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HomeMy WebLinkAboutS02-City Administrator Ll crl:l' OF SAN BERNARDQO - REQUOT FOR COUNCIL AcQON . From: FRED WILSON Assistant to City Administrator Subject: Authorization to execute parking agreement with John B. Lonergan downtown parking district Lot #3. .:rt:.!fy Dept: Date: April 11, 1988 Synopsis of Previous Council action: None Recommended motion: Adopt resolution. cc: Wayne Overstreet Conteet penon: Fred Wilson Phone: 5122 Ward: 1 Supporting data attached: FUNDING REQUIREMENTS: Amount: Source: (ACCT. NO.) (ACCT. DESCRIPTION) Finance: Council Note.: I1t1An""lll Ita", I\I^ S'--~ . CIO OF SAN BERNARDQo - REQU~ FOR COUNCIL AC~N , STAFF REPORT A request to lease fourteen (14) parking spaces in the downtown Parking District Lot #3 for the use of the tenants at the Lonergan Building at 398 West Fourth street was approved by the Parking Place Commission at their March 31, 1988 meeting. The Parking Place Commission previously adopted a policy guideline which authorized the leasing of parking spaces in the downtown parking district lots to businesses located in the district, provided that they keep current all special assessments and business licenses, etc. This policy was adopted in order to accommodate the parking needs of building tenants within the downtown area. The Commission has determined that approval of the request would be consistent with this policy and recommend approval by the Mayor and Common Council for the following consideration and conditions, Under the terms of the agreement, the lessee will pay the City (downtown parking district) the sum of $22.34 per month per space, semi-annually, in advance, and this sum be adjusted annually b~sed on changes in the Los Angeles/Long Beach consumer pr~ce index limited to a maximum of 10% annually, upon acceptance of this agreement. The lessee will deposit with the City $1,876.56 which would be held as a performance bond which would be applied against the first semi-annual payment less $490 for cost of signing and striping, terms to be for 5 years with an option to extend the term for an additional 5 years upon mutual agreement by both parties. The City or lessee could terminate the agreement without cause upon a thirty (30) calendar days written notice from either party. Maintenance and security would be provided at the same time and manner as all other parking areas owed by the City in the same general area. JUSTIFICATION FOR INCLUSION ON SUPPLEMENTAL AGENDA: Mr. Lonergan was present at the March 31 meeting of the Parking Place Commission. At that time, the Commission represented to him that the Parking Agreement would be placed on the April l8 Council Agenda. Mr. Lonergan subsequently made numerous visits and phone calls to the City. He stated that based on the Commission's representations, he had entered into arrangements with his tenants which will result in a financial loss to himself if the item is not heard by April 18. Justification prepared by City Attorney. 1/-11- If 75-0264 o o o o 1 2 3 4 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH JOHN B. LONERGAN RELATING TO THE LEASE OF PARKING SPACES IN DOWNTO~m PARKING DISTRICT LOT #3. BE IT RESOLVED BY THE MAYOR AND CO~P.ON COUNCIL OF THE CITY 5 OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor is hereby authorized and directed 7 to execute on behalf on said City an Agreement with John B. 8 Lonergan relating to the lease of parking spaces in downtown 9 parking district lot #3, which Agreement is attached hereto, 10 marked Exhibit "A", and incorporated herein by reference as 11 fully as though set forth at length. 12 I HEREBY CERTIFY that the foregoing resolution was duly 13 adopted by the Mayor and Common Council of the City of San 14 Bernardino at a 15 day of 16 vote, to wit: 17 18 19 20 meeting thereof, held the , 1988, by the following AYES: NAYS: 21 22 23 24 25 26 27 28 ABSENT: City Clerk The foregoing resolution is hereby approved this day of , 1988. 4-11-88 0 , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE~TY OF SAN BE~RDINO AUTHORIZING THE EXECUTION OF AN AGrEEMENT WITH J~ B. LONERGAN RELATING THE LEASE OF PARKING SPACES IN DOWNTOWN PARKING DISTRICT o TO LOT #3. Evlyn Wilcox, Mayor City of San Bernardino Approved as to form and legal content: .4~ Attorney 4/11/88 o o o o PARKING AGREEMENT (Downtown Parking District Lot #3) THIS PARKING AGREEMENT (referred to as "Agreement") is entered into between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and John B. Lonergan, as Trustee of the John B. Lonergan Trust No. 2 (referred to as "Lessee"). City and Lessee agree as follows: 1. Recitals. A. Lessee is the owner of commercial real property in the City of San Bernardino, located at 398 West Fourth Street. B. Lessee has requested the designation of Fourteen (14) spaces in Parking District Lot #3 for use by employees, tenants and invitees of the owner. C. The Parking Place Commission has determined that the designation of such spaces for use by Lessee is in conformance with its pre-established policy for leasing of parking spaces within the Downtown Parking Place District. 2. Incorporation of Parking Commission POlicy. A. At its regular meeting of December 4, 1986, the Central City Parking Place Commission adopted Policy Guidelines for the leasing of parking space in Parking District Lots 1, 2, 3 and 4. That policy is as follows: - 1 - JFW: ss 4-11-88 o . JFw: ss 4-11-88 o o o "GENERAL" 1. Parking spaces of District Lots 1, 2, 3 & 4 can only be leased to businesses located within the District, providing that all special assessment and business fees for such business is kept current. 2. The total number of parking spaces leased in each of the District lots shall not exceed 50% of the over-all number of parking spaces provided in each lot. 3. All future leases shall be based on the prevailing rates as established by the Public Buildings Division. The location of any leased parking ~aces is subject to possible future relocation within the same lot, 4. All lease requests and applications shall be reviewed by the Central City Parking Place Commission. PRIORITY: No. 1 - All business establishments located adjacent to the District lot. No. 2 - All business establishments located within approximately 600 feet walking distance from the District lot. - 2 - o o o o . No. 3 - All business establishments located in the District. That policy is hereby incorporated herein as a term and condition of this lease. 3. Allocation of Spaces. City agrees to assign and allocate Fourteen (14) spaces located in Parking Lot #3 for use by officers, employees, tenants and invitees at 398 West Fourth Street, San Bernardino. The designated spaces are illustrated on Exhibit "I" attached hereto and incorporated herein by reference. 4. Consideration. Lessee shall pay to City the sum of $22.34 per month per space, payable semi-annually, in advance. This sum shall be adjusted annually based on changes in the Los Angeles/Long Beach consumer price index, provided said adjustment shall be limited to a maximum of ten percent (10%) annually. Upon acceptance of this Agreement, Lessee shall deposit with City the amount of $1,876.56, which will be held by City as a performance bond. City agrees to apply the performance bond funds toward the first semi- annual payment, less cost of $490 for signing. 5. Term. The term of this Agreement shall be 60 months, commencing upon the effective date of this Agreement as set forth in Paragraph 7, unless earlier terminated by either party as provided herein. The City Administrator of the City is hereby authorized to grant a maximum 60 months extension of this - 3 - JFW:sS 4-11-88 o o o o agreement, upon written request for same from the Lessee. The extension shall be upon such terms as shall then be mutually agreed upon by the parties. 6. Termination. This lease may be terminated without cause upon thirty (30) calendar days' advanced written notice from either party, mailed to the address indicated for the receipt of notices. Lessee may at any time, but only upon a similar thirty (30) calendar days' notice in advance, terminate the lease as to any particular space(s) held under this lease, and upon each such termination the total monthly rental shall be accordingly reduced without further notice or agreement of the parties. 7. Effective Date of Agreement. This Agreement shall become effective upon date of execution hereof. 8. Maintenance and Security. City shall provide maintenance and general security at the same times and in the same manner as with all other parking areas owned by City and in the same general geographic area. City shall keep the common areas striped, lighted, and clear and free of rubbish and obstructions of any nature. Lessee shall have responsibility for security of the specific spaces leased. City shall not be responsible for removal of unlawfully parked vehicles or for the security of automobiles parked in leased space. 9. Possessory Interest, The City and the Lessee hereby agree and understand - 4 - JFW:ss A " nn o o o o that this Agreement may create a possessory interest subject to property taxation and that if such possessory interest is created, the Lessee shall pay the property taxes, if any, levied on such possessory interest. The Lessee shall promptly provide to the City upon such payment a written certification, signed by an authorized agent of the Lessee, that all such taxes due, if any, have been paid by the Lessee. 10. Terms Subject to Lease Agreement. This Agreement is subject to the terms and conditions of any provisions contained in any indenture related to bonds issued for the purchase or expansion of Parking District Lot #3. The parties recognize that City's right to occupy the subject premises, or to commit the premises to the uses specified in this Agreement, may expire before this Agreement expires by its terms. In such event, this Agreement shall terminate as of such date as City's entitlement to use and control of the lot expires. 11. Hold Harmless. Lessee agrees to, and shall, hold City, its elective and appointive boards, commission, officers, agents and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Lessee's operations under this Agreement, whether such operations be by Lessee, its officers, employees, tenants or invitees, or by any one or more persons directly or indirectly employed by or acting as agent for Lessee. Lessee agrees to and shall defend City and its elective and appointive boards, commissions, officers, agents - 5 - JFW:ss 4-11-88 o o o o and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the operations hereunder. 12. Liability Insurance. Lessee agrees to procure and maintain in force during the term of this Agreement and any extension thereof, at its expense, public liability insurance adequate to protect against liability for damage claims through public use of or arising out of accidents occurring in or around said parking spaces, in a minimum amount of $1,000,000 for injuries in anyone accident, and $100,000 for property damage. Such insurance policies shall provide coverage for City's contingent liability on such claims or losses. City s.hal1 be named as an additional insured. A certificate of insurance shall be delivered to City's Risk Management Division. Lessee agrees to obtain a written obligation from the insurers to notify City in writing at least 30 days prior to cancellation or refusal to renew any such policies. 13. Assignment. This Agreement shall constitute a revocable license and does not constitute an easement or covenant running with the land. Lessee shall not assign any parking spaces which are the subject of this Agreement without the prior written consent of the City. The parties contemplate that the parking spaces will be devoted to occupants of Lessee's building and customers, - 6 - JFW:ss 4-11-88 o o o o business invitees and employees thereof. Any other use shall be grounds for termination of this Agreement. This Agreement automatically terminates upon any sale or any transfer of more than 50% ownership in' the building at 398 West Fourth Street. 14. Amendment. This Agreement may be amended or modified only by written agreement signed by both parties, Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a continuous waiver of the right to compel enforcement of such provision or provisions, nor shall such waiver be construed as a release of any surety from its obligations under this Agreement. 15. Notices. All notices herein required shall be in writing and delivered in person or sent by certified mail, postage prepaid, addressed as follows: City Lessee City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 John B. Lonergan, as Trustee of the John B. Lonergan Trust No. 2 1103 Bel Air Place Los Angeles, CA 90077 16. Validity. If any terms, condition, provision, or covenant of this Agreement shall to any extent be judged invalid, unenforceable, void or voidable for any reason whatsoever by a Court of - 7 - JFW:ss 4-11-88 o o o o competent jurisdiction, each and all remaining terms, conditions, promises and covenants of this Agreement shall not be affected and shall be valid and enforceable to the fullest extent permitted by law. 17. Entire Agreement. There are no understandings or agreements except herein expressly stated. Any modifications must be in writing. DATED: ATTEST: CITY OF SAN BERNARDINO City Clerk Evlyn Wilcox, Mayor John B. Lonergan, as Trustee of the John B. 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