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HomeMy WebLinkAbout11-City Administrator CIT _ OF SAN BERNARDI I ) - REQUE~ r FOR COUNCIL AC1..JN Dept: City Administrator Subject: Cancellation of parking agreement with Richard and Janice Plastino for 54 spaces in 5-level parking structure ~II~ -J ,~~ From: Fred A. Wilson Date: November 17, 1988 Synopsis of Previous Council action: 8/16/82 - Council adopted Resolution 82-348 authorizing the execution of a parking agreement with Brannfors, White, Rogers & Co. for the lease of 54 spaces in 5-level parking structure. 12/17/84 - Council adopted Resolution 84-534 consenting to the delegation of duties, assignment, consent for time extension to rehabilitate and complete rehabilitation of building and assigning agreement to Richard and Janice Plastino. Recommended motion: Adopt Resolution. Signature Contact person: Fred A. Wilson Phone: 5122 Supporting data attached: Yes Ward: 1 FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. DescriPtion) Finance: Council Notes: 75-0262 Agenda Item No. /1 Cll.. OF SAN BERNARDII~ J - REQUE,,- r FOR COUNCIL AC1...JN STAFF REPORT At their March 31, 1988 meeting, the Central City Parking Place commission considered the cancellation of a parking lease agreement with Richard and Janice Plastino for 54 spaces in the 5-level parking structure. The Plastinos had indicated in a letter to Wayne Overstreet (copy attached) that they had not been successful in pre-leasing their building at 200 North "0" street and that pre leasing was a requirement for obtaining construction financing to rehabilitate the building. Since the Plastinos had been unable to rehabilitate the building, the lease of 54 parking spaces was not needed. The original parking agreement for the lease of these spaces was approved by the Mayor and Common Council on November 5, 1982 with Brannfors, White, Rogers and Company. The parking agreement required the company to pay the City $20 per month per space subject to annual CPI adjustments and the posting of a performance bond of $1,080. Payments were to begin upon the completion of the rehabilitation and occupancy of the building. On December 20, 1984, the Mayor and Common Council approved the assignment of the parking agreement to Richard and Janice Plastino. A six-month extension of time to rehabilitate the building was also approved. Rehabilitation and occupancy of the building were to take place no later than April 1, 1986. On March 19, 1986, Mr. Plastino requested an eight-month extension of time within which to complete the rehabilitation and occupancy of the building which was approved by the Mayor and Common Council. since that date, the Plastinos have accrued approximately $14,000 in unpaid rental payments for the 54 parking spaces. The Central City Parking Place Commission at their March 31 meeting, recommended the following actions to the Mayor and Council: 1. That the parking lease agreement be cancelled. 2. That the outstanding parking rental payments be cancelled. 3. That the City forfeit Mr. Plastino's deposit in the amount of $1,080. The reason for the Commission's recommendation regarding the cancellation of the outstanding parking debt was that the Plastinos had never actually taken possession of those spaces 75-0264 as the building remained qacant during ~ais time and that the spaces had never been assigned specifically as reserved for this building. The spaces have remained available for public use during this entire period. It should be noted that this building has been leased to ATT and rehabilitation of the building is currently underway. According to the Planning Department, this type of use will only require 17 spaces which can be provided on site. of the form motion is recommended. to City Administrator FAW/sh M I N U TE S CENTRAL CITY PARKING PLACE COMMISSION March 31, 1988 The meeting was called to order at 9:30 a.m., in the Management Information Center, Sixth Floor of City Hall, by Chairman Webster. MEMBERS ABSENT OTHERS PRESENT (Cont.) MEMBERS PRESENT OTHERS PRESENT Wally Green, CC Mall Phil Arvizo, Council Office Ann Harris, Main Street Manager Don Kleinhesselink, RDA John Wil son Fred Wil son Wayne Overstreet Gene Kl att George Webster Dorene Dominguez Ed Gardner Art Lindholm Erven Ta 1"1 man Nick Coussoulis Bob Curei Ray Fox Loren Walters ----------------------------------------------------------------------------------- 1. APPROVAL OF MINUTES. Motion: That the Minutes of the meeting held on February 25, 1988, be approved subject to the following correction: On Page 5, third line of motion should read "restriction for 39 spaces in District Parking Lot #1 be eliminated," instead of 24 spaces. Moved by: Art Lindholm Seconded by: Dorene Dominguez Motion carried unanimously. 2. STATUS REPORT ON DOWNTOWN PARKING STRUCTURE/TRANSIT TERMINAL. . .George Webster George Webster related to Commission members that he had recently attended an RDA meeting on the downtown parking and the proposed terminal. He reported that there were no new or significant contributions made by anyone at the meeting. Most thoughts expressed were from a personal point of view. Ann Harris, Main Street Project Manager, stated that another meeting had been set for April 6, 1988, at 10:00 a.m. The RDA panel is attempting to first identify all the facts, and secondly to separate the two issues of transporta- tion needs and parking. Chairman Webster stated that at the time the Central City Parking Place Commission made the recommendation for the construction of a parking structure/transit ter- minal, the recommendation was based on the very best information this Commission had. In spite of certain reservations with regard to the type of people the transit terminal would bring downtown, this Commission still had the foresight to vote for the best solution for long-range downtown parking, and many personal views had to be set aside. CENTRAL CITY PARKING PLACE crn SSION March 31, 1988 Page - 2 - 3. CONSIDERATION OF OPTIMAL TERMS AND RATES FOR PARKING LEASES. . Fred Wilson A memorandum dated March 31, 1988, relative to terms and rates for parking leases, was presented by Fred Wilson. Since the adoption of the leasing policy in December, 1986, he noted that the practice of the Commission has been to execute 20-year term parking leases, subject to a 30-day cancellation clause. Mr. Wilson further noted that the cancellation clause made the lease agreements month-to-month in nature; although the 20-year term implies an inteftt of availability, on the part of the City, to accommodate the stated parking needs of those lessees. Due to the fact that it is difficult to guarantee parking for 20 years, in light of the current parking problems, the City Council requested that the Commission reconsider the term of the agreements Mr. Wilson recommended and that 60-month lease terms become the standard term for future agreements. The lease agreement could also include a clause that would grant a maximum 60-month extension to the agreement upon agreement of both parties. Fred Wilson stated the current lease rate is $22.34 per month and a change of rate is not being recommended at this time as the funds that are generated are used to offset maintenance and operation costs as well as to fund future expan- sion projects for parking. Motion: That Fred Wilson's report on optimal terms and rates for parking leases be accepted and filed. Moved by: Art Lindholm Seconded by: Ed Gardner Motion carried unanimously. 4. APPROVAL OF LEASE AGREEMENTS. . . Fred Wilson/John Wilson The following lease agreements were presented for review and approval: a. John Lonergan Trust - 14 spaces in Lot #3 - Northeast Corner - 4th and "0" Street -- A purchase offer is included in the 60-month lease, in the event the Parking District is expanded. Motion: That the lease agreement be approved and that the purchase offer be accepted and filed. Moved by: Erven Ta 11 man Seconded by: Art Lindholm b. H. S. Brown & Associates - 4 Additional Spaces in Lot #3 -- Motion: That the lease agreement be approved. Moved by: Dorene Dominguez Seconded by: Erven Tallman c. Central City Building Parking - Lot #1 - 5th and "E" Street uVanir Develop- ment - to convert 39 parking spaces to all day parking Motion: That the amendment to Resolution 8234 be approved, as corrected to reflect 39 spaces instead of 24. CENTRAL CITY PARKING PLACE C, jISSION March 31, 1988 Page - 3 - Moved by: Art Lindholm Seconded by: Ed Gardner Abstaining: Dorene Dominguez All motions carried unanimously. 5. CONSIDERATION OF CANCELLATION OF LEASE WITH RICHARD J. PLASTINO FOR 54 SPACES IN FIVE-LEVEL PARKING STRUCTURE. . . Wayne Overstreet A letter dated January 5, 1988, was received from Richard J. Plastino. Mr. Plastino stated that he has been unable to pre-lease the building at 200 North "D" Street, and he has also been unsuccessful in obtaining financing for the construction of improvements to his building. Wayne Overstreet, Superintendent of Public Buildings/Parking Control, reported that at the present time Mr. Plastino is in arrears in his lease payments to the City in excess of $13,000. Suggestion was made that RDA take a good look at this building. Ann Harris advised that Main Street is presently looking at all of the buildings downtown. Pursuant to Wayne Overstreet's recommendation, the following motion was made: Motion: That the Central City Parking Place Commission recommend that: a. The City forfeit Mr. Plastino's deposit b. Cancel outstanding debts c. Cancel his parking lease Moved by: Erven Tallman Seconded by: Dorene Dominguez Motion carried unanimously. 6. PARKING USE SURVEY. . . Don Kleinhesselink, RDA Data compiled as a result of a parking survey taken on District Lots #1, #2, and #3, and the 5-level Parking Structure, Diversified Education Lot, and RDA Lot, was presented by RDA. The report listed information for comparison, such as the number of spaces in each lot, number of leased spaces, public spaces, number of all day spaces, and percentages of morning and afternoon use. Don Kleinhesselink explained his report and answered questions. Wayne Overstreet, Superintendent of Public Buidings/Parking Control, pointed out that another problem we have to face downtown is that we do not have any area designated for R.V. parking. The comment was also made that the top level of the 5-level parking structure is not being utilized, and only a small number of cars are parked there. This is due to the fact that vehicles are exposed to the elements and most persons would rather park their car in a covered space. It was suggested that the City look into the feasibility of constructing a cover, with a light weight frame for the top level of the parking structure. CENTRAL CITY PARKING PLACE COM. ,SION March 31, 1988 Page - 4 - 7. PARKING LEASE AGREEMENT ASSIGNED TO DIVERSIFIED EDUCATION - 58 SPACES IN DISTRICT LOT #2 - FOURTH AND "E" STREETS (Original Lease Entered into between the City and Messrs. Finch and Whittaker) At the 2-25-88 meeting questions were raised as to why this lease was not being administered by the Parking Commission as City funds were used, in part, to acquire and develop this site. The item was referred to staff for a compre- hensive report. Memorandum dated 3-17-88 was received from Glenda Saul, Executive Director of the Redevelopment Agency, in compljance with this Commission's request. Don Kleinhesselink explained the report relative to the Diversified Education Lot transaction. He noted that RDA spent more money for their portion of the improvement than the City's total contribution, which amounted to a shortfall of approximately $400,000. Therefore, to settle the accounts, RDA proposed to retain the title on Parcel APN 134-101-08 and a portion of APN 135-101-30, and the agency is keeping the Diversified Education lease to retire the debt in- curred in this project. Discussion also ensued relative to the accelerated repayment schedule approved by the Council for the Secondary Assessment Roll. Wayne Overstreet stated that the City did advance RDA $823,789.46 to start the expansion project. He noted that some ambiguity exists as there was never any real clear repayment schedule. Some concern was expressed in terms of the impact of the increased assessment on property owners and the need to conduct a public hearing to inform all property owners of this issue. Motion: That the Central City Parking Place Commission request a public hearing on behalf of the downtown property owners to address the accelerated payback arrangements for the Secondary Roll, and that all affected property owners be notified of the hearing. Moved by: Erven Ta 11 man Seconded by: Dorene Dominguez Motion carried unanimously. 8. Adjourn Meeting At 11:07 a.m., there being no further business, the meeting was adjourned to Thursday, April 28, 1988, at 9:30 a.m., in the Management Information Center. Respectfully submitted, a~~ I~ecretary y, j 10 11 12 13 1 RESOLUTION 2 RESOLUTION OF THE CITY OF SAN BERNARDINO DECLARING NULL AND VOID THE AGREEMENT EXECUTED BY AND BETWEEN THE CITY OF SAN 3 BERNARDINO AND RICHARD AND JANICE PLASTINO, ASSIGNEES OF BRANNFORS, WHITE, ROGERS AND COMPANY RE: 54 SPACES IN THE FIVE- 4 LEVEL PARKING STRUCTURE, DECLARING THE FORFEITURE OF THE PERFORMANCE BOND AND WAIVING PAYMENT OF ACCRUED RENTS. 5 WHEREAS, on or about November 5, 1982, the Mayor and Common 6 Council adopted Resolution No. 82-348 authorizing the execution 7 of a Parking Agreement with Brannfors, White, Rogers and Company 8 relative to the allocation of 54 parking spaces on the second 9 level of the five-level parking structure (Agreement); and, WHEREAS, on or about December 20, 1984, the Mayor and Common Council adopted Resolution No. 84-534 consenting to Assignment and Delegation of Duties and Consent to Extension of Time For Performance of Commencement of Rehabiitation and 14 Completion of Rehabilitation of Building, assigning said 15 Agreement to Richard and Janice Plastino; AND, 16 WHEREAS, at its meeting of March 31, 1988, the Parking 17 Place Commission heard evidence as follows: 18 1. That the Plastinos are unable to meet their 19 financial obligations under the Agreement; 20 2. Rents on the 54 parking spaces have accrued 21 in the amount of $13,000.00, but the Plastinos have 22 never taken possession of such spaces and the City 23 had not otherwise been caused to lose the use of such 24 spaces as a result of any activity of the Plastinos; 25 and, 26 27 28 JFW:ss November 1, 1988 1 1 3 . The city holds cash in the amount of 2 $1,080.00, as a performance bond from the Plastinos. 3 Based thereon, the Commission adopted the recommendation 4 that the Agreement be declared null and void and of no further 5 force and effect, for failure of the Plastinos to meet their 6 obligations thereunder; that the performance bond be declared 7 forfeited; and, that the Plastinos be forgiven all rents accrued, 8 but unpaid, for the use of the 54 spaces on the second level of 10 of Second and "0" Street. 9 the five-level parking structure located at the northwest corner 11 WHEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF 13 12 THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. 14 Agreement is hereby declared to be null and void and of no Pursuant to Section 3 of the Agreement said 15 further force and effect and the performance bond deposited with 16 the City is hereby declared forfeited. 17 SECTION 2. All requirements for payment of rents for the 18 use of the 54 parking spaces on the second level of the five- 19 level parking structure accruing after date of assignment to the 20 Plastinos, or as otherwise required to be paid under the 21 Agreement are hereby deemed waived as to Richard and Janice 22 Plastino. 23 24 25 26 27 28 JFW:ss November 1, 1988 2 10 1 I HEREBY CERTIFY that the foregoing resolution was duly 2 adopted by the Mayor and Common Council of the City of San 3 Bernardino, at a meeting held on the day 4 of 19 , by the following vote, to wit: 5 AYES: Council Members 6 7 NAYS: 8 ABSENT: 9 City Clerk The foregoing resolution is hereby approved this 11 day of 19 12 13 14 Evlyn Wilcox, Mayor City of San Bernardino Approved as to form 15 and I egal content: 16 17 Ci,:t i I './ 18 19 20 21 22 23 24 25 26 27 28 JFW:ss November 1, 1988 3 e e Wayne Overstreet, Supt. Public buildings/parking Control City of San Bernardino 300 north "D" St. San Bernardino Ca 92418 5 January 88 Dear Wayne In response to your letter dated 9 December 87, regarding my lease for 54 parking spaces agreement NO 84-534: Unfortunately, I have not been successful in pre-leasing the building at 200 N "DII St. Pre-leasing has been a requirement for obtaining construction financing. At one point in time I had a committment for financing which was approximately $206,000 short. I was in negotiations with the RDA for assistance but at the last minute the offer of assistance was withdrawn. The reason given being that San Bernardino doesn't need another vacant building down town. _..A The 54 spaces assigned in the lease have never been occupied by myself of anyone in my control. They have never been marked off as assigned and remain as generally available for public use. To date I have paid approximatelY $25,000 in fees to San Bernardino in regard to this building. I am not in the position to pay any further fees without some reasonable probability of return. It will not require any legal action to viod my lease. Obvously I would prefer to have the lease remain in place. However, if that is not possible, then we will have to reach some other arrangement. ........."-:~},~ c: -~~~(~1Jssin-;- t1,-~- ..~':J..1.- ~ .'-'" , ~. . I ..~""' , . )- - - .-.- '---" -.. ~ . , . . ;' / /- ~.' .--- .-L...L.,.-.._ ./ ... I t - 1307 Santanella Terr Corona Del Mar Ca 92625 I b .---- .:~ .::- ~ ~~ CIT.!~~~~~N BERNARDINO v o:?1'":-~:;'.. "r" ~._~~. " " 300 NORTH no.. STREET. SAN BERNARDINO. CALIFORNIA 92418 ~ EVLYN WILCOX " ."" , Mavor MemDers of till Common ':ouncll Estller EstrlClI. . . . . . . . 0 .' . First WlrCl JICk Reilly. . 0 . 0 . . . . . 0 0 . . SeconCl WlrCl Rllpll HernlnClez . . . . 0 . . .' . Tl'llrCl WlrCl Steve Mlrks . . . 0 . . . . . 0 .. Fourtll WlrCl GorClon Qule' . . . . 0 . . . . " Flftl'l WlrCl Oln Fruier . 0 . 0 0 . . . . . Slxtl'l WlrCl J.".. Strlck"r 0 . 0 . . 0 . . .. jeventl'l WlrCl . r '(. .. u.~ Decemb~ 9, 1987 Richarc & Janice P1astino 1307 Santanella Terrece Corona Del Mar, CA. 92625 Dear Mr. Mrs. Plastino, I , i 1 I I : Our records show that maintenance and utility cost for the 54 r parking spaces in the 5 level parking structure, in accor- I dance with agreement No. 84-534, has not been paid since I January 1987 and is now outstanding in the amount of $13,867.20. I The City Attorney's Office has advised us that service of a "NoticE to Quit", under Section 1161 of the Code of Civil Procedt re, may subject your Parking Agreement to terr:lination without formal court action. We do lout desire to take such action, and therefore urye <:-.r - you bring this account current immediately. If you fa~l ~~ bring tnis account current within ten (10) days, we \;ill ask the Ma18r and Common Council to declare a default lr agreem'lt, and may declare the agreement fo:feitec a~ , writ o. possession in an unlawful detainer action. ~ WO:mal /~ , "