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HomeMy WebLinkAbout02.A- City Attorney DOC ID: 4524 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Agreement/Contract Amendment From: Jolena E. Grider M/CC Meeting Date: 06/27/2016 Prepared by: Georgeann "Gigi" Hanna, Dept: City Attorney Ward(s): 1 Subject: Motion to Authorize City Manager, as Successor Agency Executive Director, to Execute Amendment to Lease of Real Property Located at 296 E. 3Rd Street from City of San Bernardino to United States of America, To: (1) Extend Term of Lease through May 14, 2052 and (2) Substitute California Army National Guard for United States of America as Lessee. (#4524) Current Business Registration Certificate: Not Applicable Financial Impact: Account Budgeted Amount: <<Insert Amount>> Account No. <<Insert Account No.>> Account Description: <<Insert Account Description>> Balance as of: <<Insert Date>> Balance after approval of this item: <<Insert Amount>> Motion: Authorize City Manager to execute lease amendment. Synopsis of Previous Council Action: May 3, 2010 -- Mayor and Common Council adopted Resolution No. 2010-103, authorizing sale of above property to Redevelopment Agency. Action Requested: It is requested that the Council, and the Council acting as the Successor Agency to the RDA, authorize the City Manager to execute the attached Lease extension agreement on behalf of the City and the Successor Agency. Background: The subject property (Property) consists of a 2.57-acre parcel located at the northwest corner of North Waterman Avenue and East Third Street. In May of 1952, the City leased the Property to the United States of America (USA) for military uses. A copy of the lease from the City to the USA (Lease) is attached. The initial term of the Lease was 50 years, to May 14, 2002. Under section 3 of the Lease, the USA had the option to extend the Lease term by 50 years, to May 14, 2052, by giving notice of its exercise of the option 90 days before May 14, 2002. In May 2010, the Mayor and Council approved the sale of the Property from the City to the former Redevelopment Agency (RDA) along with an adjacent parcel, for a total of $500,000. The City believed at that time that the USA had exercised the option to extend the Lease. Resolution No. 2010-103 (copy attached), approving the sale of the Updated: 6/23/2016 by Georgeann "Gigi" Hanna - —_ 4524 Property to the RDA, recited that the Property was "encumbered by a lease to the United States of America Army Reserve for $1 per year which expires May 14, 2052." The former RDA was dissolved by operation of state law on February 1, 2012 and the City as Successor Agency (Successor Agency) became the owner of the Property. In December 2015, the Successor Agency submitted its proposed Long-Range Property Management Plan (LRPMP) to the California Department of Finance (DOF), as required by state law and as approved by the Mayor and Council in September 2015. State law requires that each successor agency prepare a LRPMP that addresses the disposition and use of the real properties of the former redevelopment agency. Permissible uses include the retention of the property for governmental use, the retention of the property for future development, the sale of the property, or the use of the property to fulfill an enforceable obligation. The LRPMP proposed that the Property be transferred to the City for governmental use. The DOF subsequently approved the LRPMP. Thus, it is anticipated that the Property will be transferred to the City, although at present the RDA is shown as the owner of record on the County Assessor website. In the narrative portion of the LRPMP describing the Property (referred to in the LRPMP as the "U.S. Army Reserve Property"), the LRPMP stated: "Although the U.S. Army Reserve Property is currently unoccupied, the U.S. Army Reserve retains the ability to re-occupy the property at any time during the lease, which runs through 2052." The LRPMP estimated the current value of the Property as $1.00, based on the Lease and on the Property's future use as a pocket park/community center to serve the residential developments located west and south of the Property. In various items of correspondence over the years (attached), the City and USA indicated their mutual belief that the Lease had been extended to May 14, 2052. Notwithstanding the above indications that the City and Successor Agency considered the 50-year Lease extension option to have been exercised, staff has been unable to locate documentation showing that it was formally extended. The USA and the State of California are now proposing that the Property be upgraded with improvements using state and federal funds. The Property will continue to be leased to the USA, but will be operated by the California Army National Guard (CANG). According to information provided by the State, the primary mission of the CANG is to respond to state emergencies and use military training and equipment to save lives and protect property. CANG armories are located in over 100 communities throughout the State. Armories are the backbone of National Guard emergency response operations. During an emergency, armories are used as troop and equipment staging areas, emergency operations centers, and emergency evacuation centers. The California Military Department (CMD) maintains 109 Army National Guard armories. Updated: 6/23/2016 by Georgeann "Gigi" Hanna 4524 The San Bernardino Armory is located at 266 and 296 East Third Street (APN: 0135- 191-13 and -14) and was built in 1969. The site includes 26,274 square feet on 4.27 acres. It was acquired by CMD from the Army Reserves and has been vacant for the past five years. The armory requires extensive renovations due to damage by vandals who removed the plumbing, electrical and HVAC components from the building. In order to restore and renovate the facility, CMD is seeking $4.8 million ($2.4 million State General Fund and $2.4 million federal matching funds) for the construction phase of the San Bernardino Armory Renovation project. The original scope of the project submitted in 2015-16 contemplated a two-phase project. The first phase would have involved the renovation of the most critical life and safety issues; including HVAC, electrical energy upgrades, rewiring, plumbing upgrade or replacement, lead and asbestos abatement, energy efficient window installation, reroof, painting, required regulatory upgrades to the latrines, and vault upgrades. Phase two envisioned the conversion of the kitchen to a training room, landscaping, the conversion of a Field Maintenance Shop into an equipment storage facility, and furnishings. It has been determined to be more efficient and cost effective to complete the San Bernardino armory renovation project in one phase. Therefore this proposal requests an expanded scope of work that combines both of the previous phases. Specifically, the project will include: Selective demolition Lead and asbestos abatement Site work including utility upgrades and paving Building structural improvements Comprehensive HVAC upgrade Electrical upgrades including LED and energy-efficient lighting Complete facility rewiring Plumbing upgrades and/or replacement Energy efficient window installation Reroof Interior and exterior painting Required regulatory and code compliance upgrades to the Latrines Vault upgrades Convert kitchen area into training space Install drought tolerant landscaping Convert Field Maintenance Shop building to organizational equipment storage Provide individual equipment lockers for assigned personnel Comprehensive furnishings replacement for the armory and storage facility In order for CMD to obtain the necessary funding from the DOF, CMD needs to establish that it will have an underlying property interest which meets or exceeds the added functional/design life of the improvements (minimum of 30 more years), which, in effect, necessitates a Lease term extending to 2052. Updated: 6/23/2016 by Georgeann "Gigi" Hanna 4524 Supporting Documents: Resolution 2010-103 transfer to RDA (PDF) Lease 1952 (PDF) Supplement 3 extending lease to 2052 (PDF) 2009-2010 Ryan Sandoval emails and memo (2) (PDF) d I Updated: 6/23/2016 by Georgeann "Gigi" Hanna (NOTE: COMPANION RESOLUTION CDC/2010-24) 2.A.a 0 1 RESOLUTION NO. 2010-103 cc 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO APPROVING THE SALE OF CITY PROPERTY GENERALLY LOCATED ON THE NORTH SIDE OF THIRD STREET, 4 WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT AGENCY 0 OF THE CITY OF SAN BERNARDINO ("AGENCY") AND DIRECTING 5 AND AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE ' c� 6 AGREEMENT AND THE EXECUTION OF A GRANT DEED FOR THE R SALE OF SAID PROPERTY (CENTRAL CITY EAST REDEVELOPMENT o 7 PROJECT AREA) % 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a E a 9 community redevelopment agency duly created, established and authorized to transact business and a- 10 w exercise its powers, all under and pursuant to the California Community Redevelopment Law 0 11 ("CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 12 13 at Section 33000 and is authorized to construct improvements located within the approved d 0) redevelopment project areas in the City of San Bernardino ("City") in accordance with the CRL; and 14 rn 15 WHEREAS, the Project Area displays substantial and pervasive symptoms of blight and 0 16 cannot be remedied by private parties acting alone without community redevelopment assistance; a 17 and N 18 WHEREAS, the City, a municipal corporation, is the owner of the hereinafter described o 19 parcels of real property, generally located on the north side of Third Street, west of Waterman .2 20 a`1 1 21 Avenue, in the City of San Bernardino, State of California, known as Assessor's Parcel Nos. w 22 ("APN") 0135-191-13 and 0135-191-14 and more fully described in Exhibit "A" attached hereto 0 23 and made a part hereof; and N c 24 WHEREAS,the Agency desires to acquire these parcels of land for future development; and 25 ° WHEREAS, the Mayor and Common Council of the City of San Bernardino ("Council") 26 believe it is in the best interest of the City that said portion of real property be sold to the Agency; 27 28 and a P 1 Agendas\Reaohuions\Resolutioos\2010\05-03-10 Pmnhue dproperties on 3rd and Waterman MCC Rew Pg.9 1 Z.A.a 2010-103 o 1 WHEREAS, the parcel known as APN: 0135-191-13 is encumbered by a lease to the State � r n3 2 of California National Guard for$1 per year which expires on April 30, 2062, and parcel known as d 3 APN: 0135-191-14 is encumbered by a lease to the United States of America Army Reserve for$1 L 4 per year which expires May 14, 2052; and 5 `6 3 WHEREAS, due to the encumbrance of said leases on said parcels herein described, City 6 0 7 and Agency staff have determined the parcels to have nominal fair market value; and c Z g WHEREAS,the City and the Agency have negotiated a sales price of five hundred thousand E a 9 dollars($500,000)for both parcels herein described; and 10 WHEREAS, pursuant to Section 2.65.050 of the San Bernardino Municipal Code, City 0 11 3 owned property may be sold to another public agency without the need for competitive bid. 12 = Q NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 13 L THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS a 14 y FOLLOWS: 15 Section 1. The information set forth in the above recitals of this Resolution is true and o I 16 E correct. a 17 ;a Section 2. After having conducted a duly noticed public hearing, the Council deemed it v 18 appropriate to approve this Resolution. The sale of that certain property generally located on the a 19 north side of Third Street, west of Waterman Avenue, more fully described in the Sales and 20 21 Purchase Agreement ("Agreement") attached hereto as Exhibit `B", to the Agency in the amount of L Five Hundred Thousand Dollars($500,000) is hereby approved. r, 22 0 Section 3. That the Mayor of the City of San Bernardino is hereby directed and authorized 23 N to execute on behalf of said City, the Agreement, a copy of which is attached hereto as said Exhibit c 24 "B", and approve a form of a Grant Deed in similar transactions for the sale of said City property as c 25 a described herein. 26 Section 4. Said Agreement shall be null and void if either party fails to execute the E 27 Agreement within sixty(60)days of the date of adoption of this Resolution. 28 a P:1AgendagAesoltuions Utesolutions12010\05-03.10 Purchow of properties on 3rd and Wsteroun MCC Rm 4.6 2 2010-103 • o 1 Section 5. This Resolution shall take effect upon its adoption and execution in the manner a 2 as required by the City Charter. w �o a� 3 L 4 v L 5 c� 6 0 7 /// z E a 9 w 10 U L 11 3 12 13 al Q 14 a� 15 0 16 /// E a 17 N LO 18 Q 19 0 r 20 0 21 L r M 22 O ' 23 /// C 24 0 25 /// d 26 E 27 /// U r 28 P;UgendulResoltuions\Rcwlutions\2010W 5-03-10 Purchase of pmper ies on 3fd and Waterman MCC R— Packet Pg. 11 3 2.A.a 2010-103 w 0 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY a OF SAN BERNARDINO APPROVING THE SALE OF CITY PROPERTY co 2 GENERALLY LOCATED ON THE NORTH SIDE OF THIRD STREET, 3 WEST OF WATERMAN AVENUE TO THE REDEVELOPMENT AGENCY c OF THE CITY OF SAN BERNARDINO ("AGENCY") AND DIRECTING D 4 AND AUTHORIZING THE EXECUTION OF A SALES AND PURCHASE AGREEMENT AND THE EXECUTION OF A GRANT DEED FOR THE 5 SALE OF SAID PROPERTY (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) cc 6 0` 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and M 8 Common Council of the City of San Bernardino at a Joint regular meeting thereof, E a held on the 3rd day of May , 2010,by the following vote to wit: 2 0 10 Council Members: Ayes Nays Abstain Absent U 11 MARQUEZ x 3 12 DESJARDINS x BRINKER x a 13 SHORETT x a 14 y KELLEY x 15 J JOHNSON x 0 0 16 E MC CAMMACK x a 17 a N U) 18 7*!_ 19 Racht4 G. Clark, City Clerk 0 20 The foregoing Resolution is hereby approved this low day of May ,2010. H7 C 21 M 22 ° Patric s, ayo 0 23 N c 0 24 Approved as to Form: 0 25 � d James F. Penman, City A orney E 27 28 a P-u tgrndas\Rcsoltuions utesolutions1201010"3-10 Purchase dproperties on 3rd and Wale—MCC Reno 12 4 2010-103 ® EXHIBIT "A w " y LEGAL DESCRIPTION can as r L PARCEL ONE: L (APN: 0135-191-13) c� PARCEL 7 OF PARCEL MAP NO. 7140, AS PER PLAT RECORDED IN BOOK 69 OF PARCEL MAPS,PAGES 1 AND 2,IN THE OFFICE OF THE COUNTY z RECORDER OF SAN BERNARDINO,STATE OF CALIFORNIA. L a 20 PARCEL TWO: c w (APN: 0135-191-14) v r PARCEL S OF PARCEL MAP NO. 7140,AS PER PLAT RECORDED IN BOOK 69 3 r OF PARCEL MAPS,PAGES 1 AND 2, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO, STATE OF CALIFORNIA, SUBJECT TO THE RESERVATION OF AN EASEMENT FOR STREET AND HIGHWAY a, PURPOSES AS DESCRIBED IN RESOLUTION NO. 91-2 OF THE CITY OF SAN BERNARDINO, RECORDED JANUARY 15, 1991 AS DOCUMENT NO. 91-016345, OFFICIAL RECORDS OF SAID COUNTY. Z O E L Q N to Q 0 O L d w N C !4 L r M O r O r O N C O _7 O N d r C d E PacW t V R a+ r+ Q Pg.13 2.A.a 2010-103 o N EXHIBIT "B" y Co d D 0 3 C O to Z E Q M O R U L 3 c m E m a> a� a� N R N J O E Q N LO Q O d w N C RS a� M O r _O O N C O r O O N N r C d E L V m r r Q Packet Pg. 14 2010-103 o SALE AND PURCHASE AGREEMENT cc cc THIS AGREEMENT, executed this 31d day of May, 2010, by and between the CITY OF SAN BERNARDINO, a municipal corporation ("SELLER") and the "REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic", `o ("BUYER")mutually agree as follows: L 1. SELLER, upon payment from BUYER in the amount of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00), shall deliver unto BUYER an executed Grant Deed for that certain real property generally located on the north side of Third Street, west of Waterman cc Avenue, in the City of San Bernardino, ("PROPERTY") being Assessor's Parcel Numbers Z (APN) 0135-191-13 and 14, more fully described in Exhibit "A" attached hereto and made a E part hereof and depicted on a plat attached hereto as Exhibit`B", and made a part hereof. a R 2. BUYER shall deliver unto SELLER, funds in the amount of FIVE HUNDRED THOUSAND o DOLLARS ($500,000.00) as payment in full for the purchase of said PROPERTY. L 3. SELLER is selling said PROPERTY to BUYER and BUYER accepts from SELLER said PROPERTY in an"as-is" condition, including the existence of any liens, encumbrances, and easements on said PROPERTY including the leases set forth hereinafter. £ d d 4. BUYER hereby acknowledges and accepts that portion of the PROPERTY known as APN: a a 0135-191-13 subject to an existing lease to the State of California, as set forth in the Lease y Agreement between SELLER and said lessee, dated May 1, 1962, and any and all J amendments thereto. BUYER further acknowledges receipt of all documents pertaining to Z% said lease from the SELLER and SELLER hereby assigns, and BUYER hereby accepts all 0 E SELLER's rights, interest and obligations as Lessor as set forth in said Lease Agreement. a v 5. BUYER hereby acknowledges and accepts that portion of the PROPERTY known as APN: 0135-191-14 subject to an existing lease to the United Stated of America, as set forth in the Lease Agreement between the SELLER and said lessee dated May 9, 1952, and any and all amendments thereto. BUYER further acknowledges receipt of all documents pertaining to 0 said lease from the SELLER and SELLER hereby assigns, and BUYER hereby accepts all SELLER's rights, interest and obligations as Lessor as set forth in said Lease Agreement. U) c R 6. BUYER shall pay all recording fees and title fees, including but not limited to title insurance. c r 7. No obligation other than those set forth herein will be recognized. o N C O r O W O Q' G d E L V r a 1 Padwt Pg.f5 2010-103 w SALES AND PURCHASE AGREEMENT-CITY PROPERTY GENERALLY LOCATED ON THE NORTH O SIDE THIRD STREET,WEST OF WATERMAN AVENUE. R r a m IN WITNESS WHEREOF, the parties have executed this Agreement the day and year as set F forth above. L 0 w �o BUYER: SELLER: c� REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CITY OF SAN BERNARDINO z E Q BY: BY-19 2 EMIL MARZU LO, PA C J. Mb-1tftf9.tqayor c Interim Executive Director U L r+ 3 C N E Approved as to Form: ATTEST: a By: a� JAMES F. PENMAN, Ci Attome RAC EL CLARK, City Clerk J a N U) 0 0 w co O r O T O N C O r 3 O N d Q' C d t V r Q 2 Packet Pil.16 2010-103 ® w EXHIBIT "A" N r LEGAL DESCRIPTION in m r .E L PARCEL ONE: L (APN: 0135-191-13) PARCEL 7 OF PARCEL MAP NO. 7140, AS PER PLAT RECORDED IN BOOK 69 `o_ OF PARCEL MAPS,PAGES 1 AND 2,IN THE OFFICE OF THE COUNTY z RECORDER OF SAN BERNARDINO, STATE OF CALIFORNIA. L a PARCEL TWO: o` w (APN: 0135-191-14) L a.+ PARCEL 8 OF PARCEL MAP NO. 7140,AS PER PLAT RECORDED IN BOOK 69 OF PARCEL MAPS, PAGES 1 AND 2, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO, STATE OF CALIFORNIA, SUBJECT TO THE RESERVATION OF AN EASEMENT FOR STREET AND HIGHWAY PURPOSES AS DESCRIBED IN RESOLUTION NO. 91-2 OF THE CITY OF SAN Q as BERNARDINO, RECORDED JANUARY 15, 1991 AS DOCUMENT NO. 91-01634S, OFFICIAL RECORDS OF SAID COUNTY. r O E L Q a N Lo a 0 O L w N C 2 L M O r O r O N r- 0 7 O H O :.7 C d E L V !O r rr Q 2.A.a 2010-103 H Ln n V � � w �I--ALLEN-ST----- N O r 0 190.75 N ° o � � N Hr1 I I > 3 D C7 � y y I 0 � m CD o m Y CD z M ZD p N M I � D O `+J 1� I � p m z ' n> ,y '° D i cim 0 m co m t O� o > O � o o L z 3 CD CD CD O I p 41 im Q CD 249.15' J � W �3 N 1 °I E \J) ° T Q '- S�3 --7 0 DZ -0 I 1 O p w A '' f ?U N < C x y 0 N wm I D I o p 6O �f mo I m W D ' " I n a -u O T O m FT1 N D Z z D w m I I I in DR o I N AZa I !a > �z m M U m r En rri OM I µ m° ' f cn o ZC) � I mm f o m I I o m m- 0 I vo c C ohs�A O m I (n�� I I oAV)zA O mTAi N M v'so� I d Z06 41.25'1 N 1 a Ism I I E z m 0 I N f [A ;D I - - -- -- w O i D ± � Q Zm �-- v ° WATERMAN AVENUE - Packet Pg. 18 S,. f " -err;�+. *6;i 4�f!"c�.i�C£'a.'13J 9�t7�:ii'Ii3�i3i x#115 D�F'i�4�`��i4F��':•��r�::: - "'.`� ��.. f�gt�����i ' t. sr '•;, Wk­ mI LiOfitT. 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'ff � iT«..�k USAOS Q G• Y this I -3 : - - 40 3<0 altaret3cl3 L 's, attan fir-lur and treat addle! i�.'4, ,�Vr-uttures or aims ;u ar aparn the preni.ssa ereb�,r lsauei, Whiah nx'tu,as- additiam Or StruotilrreG '.s.a u Pan- `or "Mae hod to she said �r�-�s�$. sP�a11 �G �::triT :a��*.u.j��h� property 2 CI tcL 0 8I�IIIBsYts A71,� 3f a.3 removed 4%! Li rlfiT7.' SS, L�t.?-iCiSQd t 1�y b4e °*17'�78Y'mmeAS-w #; �'3° C1 fie C.overrzmcnt Ebtll surrander passessian of fine pre? aps upon sxp=rition or ,,�x��� E tierminatirin of this lasso a:i. if required b7- the.lasuair° shall, prior to expira#it= or z' *rs± ?aaseR rast6rs the promi-ses to as load cood"l, C, �s t;�p?� H`#'` N rxlstin, at the ti a of w,.taring apart the sage tinder' thin lease, raa:iotiable alad orE-r_sry wear and uaar and d=Ogas by 'ohs abuts or •6Y 31raktLtetweeS aver wh-loh the },oar ment h,as no control, exoepL$d; provided t:he G'overm—ent shall "Nave tor- 3-; ht d px'zv;F pip a? mkin o. tsa'sh settlai-�nt —Atn. the 1es,aor its .lism of pat- 1-o-rrasn0a of its as igatti..cr, if any, to restore tho real e4 ate, pprsprml proportyr tier e:€ be da 3ssd har:;in): or both real end pas-sonaL, pnonerty, tti^h a 1. 'Mont; rich?l iu r?o event exr eel the amount or ' W Aiinjoution iii va3 ue 0 a,. xarnzses r3svLu�rg. tram the LITtver erEtrs use atd acaup's cy- prrv:Lda3 4f rthar that if Liim c_3w�i`r requires res-ora it» of the presses to. su&h aandition csr paymentA in lia'z t:kl�rA-Qf,. the �3S5fi c A.l t &�-_4� written YG$7�3 FJ3$nr to the Gov-- r nt 1aast k z _ dZYs #'�!I027e the e=xrati O.C: or t rmiva:i;xt3 of t'h 3easq, tu��lt3 n tttut!a ltr a '' v^!sptabla seittlnri€tnt b6 na•de thex euader 'IU+ha rraarbOs seta 2 coter' ':moo o r=«tia� at-esar�si=t iae�`ptc sfFsazin &ucs�i sst$lsiaen lt� use ahetae of.ec :: `:�y" Z t96?'a1;zt9tZ933 as of the date of treis: leasa or the:purposl 'eor ,��io�s tba o"rn-- r-s-3t tr irill lase the d�e�lirLi ' .i" a�� �. s{ fr y eFi s se,, N}ie sierra Z ,$,agrared hai61 t has baen baaed ca E i^r of the TJ3'Q:iises for a ?oultuMl purposee. II2 view tba s,ofi vile te-m ' �T`�t 1{ Q r.:esa.r 'sIe end artliz!$_ry wear and tar", tisa& heroin shal3. tee- i .reasor:able t 'c �Tx Y s7i fti?3,s.1'ywaa2` fund Is"s°M t:.:�4u- !3C}11,i4 be 5'xp'8aved to t'&&htlt it us if tttE..tlT'9�z!.s.4t[i re. A�'i,CUltur.r�I, r�:rpas$s. . � � •�, ;° t0 11. The G7*$i �. S' g -. i i t f� U n en way t rm,na;,e ,,hi lass at ati t3 �r g: VIU6 t!a�rt,� (3") days= notice in writia; to the Lessor, and no rent' sha31 toorus' meter zhT si eotivR data of ;srminstian; provided that iri the e4eat nty tl s:raramsnt �s to=t-eted on the lvassd prara:ises wb this ti fr etian deter t}se r zi will c3n'.inac s c il =Yxt� , y a k E p.o}�pre le? r"emtss , reaQre�3 rsn ccstie#oed as pra�irled.:fcsr in Vlx m her$o s or e, oi%;a apd.passeesion ts7id r$4 to the It- sor, rs X A CD W Aw Z-- 644*1 come VT VAOL# ` #} s E 4 x,V1 L N is f"ci N r: Esc.: a' } ;::'S:'i:.:.;nom•, 'G 2JLb mWed Pr. to Ozmeam s ' 4 r ' t ii j !C LEI ;MCNZES. WEEfi,E,G ,the Panes here-tea have hereunto subscribed their names as � E Eof,the date first above w-,iiten. h] Presence nf: div quo i O F ham- � @Y'�y n'►�.�, -. :: ++ Ri r - - - O W s UIall:f`MD STATES'.OF AI IUCA—, g 8yt, L Vie;:fit. (n. 7:esaas IS, a ceMorntl=, the rallawing certifizate s?iall'be el.mtutad: by the seamy:or � �sisiaxit'seer�tary.� r; m E N cerdkv.tkatl Em An 5eeretary:4f thego rporation named as Lmor in the Aitgew lease, that tvho si'ugd'8'd „> Q Fe�€se.ot� behalf of e.T:��srr, was ihaic of satid.e6rpqrd:tiow,•.that m Ic€I rsgo Yvu dull sgh i far..and 3n behalf of.s,3id ctarpniatinn by;uext4c►�zka Gi its goueming . t3 r:r 7 a bcAy, 6ixd wlth,ift* use.a' �' ff:�� �A r tote jG�ZG: ------------- --------------- LO L{I) d C M' h�:l•.4 r>~xm..ya.-1,c_.m±a—.a,veil ' ,,,:.-..r.--..;.;.,-.vim'-..:--.—�r'x!!�•:...,::c:,::.:...:.x�,. .....:.� ._•---_-�--•�.. - - +-•:�:a-'•':..: - - - ...>•.::..;�:?` v•• :..<... :: -... .._;.....�.:..... +.....a2 .N:Y Ills.... }h� Packet Pg. 22 � | W at jr AM m Aft AIS Packet Pg. 23 ` I ... - ---. .,;� - -��!��, 1:'�,,,� `, �'.�--...,.--,.,.",."."r,..."��.,.....,...,...,..,..,."-,-f,.-� �-�'-"V,.. 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I Lease No. DA-04-353-ENG-1950 d r r DEPARTMENT OF THE ARMY V a� U.S. ARMY ENGINEER DISTRICT, LOS ANGELES CORPS OF ENGINEERS 0 w •a L SUPPLEMENTAL AGREEMENT No. 3 c� �a This Supplemental Agreement is entered into this day of , 2016 by and c between the City of San Bernardino, a municipal corporation of the State of California, whose z address is 300 North "D" Street, San Bernardino, California 92418 (City); the City acting in its capacity as the successor agency to the former Redevelopment Agency of the City(Successor a Agency); the United States of America(USA); and the State of California Military Department 2 L (CMD). U RECITALS 3 c WHEREAS, on or about May 9, 1952 the City and the USA entered into a written Land d E Lease (Lease) by which the City leased certain real property(Property)to the USA for military purposes; and ce a d R WHEREAS, the Property is located at 296 East Third Street in the City and is identified as Assessor's Parcel Number 0135-191-14; and 0 E L Q WHEREAS, the initial term of the Lease was 50 years, with the USA having the option a to extend the term of the Lease by an additional 50 years, said option to be exercised at least 90 v days before May 14, 2002; and 7t LO 0 N WHEREAS, after the execution of the Lease,the City and the USA executed two r Supplenlental Agreements, modifying the description of the Property; and R as WHEREAS, on various occasions since the execution of the Lease, the USA has notified E V the City of its desire to extend the Lease an additional 50 years, and the City has indicated its willingness to agree to such an extension; and M r c WHEREAS,the parties have conducted themselves since May 14, 2002 consistently with E the understanding that the term of the Lease has been extended to May 14, 2052; and o• a WHEREAS, notwithstanding the above, a diligent search of the parties' records has not u c produced evidence of a formal extension of the Lease or agreement to extend the Lease; and E L V PacW Pg. t0 Q 25 D 4- O WHEREAS, in May 2010 the City sold the Property to the former Redevelopment 0 Agency of the City (RDA); and r m WHEREAS,the Property passed to the Successor Agency by operation of law on February 1, 2012 by virtue of the dissolution of the former RDA as of that date; and `o V L WHEREAS, pursuant to state law, the Successor Agency submitted its proposed Long- Range Property Management Plan (LRPMP)to the California Department of Finance(DOF) in December 2015, addressing the disposition and use of the real properties of the former RDA; and c .2 WHEREAS, the LRPMP proposed that the Property be transferred to the City for z. governmental use; and E Q ea WHEREAS, the DOF subsequently approved the LRPMP, and thus it is anticipated that L the Property will be transferred to the City at some point, although it is not known with certainty :° when this may occur; and v r WHEREAS, the USA wishes to grant the right to use the Property to the California 3 Military Department(CMD), and E m WHEREAS, the CMD wishes to make substantial improvements to the Property to a, facilitate its planned use of the Property, using federal and state funding; and d WHEREAS, for the CMD to obtain the desired state and federal funding for the improvements, it is necessary that the parties agree to a formal extension of the Lease and o confirm the right of the CMD to occupy and use the Property; and E Q v WHEREAS, the City and Successor Agency wish to facilitate the CMD's acquisition of the right to use the Property and to facilitate the CMD's improvement of the Property. 0 N NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND UNDERTAKINGS CONTAINED HEREIN, THE PARTIES TO THIS SUPPLEMENTAL a) M AGREEMENT HEREBY AGREE AS FOLLOWS: a) c 1. Effective May 15, 2002, the term of the Lease is extended for an additional period of fifty(50) years, beginning May 15, 2002 and ending May 14, 2052. M r C 2. The CMD or such affiliated State of California agency as the CMD may designate E a2 is granted the right to use the Property and to make the proposed improvements to the Property. a 3. The parties' addresses for purposes of any notice to be given under the Lease are: d E Padot L V t0 Q Pg.2 2.A.c w City and Successor Agency: 300 North"D" Street, San Bernardino, CA 92418, attention City Manager r d USA: �E L 0 U.S. Army Corps of Engineers L Los Angeles District cc Attn: Chief Asset Management Division 915 Wilshire Blvd, Suite 930 0 Los Angeles, CA 90017 z E CMD: Q .E California Military Department 9800 Goethe Road(Box 18) Sacramento, CA 95826 r ATTN: J9,Facilities and Infrastructure, Real Estate 3 _ a� E 4. All other terms, conditions and covenants of the Lease shall remain the same and be in full force and effect. a IN WITNESS WHEREOF,the parties hereto have executed this Third Supplemental Agreement on the date first hereinabove written. 0 E L Q CITY OF SAN BERNARDINO LO N LO O N By: 0 Mark Scott, City Manager a� CITY OF SAN BERNARDINO,AS SUCCESSOR AGENCY TO THE FORMER c �o REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO a X a� M w C By: Mark Scott, Executive Director a CL _ UNITED STATES OF AMERICA E a Packet Pg.27 D 0 N d r Rf rr By: 41 a.+ CALIFORNIA MILITARY DEPARTMENT 0 w �a L By: r- 0 z E L a L W U L a.+ C N E N N L N N d J O E L Q 04 N to IV N W) O N O w d N eC d C C d w X d M w C d E O C. Q 7 r+ C 4) V N Q Packet Pg. 28 2.A.d Lipscomb, Timothy K CTR (State of California) NGCA 7rom: Sandoval Ry(Sandoval_Ry @sbcity.org) r Sent: Tuesday, May 18, 2010 8:41 AM To: Lipscomb,Timothy K CTR (State of California) NGCA o Subject: FW:Army reserve Lease (UNCLASSIFIED) Attachments: Intention Letter 3-17-09.pdf E R 0 c 0 RYAN SANDOVAL Z Real Property Specialist ', City of San Bernardino E Development Services Department Q 300 N. "D" Street, 3rd Floor `-° San Bernardino, CA 92418 0 Tel. : (909) 384-5226 Fax: (909) 384-5155 U Email: : . rilova1 1.y4S ix, i r -----Original Message----- From: Sandoval_Ry (D Sent: Monday, May 10, 2010 12:18 PM y To: 'Cutler, Mark Mr USAR 63RD RSC ARIM' (v Subject: RE: Army reserve Lease (UNCLASSIFIED) Q 4) rn Based on conversations I have had with Joyce Fredholm and my supervisor, it was the M understanding the Army Reserve wanted to extend the lease and the City honored that •� request. The recent sale to RDA was also subject to the current lease on the property so C hat also clarifies it. E Q Since RDA is now the lease holder of the lease, they can make any determination and or amendment to the lease, still subject to approval by the Mayor and Common Council. I La believe Lou is a good contact for this property and any further inquiries should be v directed to him. N_ Thanks 0 E m RYAN SANDOVAL E Real Property Specialist c City of San Bernardino N Development Services Department 300 N. "D" Street, 3rd Floor m San Bernardino, CA 92418 Tel. : (909) 384-5226 c Fax: (909) 384-5155 a Email: sandova l_t,y,,sbc i f .orc co c m -----original Message----- From: Cutler, Mark Mr USAR 63RD RSC ARIM (mailto:mark.cutler @usar.army.mil] Co Sent: Monday, May 10, 2010 11:45 AM N To: Sandoval_Ry d� Cc: Fredholm, Joyce R SPL; Shojaie, Kataneh SPL; Leialoha, Lala D Mrs USAR 63RD RSC ARIM; N Lipscomb, Timothy K CTR (State of California) NGCA Subject: RE: Army reserve Lease (UNCLASSIFIED) E lassification: UNCLASSIFIED = Caveats: FOUO Q 1 Packet Pg. 29 2A.d Ryan, Thanks. Not to be redundant, may I take this correspondence as the City agrees to our continued use of the property at 3D and Waterman? I spoke to Lou Schnepp. I indicated our plans with the Guard using the property and he voiced no objection. The lease is in the name of the US w Government and as such, there is a Federal side of the Guard/State, the 'a United States Property and Fiscal Office. This office can hold Federal Real Property and Leases that are in the name of the US Government for C7 use by the Guard. r- r- 0 Thanks for your help. Z Mr. Mark Cutler E 63D Regional Support Command Q Realty Specialist Office 650-625-9647 c Cell 650-417-4422 is U t -----Original Message----- 3 From: Sandoval_Ry [mailto:Sandoval_Ry@sbcity.org] Sent: Monday, May 10, 2010 11 :09 AM To: Cutler, Mark Mr USAR 63RD RSC ARIM m Subject: Army reserve Lease Q Mark, m R d J The only correspondence that we have in our files is the letter sent to O E the Army Reserve in regards to their intention with the property. As we Q talked about earlier, the City never executed the Supplemental Agreement the United States sent in 2003 as an agreement was not needed due to the N lease only requesting a letter indicating their desire to extend the v lease. N_ O E d The contact person I dealt with from the Army was Joyce Fredholm in E regards to any matters there might have been. _ ea E If you have any further questions or concerns, please give me a call. °1 �a 0 V c Thanks c ea 0 RYAN SANDOVAL N Real Property Specialist Q, City of San Bernardino °o Development Services Department N 300 N. "D" Street, 3rd Floor c San Bernardino, CA 92418 m E Tel. : (909) 384-5226 L) Fax: (909) 384-5155 R Email: <blockedmailto:sandoval_ry @sbcity.org> Q 2 Packet Pg. 30 2.A.d Classification: UNCLASSIFIED 2 Caveats: F'OUO L O W L R V O a.+ Z E L Q L O v L a+ 3 as E as d L cm Q d N m O J O E L Q N N_ O E N E C R N E N O C t6 C R O T O N O O O a. C d L V t0 Q 3 Packet Pg. 31 2.A.d a; DEVELOPMENT SERVICES DEPARTMENT L W 300 North"D" Street-San Bernardino • CA 92418-0001 M Planning&Building 909.384.5057 • Fax: 909.384.5080 San BPrna;&Ho Pu blic Works/Engineering 909.384.5111 • Fax: 909.384.5155 t www.sbcity.org c Z 3/17/2009 L DEPARTMENT OF THE ARMY � Los Angeles District,Corps of Engineers E L Attn: Joyce Fredholm P.O. Box 532711 U Los Angeles,CA 90053-2325 s RE: Lease No. DA-04-353-ENG-1950-Lease with the City of San Bernardino for property located at 296 E. Third Street, San Bernardino, California-Army Reserve Base. E m Dear Ms. Fredholm: a The City of San Bernardino entered into a 50 year lease with the United States of America in 1952 for N City owned property located at 296 E. Third Street, in the City of San Bernardino for an Army 4) Reserve's Headquarters. In 2003, this office received a letter indicating that the United States of Z' America would be exercising the option to extend the lease for an additional 510 year term, which 0 would terminate in 2052. E a However, the City has become aware that the Army Reserve might be leaving the property and v therefore terminating the lease with the City. Based on our recent conversations, you were unaware W of the Army Reserve's exact intentions for the property, but you would determine through your superiors and send a letter indicating those intentions to the City. 0 Regardless of the Army Reserve's intention to remain at this location and continue the lease, the City E would like to obtain the Army Reserve's authorization, as a lease tenant, for the proposed offsite E grading of the drainage channel adjacent to the north of this property relative to channel improvements by the adjacent property owner. All grading will be completed outside of the fenced `6 N area of the Army Reserve site,but a portion is within the leased area,as shown on the attached map. M E Your response indicating the Army Reserve's intentions for the above reference leased area and authorization to enter the site for grading would be appreciated. If no response is received from your o office within 30 days of the date of this letter, the City of San Bernardino will assume that it is the a Army Reserve's intention to continue the lease through its term. N c If you have any questions or concerns, please contact me at 909-384-5226 or via email at 5a11Ll0-%ai rvL'sbLitv.ure. Sincerely, N --- ° N Ryan Sandoval m Real Property Specialist E ca Q Packet Pg. 32