural Drawings
September 2008 City Approvals and Building Permit
November 2008 Begin Renovation Work
February 2009 Renovation Continues
Begin Playground Work
March 2009 Renovation Continues
Begin andscaping Work
April 2009 Complete Renovation
June 2009 60 Day Licensing Period
July 2009 Grand Opening
Investment Required:
Easter Seals needs approximately$1.25 million dollars to carry out the renovation of the existing
building and start-up of the center.
i
Item Sub-Total Total
Renovation Costs
Interior Renovation $750,000
(plumbing,electrical,kitchen,
lighting,carpentry,HVAC,etc.)
Exterior Renovation $100,000
(roof,parking lot,lighting,etc.)
Playgrounds $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,000,000
Equipment& Furnishings
Furniture&Equipment $100,000
Kitchen Supplies $15,000
Classroom Supplies $60,000
Equipment&Furnishings Subtotal $175,000
Start-Up
Staffing $50,000
Other Operating Costs $25,000
Start-Up Subtotal $ 75,000
GRAND TOTAL $1,250,000
07/17/08 15
Proposed PHASE TWO: (Modulars)
Easter Seals hopes to implement a second phase to this project after the renovation of the existing
building is complete. In Phase Two,we plan to revitalize dirt lots to the rear of the property by adding
landscaping,playground areas, two classroom modulars and increased parking capacity. Presently, this
land sits vacant and is an attractive spot for the homeless,illegal dumping, drug dealing and other
criminal activity. These additional modulars will nearly double the capacity of our center.
Our Timeline:
Phase Two will be implemented after Phase 1. Start-up of Phase Two will depend on financing,
fundraising and the availability of program slots from Head Start and the Department of Education.
Phase Two could start as early as 2010 but no later than 2015.
Investment Required (Estimated):
Easter Seals needs approximately $1.5 million dollars to carry out the proposed second phase of this
Project.
Item Sub-Total Total
Modular Costs
Site Preparation &Parking Lot $200,000
Modulars (x2) $800,000
Playgrounds $100,000
Parking Lot $100,000
Landscaping $25,000
Miscellaneous $25,000
Renovation Costs Subtotal $1,250,000
Equipment& Furnishings
Furniture&Equipment $125,000
Classroom Supplies $75,000
Equipment&Furnishings Subtotal $200,000
Start-Up
Staffing $50,000
Start-Up Subtotal $ 50,000
GRAND TOTAL $1,500,000
07/17/08 16