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HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (11) DATE: May 3, 2000 TO: City Council FROM: Assistant City Manager-Special Projects AIRPORT RENTAL AGREEMENT-WASTEWATER TREATMENT PLANT RECOMMENDATION: It is recommended that City Council approve a rental agreement between the Airport and Wastewater Treatment Plant for 24.8 acres of Airport property. BACKGROUND: At the recent budget workshop,staff presented Information concerning the use of 18 acres of Airport land for wastewater treatment purposes. A doser look, at a more recent drawing, has revealed that actually the acreage Involved is 24.8 acres. This acreage was part of the original 1949 grant of property from the federal government to the City for airport purposes. An Instrument of Release dated October 28, 1994, and Section 514 of the Federal Aviation Administration Authorization Act of 1994, released the City from all grant deed restrictions and any requirement for past fair market value rental for the Airport's property underlying the Wastewater Treatment Plant The Instrument of Release does not require payment of rent for the land use, but It does not prohibit the City from charging rental for benefit of the Airport. The attached rental agreement is between the Airport and Wastewater Treatment Plant and is modeled afterthe agreement between the Police Department and Airport for land for the Police Department equestrian facility. This document is necessary for any FAA audit to show how airport land is being used and what the compensation is. This agreement calls for$321,534 rental based on a land value of$3.71/sq.fL Attached is a Resolution for City Council consideration which approves the imposition of rental on the Wastewater Treatment Plant and authorizes Executive Department representatives to execute the agreement. ALLEN F. SMOOT,AAE JERI It. RIDDLE Assistant City Manager-Special Projects Director of Aviation APPROVED y 5 J City Manager ATTACHMENTS: OQO R 1. Resolution ., 2. Agreement RENTAL AGREEMENT THIS RENTAL AGREEMENT (this "Agreemean is made and entered into this day of .2000("Agreement Date"),by and between Palm Springs International Airport e Landlord') and the Palm Springs Wastewater Treatment Facility("Tenant'). $$CIIALR WHEREAS Landlord and Tenant wish to formalize an Agreement for the use of Landlord's property by Tenant for a portion of the Palm Springs Wastewater Treatment Facility;and WHEREAS by Instrument of Release dated October 28, 1994,and per Section 514 ofthe Federal Aviation Adm inistrationAuthorizationActof 1994,thcAirport'spropertyunderlyingthe WastewaterTreatmentPlant was released from all grant deed restrictions and any requirement for past fair market value rental was waived,and WHEREAS,the above referenced Instrument of Release does not require fair market value for the continued use;however,the City may impose such rental for the benefit of the Airport, NOW THEREFORE the parties hareto agree as follows: 1. DEMISED PREMISES: The "Demised Premises" shall refer to that certain real property (approximately 24.87 acres) located in the County of Riverside, State of California, as more particularly depicted on the Plot Plan attached as Exhibit"A". 2. USE OF DEMISED PREMISES:The Demised Premises and the facilities constructedthereon shall be utilized for governmental wastewater treatment facilities that benefit the Tenant and Landlord. 3. :The term of this Agreement shall commence as of July 1,2000 and be on a year-to-year basis with automatic renewal continuing to occur so long as Tenant makes annual rental payments. 4. RENTAL:Tenant shall pay to Landlord prior to June 30,base annual rental of$321,534. (For base rental calculation,see Exhibit"B".) Every fifthyearanniversaryofthedatethisAgrocmentwas executed,the rentalrate shall be adjusted In proportion to changes in the ConsumerPrice Index(All Urban Consumes(all items),for the Los Angeles-Anaheim Riverside Metropolitan Ares, 1992-84= 100). Every tenth anniversary,a letter appraisal shall be acquired and said appraisal shall be basis for additional adjustment to the rental role. 5. TERhUNATION:Either party may terminatethis rental agmcmem by providing 180 days notice m writing to the other party. 6. )JON-DISCRIMINATION&FAA RR UIRED CLAUSES: (a) Tenant for himself,his heirs,personal representatives,succwsors in interest,and assigns, as apart ofthe considerationhereof,does hereby covenantand agree"as a covenamruaning with the land"that in the event facilities am constructed,maintained or otherwise operated on the said property described in the lease for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits,the Tenant shall mainlain and operate such facilities and services in compliance with all otherrequirements impose dpursumdtoTitle49,Code ofFederalRegulations DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI ofthe Civil Rights Act of 1964,and as said Regulations may be amended. (b) The Tenant for himself,his personal representatives,successors in interest,and assigns,as a part of the consideration hereof,does hereby covenant and agree"as a covenant running with the land"that:(1)no person on the grounds of race,color,or national origin shall be excluded from participation in, denied the benefits of or be otherwise subject to discrimination in the use of said facilities,(2)that in the construction of any improvements on,over,or under such land and the furnishing ofservicesthereon,no person on the grounds ofrace,color,or national origin shall be excluded from participation in,denied the benefits of,or otherwise be subject to discrimination,(3)that the Tenant shall use the premises in compliancewith all other requirements imposed by or pursuantto Title 49,Code ofFederal Regulations Department of Transportation, Subtitle A, Office of the Secretary Part 21, nondiscrimination in Federally-Assisted Programs of the Department of Transportation- Effectuation of Title VI of the Civil Rights Act of 1964,and as said Regulations may be amended. (c) That in the event of breach ofany ofthe above nondisariminationcovenants,Landlord shall have the right to terminate the lease,and to reenter and repossess said land and the facilities thereon and hold the some as if said lease had never been made or issued This provision does not become effective until the procedures of 49 CPT Part 21 are followed and completed 'including expiration of appeal rights. (d) Tenant shall famish its accommodations and/or services on a fair,equal and not unjustly discriminatory basis to all users thereof and it shall charge fair,reasonable and not unjustly discriminatory prices for each unit or services,provided that the Tenant may be allowed to make reasonable and nondiscriminatory discounts,rebates or other similar type of price reductions to volume purchasers. (a) Non-compliance with Provision 4 above shall constitute a material breach thereofand in the event ofsuchnon-complianceby the Landlord shall have the righttoterminatethis]ease and the estate hereby created without I iability therefore or at the election ofthe Landlord or the United States, either or both said Governments shall have the right to judicially enforce provisions. (f) Tenant agrees that it shall insert the above five provisions in any sublease of contract by which said tenant grants a right or privilege to any person,form or corporation to render accommodations and/or services to the public on the premises herein leased. 4A©A3 (g) The Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart 13,to insure that no person shall on the round of race,tread,color, national origin,or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The Tenant assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this Subpart. The tenant assures that it will require that its covered sub. organizations provide assurance to the Tenant that they similarlywill undertake affirmative action programs and that they will require assurances from their sub-organizations, as required by 14 CFR Part 152,Subpart E to the same effort. (h) The Landlordreservas the righttD Anther develop or improvethe landing areaoftheAfiport as it sees fit,regardless of the desires or view of the Tenant and without interference or hindrance. (i) The Landlord reserves the right, but shall not be obligated to the Tenant to maintain and keep inrepairthe landingareaoftheairportandall publically-ownedfacilitiesofthe airport, together with the right to direct and control all activities of the Tenant in this regard. G) The Lease shall be subordinate to the provisions and requirement of any existing or Um agreement between the Landlord and the United States, relative to the development, operation or maintenance of the airport. (k) There is hereby reserved to the Landlard,its successors and assigns,for the use and benefit of the public,a right offlight for the passage of aircraft in the airspace above the surface of the prcmises herein(leased,licensed,permitted). This public tight of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation of flight through the said airspace or landing at,taking off fium or operation on the Palm Springs International Airport (1) Tenant agrees to comply with the notification and review requirements coveredin Part 77 ofthe Federal Aviation Regulation in the event future construction of a building is planned for the leased premises,or in the event of any planned modification or alteration of any present of future building or structure situated on the leased premises. (m) The Tenant,by accepting this,expressly agrees for itself,its successors and assigns that it will not erectnor ponnitthe erectionofany stnaotureorobject,norpermitthe growth ofany tree on the land leased hereunder above the mean sea level elevation of 530 feet Landlord reserves the right to enter upon the land leased,hereunder and to remove the offending structure or object and cut the offending tree,all of which shall be at the expanse of the Tenant (n) The Tenant,by accepting this Lease,agrees for itself its successors and assigns that it will no make use ofthe lease premises in any mannerwhich might fi terferewith the landing and taking off of aircraft from Patin Springs Tntornational Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached,the owner reserves the rightto enter upon the premises here leased,and cause the abatement of such interference atthe expense of the Tenant (o) It is understood and agreed that nothing herein contained shall be construed to grant or OV44 authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958(49 U.S.C. 1349a). (p) The lease,and all the provisions hereof,shall be subjeetto whatever rightthe United States Government now has or in the future may have or acquire,affecting the control,operation regulationandtal ingovorofsaidairportortheexclusiveornon-exclusive use ofthe airport by the United States during the time of war or national emergency. 7. MAINTENANCE AND REPAIRS:Tenant shall atalltimes during the term hereof,and at Tenant's sole cost and expense,keep,maintain and repair the Demised Premi sea and other improvements upon the dery ised Premises in good and sanitary order,condition and repair. 8. Tenant may tiny out capital improvements necessary to develop the Wastewater Treatment Facility. IN WITNESS WHULEOF,the parties have duly executed this Rental Agreement together with the heroin referred to Exhibits which are attached hereto,on the day and year first above written in Palm Springs, California. PALM SPRINGS INTERNATIONAL AIRPORT PALM SPRIIVGS WASTEWATER FACILITY By. By: Jeri L.Riddle Allen F. Smoot,AAE Director of Aviation Assistant City Manager-Special Projects "LANDLORD" "TENANT" N 092Yx?"E Q640.7/' N 07,"52 E�904 CIELO R 0 A D fkk % ro % ma i tic � PIS O/'/4 E / 2636.75' I nl 659.20 A' 9JlV C( (/tOIL. --- J (' Illi i 1 3C./B � 1 f�---- SANTA • 46• 658.46' CRUz 7b ` s8.6.3 r_ , I{t� — _� eZi LO n E tL. NJ 11, Iwl r i=�1 r z cv ro r I I �.cr:� Tics -'•' _'. � '-1-�� I ���_� \\�� L- � II �-- _ __ 2' - - VELLA RD. -49 637013' 657.7P' —— 1 DAD 6I �� tntnu� ! ��a �Drl, f I I oi=N F,=IT'B' FAIR MARKET L 24.87 acres of Airport property occupied by Wastewater Treatment Facilities. Parcel 5 &: 24.87 acres x 43,560 sq.ft.- 1,083,337 sq.ft. Parcel Value: 1,083,337 sq.ft.x$3.71/sq.ft.-$4,019,180 Base Rental: $4,019,180(value)x 8%capitalization..§j2jVA E[gRft Value Establishment QQMRMbIe Parcels Mathews @ E.Palm Canyon $5.20/sq.A. Vella @ Ramon $3.03/sq.ft. Bast Horizon Road(Cathedral City) $2.84/sqA Avenida Los Ninos®Aliso(Cathedral City) $4.71.9q.ft. Farrell Airport Acquisition $3.32/sq.ft. First City Properties $3.20/sq.ft. Average Value $3.71&q.ft. ao �? RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,APPROVING THE IMPOSITION OF RENTAL CHARGES UPON THE WASTEWATER TREATMENT PLANT FOR THE USE OF AIRPORT PROPERTY AND AUTHORIZING DEPARTMENT REPRESENTATIVES TO EXECUTE THE RENTAL AGREEMENT. WHEREAS 24.8 acres ofAirport property is being utilized by the WastewaterTrestment Plant for treatment facilities; and WHEREAS by Instrument of Release dated October 28, 1994, and per Section 514 of the Federal Aviation Administration Authorization Act of 1994, the Airports property underlying the Wastewater Treatment Plant was released from all gram deed restrictions and any requirement for past fair market value rental was waived; and WHEREAS the above referenced Instrument of Release does not require fair market value for the continued use;however,the City may impose such rental for the benefit of the Airport, and WHEREAS the City Council desires to impose rental charges on the Wastewater Treatment Plant for use of Airport property for the benefit of the Airport, NOW THEREFORE BE IT RESOLVED as follows: 1. That the imposition of land rental on the Wastewater Treatment Plant by the Palm Springs International Airport at a base rental of$321,534 for 24.8 acres is hereby approved. 2. That the Director of Aviation on behalf of the Airport,and the Assistant City Manager- Special Projects on behalf of the WastewaterTreatmem Plant,are hereby authorized to execute said Airport Rental Agreement to memorialize this transaction. ADOPTED this day of 2000. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED AS TO FORM