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HomeMy WebLinkAboutR06-Redevelopment Agency AQDCY.~ST FOROo-ISSION/COUNCIL MION Glenda Saul, Executive Director Subject: STURGES CENTER FOR THE PERFORMING ARTS - SET PUBLIC HEARING From: ,et: Redevelopment Agency Date: May 27, 1987 Synopsis of Previous Commission/Council action: 10-5-81 Resolution 4249 - authorizing execution of option agreement with San Bernardino City Unified School District for a lease/purchase on Sturges Junior High School buildings. 7-6-82 Resolution 4345 - authorizing execution of contract for professional services with City Engineering Department for parking lot, Sturges Auditorium. 11-1-82 Resolution 4403 - authorizing RDA to reimburse City for costB relating to construction of parking lot for Sturges Auditorium. 9-10-84 Resolution 4663 - authorizing DDA between RDA and Sturges Center for the Arts. 1-21-85 Resolution 4704 - authorizing and directing execution of agreement for sub-lease of parking area to Sturges Center for the Arts. (Continued on PAle 2) Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION) c a) Move that the Community Development Commission set a joint public hearing for 11:00 A.M. on June 15, 1987 to consider a long-term lease of Sturges Auditorium, from Redevelopment Agency to the City. (MAYOR AND COUNCIL) b) Move that the Mayor and Common Council set a June 15, 1987 to consider a long-term Redevelopment Agency to the City. joint public hearing for 11:00 A.M. on lease of Sturges Auditorium, from ~-U ~J Signature Contact person: Glenda Saul FUNDING REQUIREMENTS: Amount: $ 1.00 Phone: 383-5081 Ward: 1 Project: CCN Date: June 1, 1987 Supporting data attached: YES No adverse Impact on City: tdl Notes: 2523G/JW/SL/RMH 5/11/87 Agenda ITEM f.-(p - > R~ENT AGENCY....Q.EST FORYo-ISSION/COUNCIL Al:fr1ON c STAFF REPORT Fro,.: Glenda Saul, Executive Director STURGES CENTER FOR THE PERFORMING ARTS SYNOPSIS OF PREVIOUS COMMISSION/COUNCIL ACTION (Continued from Page 1) 5-11-87 Floor motion authorizing Redevelopment Agency to exercise its right to repurchase Sturges Auditorium for $1.00, and directing Agency Counsel to prepare appropriate Grant Deed and long-term lease with the City. r "- c 2S23G/JW/sL/RMM s/n/87 AGBNCY.NOueST FORQo..ISSION/COUNCIL A~ION r- l...- c c STAFF REPORT Agency Counsel recommends that a joint public hearing be held to consider the lease of the Sturges Auditorium from the Agency to the City. BACKGROUND Sturges Auditorium was acquired by the Redevelopment Agency in 1981 for $181,802.63. An additional $150,000 was spent to refurbish the building. On November 1, 1984, a Disposition and Joint Development Agreement was executed between the Agency and Sturges Center for the Arts. The Sturges Center purchased the auditorium from the Agency for $1 to be used as a fine arts facility. The obligation of the Sturges Center was to utilize the building for the promotion of fine arts within the San Bernardino community. On April 21, 1987, the Foundation gave notice of its wish to sell the Auditorium to the City. The agreement wi th the Agency gave the Agency a right to purchase the Auditorium for one dollar. On May 7, 1987, the Redevelopment Committee reviewed the request and recommended that the Agency exercise its right to repurchase the property for $1. The Committee further recommended that the Center then be leased to the City on a long-term basis for performing arts purposes. The City would be responsible for all maintenance, security, utilities and insurance. The recommendation was made because the Agency would have a greater flexibility to resell the property at some point in the future, if it is determined that it would be to everyone's best advantage. On May 11, 1987, the Commission authorized the Agency to proceed with acquisition of the Auditorium and directed the preparation of a long-term lease to the City. The draft lease is attached. Before the Redevelopment Agency can lease S~urges Auditorium to the City, a public hearing must be held. Both the Community Development Commission and the Mayor and Common Council need to hold a public hearing concerning the lease. The approval of the Lease will be considered following the Public Hearing to be held June 15, 1987. By that time both the City Attorney and the attorney for the Sturgess Center will have had time to review and comment on the Draft Lease. 2523G/JW/SL/RMM 5/n/87 AGENCY.~ST FOR~/COUNCIL A~ION c c c STAFF REPORT STURGES CENTER FOR THE PERFORMING ARTS Purchase Price Costs of Acquisition, Title, Legal, Insurance, Appraisal, and Soils Test Demolition Rehabilitation Costs of Parking, Driveway, Roof and Utilities Additional Costs of Refurbishment Estimated Share of RDA Closing Costs TOTAL COST TO REDEVELOPMENT AGENCY $16,550.00 6,737.11 63,940.00 93,076.52 150,000.00 1,500.00 $331,803.63 2523G/JW/SL/RMM 5/11/87 - . c c; o :) -J SBEOOOOl-183/2472S/kf 05/12/87 DRAFT LEASE This Lease is made and entered into this ___ day of , 1987 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic (the .Agency-) and the CITY OF SAN BERNARDINO, a municipal corporation (the .City.). WITNESSETH WHEREAS, the Agency owns a certain parcel of real property, together with improvements thereon (the -Property.) generally located at the corner of .E- Street and Eighth Street in the City of ~ San Bernardino, the exact legal description of which is set forth on Exhibit -1. attached hereto and incorporated herein by reference; and c WHEREAS, the City desires to use the Property as an arts center, a theatre and a permanent art gallery, and to ,house various art oriented activities for the benefit of residents of the City of San Bernardino; and WHEREAS, the Agency desires to enter into this lease with the City at below market rental payments in order to facilitate redevelopment of nearby property and to provide benefits and services to the residents of the City. - 1 - c ,-, v ':J :) NOW, THEREFORE, in consideration of the rental hereinafter (, reserved and agreed to be paid to the Agency by the Ci ty and the mutual promises, obligations, agreements and covenants hereinafter set forth and the faithful performance thereof, the parties mutually agree as follows: 1. ProDertv Leased. The Agency hereby leases and lets to the City and the City hires and leases from the Agency, those certain premises located at the Southwest corner of -E- Street and Eighth Street, City of San Bernardino, County of San Bernardino, State of California, more particularly described in Ezhibit -1" annezed hereto and incorporated herein by reference. 2. hm. This Lease shall be for a period of ten (10) (c years, commencing June 15, 1987, SUbject to renewals and various options as set forth hereinafter. This Agreement shall terminate at noon on the fifteenth day of June, 1997 unless otherwise eztended by mutual consent of the parties. 3. Rental Pavment:. The City shall pay to the Agency each year, commencing June 15, 1987, and on June 15 of each year thereafter, a rental payment in the amount of $1.00 per year. 4. 1lli.e.. The demised premises shall be used for various arts purposes. Any lease, sublease or tenancy agreement covering any portion of the premises shall be subject to the approval of the Community Development Commission of the City of San Bernardino. c , . - 2 - c o ""'"' .....) 'J 5. Maintenance and ReDairs. The City represents that it <:: is familiar with the leased premises and has knowl~dge of the present conditions that exist thereon and recognizes that the Agency has purchased the premises for the purpose of providing them for use by the City. The City shall, at its own expense, maintain the leased premises and all improvements thereon in good order, condition and repair. The Agency shall not be responsible for any repairs of any kind whatsoever during the term of this Lease. The City shall provide or cause to be provided all security service, custodial service, janitorial service, repair service, landscaping service, roofing, plumbing, painting, heating, ventilation, air conditioning and any other service of any kind whatsoever in connection with the operation, maintenance and repair of this property. The City shall keep the leased premises and any and all ~ improvements thereon free and clear of all liens, charges and encumbrances and shall, upon expiration of the term of this agreement, return the premises to the Agency in as good condition as when first assumed by the City, normal wear and tear excepted. 6. InsDections. The Agency, its agents, officers and employees, may enter upon the premises at such reasonable times during the City's normal business hours as the Agency deems necessary for the purpose of the inspection of the premises to determine whether the terms and conditions of the lease are being carried out. c , . " - 3 - c o a :> 7. No Waste. Nuisance or Unlawful Use. The City shall <:: not commit, nor allow to be committed, any waste on the premises, or nuisance, nor shall it use or allow the premises to be used for any unlawful purpose. 8. OwnershiD. The City hereby acknowledges and accepts the title and paramount ownership and interest of the Agency to the leased premises and the City agrees not to claim, challenge or contest such title, ownerShip and entire interest of the Agency. 9. Utilities. The City shall pay for all water, gas, heat, telephone service, refuse service, and any and all other services which may be supplied to the premises. 'C 10. Possessory Interest Taxes. The Ci ty covenants during the term of this Lease to pay, when due, all taxes and assessments that may be assessed or imposed upon the City's possessory interest in and to the premises and on any personal property that is located on the demised premises. The City agrees to indemnify the Agency and pay all sums due hereunder forthwith upon demand therefor by the Agency in the event that the Agency is required to make any such payments arising from the possessory interests of the City, its agents, assignees or sublessees. 11. Defaults. In the event the City shall be in default in the payment of rentals or other Charges hereunder or shall otherwise C breach its covenants or Obligations hereunder, and sha.ll be and - 4 - c (C c c o o J remain in default for a period of thirty (30) days after notice from the Agency to the City of such default, the Agency shall have the right and privilege of terminating this Lease and all of its options 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 the Agency shall have the right to take possession of and appropriate to itself without payment therefor any property of the City or anyone claiming under it then remaining on said premises. 12. Surrender Uoon Termination. Upon revocation, surrender, expiration or other termination of this Lease, the City shall quietly and peaceably surrender the leased premises in as gODd condition as same was at the time of the City's entry thereon, reasonable wear and tear excepted, subject to the conditions herein set forth. 13. Insurance. The City agrees to procure and maintain in force during the term of this Lease and any extension thereof, at its expense, a policy or policies of insurance against loss or damage to the leased premises, and appurtenances and permanent equipment, resulting from fire, lightening, vandalism, malicious mischief, and such perils ordinarily defined as -extended coverage" and other perils in a minimum amount of $500,000. The City agrees to procure and maintain in force during the term of this Lease and - 5 - c o o ~ any extension thereof, at its expense, public liability insurance C issued by companies and through brokers approved by .the Agency, adequate to protect against liability for damage claims through public use of or arising out of accidents occurring in or around the leased premises, in a minimum amount of $100,000 for each person injured, $300,000 for anyone accident, and $50,000 for property damage. All such insurance pOlicies shall provide coverage for the Agency's contingent liability on such claims or losses, and the Agency shall be named as an additional insured on all such pOlicies. The City shall furnish the Agency, concurrently with the execution hereof, with satisfactory evidence of the insurance required, and evidence that each carrier is required to give the Agency at least ten (10) days prior notice of the cancellation or reduction in coverage of any policy during the effective period of ~ this Lease. The City agrees that if such insurance policies are not kept in force during the entire term of this Lease and any extension thereof, the Agency may procure the necessary insurance, pay the premium therefor, and that such premium shall be repaid to the Agency as an additional rental installment fOllowing the date on which such premiums are paid. 14. Damaae bv Fire. Earthauake. etc. It is expressly understood and agreed that the rental hereunder shall become due only in consideration of the right to occupy and use the leased premises from year to year and, except as herein provided, it is the responsibility of the Agency to provide such right of occupancy and use at all times. In the event of destruction or damage to the c , . - 6 - c o o :) leased premises by fire or earthquake or other casualty or events so C that they become whOlly or partly unusable, the Age~cy, at its option, may do either of the following: (a) Rebuild and repair the leased premises so that they shall be restored to use, in which case this Lease shall remain in full force and effect. Any excess of insurance proceeds resulting from such destruction or damage over the amount expended for such repairing or rebuilding, shall be paid to the Agency, or (C (b) Declare this Lease terminated and use any money collected from insurance against the destruction of or damage to the leased premises in any manner it deems fit, provided, however, that if the leased premises can be repaired or rebuilt within the periOd for which the City has insurance against business (rent) interruption, and if City shall have sufficient funds from the proceeds of insurance or otherwise for the necessary repairing or rebuilding, the City may proceed under this option with the Agency'S consent. IS. Eminent Domain. If the whole of the leased premises, or so much thereof as to render the remainder unusable for the purposes for which the same was leased, shall be taken under the power of eminent domain, then this Lease shall terminate as of the date possession shall be taken. If less than the whole of the leased premises shall be taken under the power of eminent domain, c , . - 7 - c o o :) and the remainder is usable for the leased purposes, then this Lease <:: shall continue in full force and effect and shall not be terminated by virtue of such taking and the parties may waive the benefit of any law to the contrary, in which event there shall be partial abatement of the rent hereunder in an amount equivalent tD 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 Agency, together with any other money which shall be or may be made available for such purpose. 16. Assianments. The City shall not assign this Lease without obtaining the prior written consent of the Agency. 'c 17. Lease ADDlicable to Successors. etc. the terms, covenants and conditions hereof apply to on the heirs, successors, executors, administrators, This Lease and and are binding and assigns of the parties hereto. 18. Non-Discrimination. The City hereby covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming 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, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of c - 8 - c o o :) the premises herein leased, nor shall the City 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, sublessees, subtenants, or vendees in the premises herein leased. 19. Validity. If anyone 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 of the remaining terms, provisions, promises, covenants, and conditions of this Lease shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. Ie 20. ,Effect of Aaencv's Waiver. The Agency's waiver of breach of one term, covenant, or condition of this Lease is not a waiver of breach of others, nor of subsequent breach of the one wai ved. The Agency's acceptance of rent payments after breach is not a waiver of the breach, except of breach of the covenant to pay the rent payment accepted. 21. Notices. All notices herein required shall be in writing and delivered in person or sent by certified mail, postage prepaid, addressed as follows: Agency: Redevelopment Agency of the City of San Bernardino 300 North -D- Street, Room San Bernardino, California Attn: Executive Director 320 92418 c - 9 - c o o ~ City: City of San Bernardino 300 North -D- Street San Bernardino, California 92418 Attn: c 22. Recordation. The Agency may have this Lease recorded in the Office of the County Recorder, San Bernardino County, State of California, together with the appropriate resolution of the governing body of the Agency. 23. Time of Essence. Time is of the essence herein. IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. Ie REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Chairman ATTEST: Secretary CITY OF SAN BERNARDINO By Mayor ATTEST: C City Clerk /2472S , . - 10 - c o o :> c SBEOOOOl-185/2474S/kf 05/12/87 RESOLUTION NO. DRAFT RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR THE, STURGES CENTER FOR THE ARTS WHEREAS, the Redevelopment Agency of the City of San Bernardino (the -Agency-) is the owner of certain property, together with improvements thereon, known as the Sturges Center for the Arts, located at the Southwest corner of -E- Street and Eighth Street in the City of San Bernardino; and WHEREAS, the City of San Bernardino wishes to lease the C Sturges Center for the Arts from the Agency in order to provide a permanent art activity center for the residents of the City of San Bernardino and to facilitate redevelopment of nearby property; and WHEREAS, a Lease Agreement (the -Agreement-) has been prepared by the Agency and is attached hereto as Ezhibi t -A-, in order to allow the City to operate and maintain the Sturges Center for the Arts for a periOd of ten (10) years at a nominal, One Dollar ($1.00) per year lease cost; and WHEREAS, the City through its Recreation and Parks Department will operate and maintain in all respects, the Sturges Center for the Arts. c , . - 1 - Ci o o :> NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY C THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN .BERNARDINO, CALIFORNIA, AS FOLLOWS: Section 1. The Mayor and Common Council of the City of San Bernardino, California hereby approve the Agreement attached hereto as Exhibit -A- and authorizes the Mayor and the City Clerk to execute the Agreement on behalf of the City. Section 2. This Resolution shall. take effect immediately upon adoption. I HEREBY CERTIFY that the foregoing adopted by the Mayor and Common Council San Bernardino at a held on the day of the fOllowing vote, to wit: (c resolution was duly of the City of meeting thereof, , 1987, by AYES: Council Members NAYS: ABSENT: City Clerk day of The foregoing resolution is hereby approved this , 1987. Mayor of the City of San Bernardino Approved as to form: C City Attorney - 2 - ., c (C c c o o STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, SHAUNA CLARK, City Clerk in and for the San Bernardino, DO HEREBY CERTIFY that the foregoing and copy of San Bernardino City Resolution No. is true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand the official seal of the City of San Bernardino this , 1987. ~ City of attached a full, and affixed day of City Clerk /2474S - 3 - " -0 o o o c SBEOOOOl-186/2475S/kf 05/12/87 DRAFT RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR THE STURGES CENTER FOR THE ARTS WHEREAS, the Redevelopment Agency of the City of San Bernardino (the -Agency-) is the owner of certain property, together with improvements thereon, known as the Sturges Center for the Arts, located at the Southwest corner of -E- Street and Eighth Street in the City of San Bernardino; and ~c WHEREAS, the City of San Bernardino wishes to lease the Sturges Center for the Arts from the Agency in order to provide a permanent art activity center for the residents of the City of San Bernardino and to facilitate redevelopment of nearby property; and WHEREAS, a Lease Agreement (the -Agreement-) has been prepared and is attached hereto as Exhibit -A-, in order to allow the City to operate and maintain the Sturges Center for the Arts for a periOd of ten (10) years at a nominal, One Dollar ($1.00) per year lease cost; and WHEREAS, the City through its Recreation and Parks Department will operate and maintain in all respects, the Sturges c Center for the Arts. - 1 - c c c .c o o o NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAJI1 BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Agency hereby approves the Agreement attached hereto as Exhibit -A- and authorizes the Agency Chairman and the Secretary to execute the Agreement on behalf of the Agency. ....'. Section 2. This Resolution sha 11 take effect immediately upon adoption. ADOPTED: Approved as to Legal Form and Adequacy: By: Counsel to the Commission , . - 2 - c o o o c SECRETARY'S CERTIFICATE OF ADOPTION AND AUTHENTICATION I, GLENDA SAUL, Secretary of the Community Development Commission, DO HEREBY CERTIFY that the attached Resolution is a true and correct copy of Resolution No. adopted , 1987, by the Community Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. COMMISSION MEMBERS DAB. ESTHER ESTRADA 1=1 JACK REILLY 1=1 RALPH HERNANDEZ 1=1 tC STEVE MARKS 1=1 GORDON QUIEL 1=1 DANIEL FRAZIER 1=1 JACK STRICKLER 1=1 DATED: , 1987. c [SEAL] /2475S - 3 - Check ADDroDriate Box BAXa ABSENT ABSTAIN 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 1=1 Glenda Saul, Secretary of the Community Development Commission of the City of San Bernardino , .