HomeMy WebLinkAbout11/23/1999 - STAFF REPORTS i
DATE: November 23, 1999
TO: City Council and Community Redevelopment Agency
FROM: Dallas J. Flicek, Interim City Manager/Interim Executive Director
11011
FIRST AMENDMENT TO LEASE AGREEMENT NO.S443-BETWEEN THE AGENCY AND
SANTIAGO SUNRISE VILLAGE
RECOMMENDATION: t'
It is recommended that the Community Redevelopment Agency of the City of Palm
ase Springs approve the First Amendment to Le Agreement No. by and between the
Agency and Santiago Sunrise Village, and that the City Council concur in the action of the
Agency approving the amendment.
BACKGROUND:
As described in the recitals in the attached agreement, the City of Palm Springs and
Santiago Corporation entered into a certain lease agreement in 1987, whereby Santiago
leased certain real property from the City for the purpose of providing a low/moderate
income mobile home park for the community.
Subsequently, the City transferred the real property, subject to the lease, to the
Community Redevelopment Agency, and Santiago assigned its interest in the lease to
Santiago Sunrise Village,a Limited Partnership. Over a number of years,the parties have
been discussing, negotiating, and arguing over a number of issues, which are now being
resolved in this First Amendment to the original lease agreement.
Those issues, as more clearly identified in the attached amendment, are as follows:
1. Clarification of the premises included in the lease, and a waiver of lessee's
claim against lessor for payment of property taxes on property not included
in the original lease.
2. Clarification of past due deferred development fees which the lessee held
back from the City, as the original lessor, due to its claim that the City
allowed a neighboring developer to remove and/or destroy a steel
windbreak fence, irrigation and landscaping installed by lessee without the
lessee's permission.
3. The parties have agreed, following a number of years of debate over this
issue, that for the payment of the originally past due fees to the City by the
lessee, in the amount of$64,607.72 (as identified in#2 above), and the
City waiving its accrued interest, the lessee will release the City from its
claims and claimed accrued interest thereon. Both parties are, therefore,
waiving approximately $70,000 worth of charges against each other.
/4
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Page 2
4. The addition of a subsection to the lease agreement providing for interest
and penalties on late payments, not previously included in the original
lease.
5. Clarifying under "Assignment and Subletting," that the lessee will not
assign the lease or sublet the premises without the express prior consent of
lessor, which consent would not be unreasonably withheld.
As mentioned previously, this resolves a number of disputes that have been around since
the early 1990's, almost resolved in 1996, and finally resolved this year. The resolution
of these issues was made possible by the lessee requiring a new estoppel agreement for its
lender as a result of the refinancing of the project. The City and the Agency were willing
to sign the estoppel agreement only upon the lessee's approval of this First Amendment.
Attached is a Resolution of the Agency approving the First Amendment to Lease
Agreement No.4443- Also attached is a Minute Order of the City Council of the City of
Palm Springs 2oncurring with the action of the Agency in approving this First
Amendment.
Dallas J. Flicek
Interim City Manager
Interim Executive Director
ATTACHMENTS:
1. First Amendment to Lease Agreement No. 2443
2. Resolution of the Community Redevelopment Agency
3. Minute Order of the City Council
FIRST AMENDMENT TO LEASE AGREEMENT NO 2443
3tot7
THIS FIRST AMENDMENT TO LEASE AGREEMENT NO. 3443 ("Amendment") is
entered into this _ day of 1999 ("Effective Date") by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, a public body, corporate and politic ("Lessor"), and SANTIAGO SUNRISE
VILLAGE, a California limited partnership ("Lessee").
RECITALS
A. The City of Palm Springs, a municipal corporation ("City"), and Santiago
Corporation, a California corporation ("Santiago"), entered into that certain Lease Agreement
No. 2443 dated June 29, 1987 and recorded on June 30, 1987 as Instrument No. 185905 in the
Official Records of the Riverside County Recorder ("Original Lease") pursuant to which City
leased to Santiago certain real property more particularly described therein upon the terms and
conditions set forth therein.
B. Subsequent to the execution of the Original Lease, (i) City transferred the real
property subject to the Lease and assigned the Lease to Lessor; and (ii) Santiago assigned its
interest under the Original Lease to Lessee and Lessee assumed all of Santiago's duties and
obligations under the Original Lease.
C. Lessor and Lessee wish to amend the terms of the Original Lease as more
particularly set forth herein. The Original Lease, as amended by this Amendment, shall
hereinafter be referred to as the "Lease".
D. Lessor and Lessee wish to clarify, pursuant to the terms of this Amendment, the
parties' rights with respect to a certain portion of Lessor's real property referred to as Parcel
2 herein, which Lessee has used in connection with its operations upon the Premises, although
such Parcel 2 was not included as part of the Premises under the Original Lease.
E. Lessor and Lessee wish to settle Lessee's obligation to pay certain development
fees under the Original Lease, pursuant to the terms of this Amendment.
F. Any capitalized terms not defined herein shall have the meanings ascribed to them
in the Original Lease.
NOW, THEREFORE, the parties hereto agree as follows:
1. Parcel 2. The parties acknowledge and agree to the following terms regarding
an approximate one and sixty-eight hundredths (1.68) acre parcel of real property, located
immediately adjacent to the Premises, and specifically described as "Parcel 2" on Exhibit "A"
attached hereto and incorporated herein by reference and depicted on Exhibit "B" ("Parcel 2").
The parties acknowledge that before the date of this Amendment, Lessee paid certain taxes upon
Parcel 2 while Lessee used such Parcel 2 in conjunction with its operations upon the Premises.
F81\383\014084-0003\33335 3 all/17/99 /11 3
MY
Lessor and Lessee acknowledge that Lessee's use of Parcel 2 was pursuant to specific consent
from Lessor for the limited time while Lessee paid property taxes thereon. From and after the
date of this Amendment, Lessee shall no longer be entitled to use any portion of Parcel 2,
without the specific written consent of Lessor. Lessor agrees to waive any right to rental
payments in connection with Lessee's prior use of Parcel 2, and Lessee agrees to waive any
right to reimbursement or compensation for payment of any taxes upon Parcel 2 during Lessee's
prior use of Parcel 2, as more specifically set forth under Section 3 of this Amendment.
2. Payment of Past Due Fees. Pursuant to Section 28 of the Original Lease, Lessee
agreed to pay the City for certain deferred development fees plus interest. Lessor and Lessee
hereby acknowledge that Lessee owes the City the sum of SIXTY-FOUR THOUSAND SIX
HUNDRED SEVEN AND 00/100 DOLLARS ($64,607.72) ("Fees") plus accrued interest
("Accrued Interest"). Concurrently with the execution of this Amendment, Lessee shall pay the
City in funds satisfactory to the City, the Fees. Provided Lessee complies with the terms of this
Amendment, Lessee shall not be required to pay to City or Lessor any portion of the Accrued
Interest.
3. Release of Claims. Prior to the execution of this Amendment, Lessee has made
certain claims against Lessor for the costs expended by Lessee to maintain certain real property,
which, prior to the date of this Amendment, the parties had contemplated to be added to the
Premises and alleged damages suffered to the fence and certain trees on the Premises by Lessor
or its agents (collectively, "Claims"). In consideration for the City waiving its right to collect
the Accrued Interest pursuant to Section 2 above, Lessee hereby waives, releases, remises,
acquits and forever discharges Lessor, City and their respective officers, employees, and agents
of and from any and all actions, suits, legal or administrative orders or proceedings, demands,
actual damages, punitive damages, losses, costs, liabilities and expenses, which concern or in
any way relate to any of the Claims.
Lessee further waives, releases, remises, acquits and forever discharges Lessor, City and
their respective officers, employees, and agents of and from any and all actions, suits, legal or
administrative orders or proceedings, demands, actual damages, punitive damages, losses, costs,
liabilities and expenses, which concern or in any way relate to any payment by Lessee of taxes
of any kind upon the real property referred to as "Parcel No. 2" as specifically described on
Exhibit "A" and depicted on Exhibit "B" before the Effective Date of this Amendment.
4. Interest on Late Payments- Late Char. The following shall be added as
subsections 3(g) and (h) of the Lease:
"(h) Any sum to be paid pursuant to the terms of this Lease not paid within thirty
(30) days of the date due shall bear interest from and after the due date until paid at a
rate equal to three percent (3%) over the reference rate being charged by Bank of
America, N.A. from time to time during such period so long as the rate does not exceed
the maximum non-usurious rate permitted by law in which case interest shall be at the
maximum non-usurious rate allowed by law at the time the sum became due.
"(i) Lessee hereby acknowledges that late payment by Lessee to Lessor of rental
or other sums due hereunder will cause Lessor to incur costs not contemplated by this
383/0140844)003/33335.5 _z_
Lease, the exact amount of which is extremely difficult to ascertain. Such costs include,
but are not limited to, processing and accounting charges. Accordingly, any payment of
any sum to be paid by Lessee not paid within ten (10) days of its due date shall be
subject to a five percent (5%) late charge. Lessor and Lessee agree that this late charge
represents a reasonable estimate of such costs and expenses and is fair compensation to
Lessor for its loss suffered by such late payment by Lessee."
5. Assignment and Subletting. Subsection 22(a) of the Lease shall be deleted in its
entirety and replaced by the following:
"(a) The privileges contained herein are exclusive. Lessee agrees that it will
not assign this Lease or sublet the Premises or any portion thereof (except to space
tenants in the mobilehome park) without the express prior written consent of Lessor,
which consent shall not be unreasonably withheld. Any purported assignment or
subletting without the consent of Lessor shall be void. Lessor shall be the sole judge as
to the reliability, capability, character and desirability of prospective lessees or
sublessees."
6. Full Force and Effect. Except as set forth herein, the terms and provisions of the
Original Lease shall remain in full force and effect.
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3MI4084003M335.5 _3_
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IN WITNESS WHEREOF, this First Amendment to Lease Agreement was executed as
Of the date first written above.
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, a public body,
ATTEST: corporate and politic
By: By:
Assistant Secretary Executive Director
REVIEWED AND APPROVED
RUTAN & TUCKER
By:
AgebQyflounwi
SANTIAGO SE VILLAGE, a
C o 'red partnership
By:
Richard tSimonian,
Gene# Partner
By:
5#64T)/CCE 316A)/A A)
Print name and tine
(Corporations require two signatures,one from each of the following: 1. Chairman of Board,President, any
Vitt President;AND 2. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,or Chief Financial Officer.)
[END OF SIGNATURES]
M1014084•0003M333.5 -4-
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File No. R 92-034
EXHIBIT "A"
LWAL MCi21M OF THE PREUBES
All of Lot'1 of that Map entitled `Tract No. 17642-1 being a subdivision of a portion of
the southeast quarter of Section 35,Township 3 South,Range 4 Fast, San Bernardino Meridian,
also shown on Record of Survey Map Book 65 at page 33;official reds ofltiverside County,
State of California" filed on the 18th day of November 1981 in Map Book 122 at Pages 88
through 90, official Records of River& County, California.
(AFN 669-500-part of 001) ,
PARCEL 2:
Being a part of Lot C of that Map entitled "Track No. 1.7642-1 being a subdivision of a
portion of the southeast quarter of Section 35,Township 3 South,Range 4 East,San Bernardino
Meridian, also shown on Record of Survey 114ap Book 65 at page 33, official records of
Riverside County, State of California" filed on the 18th day of November 1981 in Map Book
122 at Pages 88 through 90, official Records of Riverside County, California and more
particularly described as follows:
Beginning at die southwest corner of Lot C;Thence northerly along,the west line
of said Lot C N 00" 15' 14" E 1.467.00 feet: Thence S 99" "1 28" E 50 fed
to the northwest corner of Lot 1 of said Tract No. 17642-1; Then= southerly
along the line between said Lot C and Lot 1 of Tract NO. 17642-1,S 00" 150 14"
W 1,4ti7.00 feet to the southwest omen of said Lot 1, said cornea being also die
southeast comer of said Lot C; Thence westerly along the south line of said Lot
C N 990 46' 28" W 50 feet to the point of beginning.
(APN 669-Soo-part of 001)
EXHIBIT "A"
TO FIRST AMEND /M1'.NT
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RESOLUTION NO. 1089
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OP PALM SPRINGS,CALIFORNIA,APPROVING
FIRST AMENDMENT TO LEASE AGREEMENT NOIM
BETWEEN THE AGENCY AND SANTIAGO SUNRISE
VILLAGE.
WHEREAS, the Community Redevelopment Agency of the City of Patin Springs
("Agency"), and Santiago Sunrise Village, a California Limited Partnership, as lessor and lessee
respectively, desire to amend said lease.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of
the City of Palm Springs,that the First Amendment to Lease Agreement No jW 7 by and between
the Community Redevelopment Agency of the City of Palm Springs and Santiago Sunrise Village
is hereby approved.
ADOPTED this 23rd day of November 1999.
AYES: Members Hodges, Oden, Reller-Spurgin and Chairman Kleindienst
NOES: None
ABSENT: Member Barnes
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By
Assistant Secretary _ Chairman
M \
REVIEWED& APPROVED AS TO FOR le
I�
MINUTE ORDER NO. 3S,
CONCURRING WITH THE ACTION OF THE
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS IN APPROVING
A FIRST AMENDMENT TO LEASE
AGREEMENT NO. t7.
I HEREBY CERTIFY that this Minute Order, concurring with the action of the
Community Redevelopment Agency of the City of Patin Springs in approving a
First Amendment to Lease Agreement No.3bX7, was adopted by the City Council
of the City of Palm Springs, California, in a meeting thereof held on the 23rd day
of November, 1999.
PATRICIA A. SANDERS
City Clerk
DOC N 1000—MMS702
22/07/1999 00:00A Fee:NC
Page 1 of 9
Recorded in Official Records
County of Riverside
Gary L. Orso
Assessor, County Clark i Recorder
RECORDING REQUESTED Ex: III�II�II�IIIII�II�IIIIIa�IIIiIIIUaII
CM OF PALM SPRINGS
AND WHEN RECORDED MAIL TO:
City of Palm Springs M S u IM mR a Peon ftc w we.
3200 E. Taltquitz Canyon Way
Palm Springs, CA 92263
Attn: City Clerk 1,
A R L COPY IONR RlIRID It11R
SPACE ABOVE FOR RECORDER ONLY
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P'rsr Amnn,imenr m i wage AnrMmwN Y244;/Mrnnl Amnrvlmenr m narrw^
Title of Document
THIS FQ
ECO
USE ONLY
THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
G%RECORDERRECORD.RBQ
Santiago Sunrise Village
1st Amend to Lease - Sec 35
Agr 2443
AGREEMENT #3617 (A360C)
M06538, 11-23-99 related
FIRST AMENDMENT TO LEASE AGREEMENT lw mwr - --- -- -
3`�3619
THIS FIRST�A ENDM NTT LEASE AGREEMENT NO. ("Amendment") is
entered into this, y of o .�e ti 1999 ("Effective Date") by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, a public body, corporate and politic ("Lessor"), and SANTIAGO SUNRISE
VILLAGE, a California limited partnership ("Lessee").
RECITALS
A. The City of Palm Springs, a municipal corporation ("City"), and Santiago
Corporation, a California corporation ("Santiago"), entered into that certain Lease Agreement
No. 2443 dated June 29, 1987 and recorded on June 30, 1987 as Instrument No. 185905 in the
Official Records of the Riverside County Recorder ("Original Lease") pursuant to which City
leased to Santiago certain real property more particularly described therein upon the terms and
conditions set forth therein.
B. Subsequent to the execution of the Original Lease, (i) City transferred the real
property subject to the Lease and assigned the Lease to Lessor; and (ii) Santiago assigned its
interest under the Original Lease to Lessee and Lessee assumed all of Santiago's duties and
obligations under the Original Lease.
C. Lessor and Lessee wish to amend the terms of the Original Lease as more
particularly set forth herein. The Original Lease, as amended by this Amendment, shall
hereinafter be referred to as the "Lease".
D. Lessor and Lessee wish to clarify, pursuant to the terms of this Amendment, the
parties' rights with respect to a certain portion of Lessor's real property referred to as Parcel
2 herein, which Lessee has used in connection with its operations upon the Premises, although
such Parcel 2 was not included as part of the Premises under the Original Lease.
E. Lessor and Lessee wish to settle Lessee's obligation to pay certain development
fees under the Original Lease, pursuant to the terms of this Amendment.
F. Any capitalized terms not defined herein shall have the meanings ascribed to them
in the Original Lease.
NOW, THEREFORE, the parties hereto agree as follows:
1. Parcel 2. The parties acknowledge and agree to the following terms regarding
an approximate one and sixty-eight hundredths (1.68) acre parcel of real property, located
immediately adjacent to the Premises, and specifically described as "Parcel 2" on Exhibit "A"
attached hereto and incorporated herein by reference and depicted on Exhibit "B" ("Parcel 2").
The parties acknowledge that before the date of this Amendment, Lessee paid certain taxes upon
Parcel 2 while Lessee used such Parcel 2 in conjunction with its operations upon the Premises.
F81\383\014 084-0003\33]35.3 a11/17/95 IIIIIII IIIIII IIIII IIIIII II IIIIIIII IIIII III III�IIII IIII 1 /-
Santiago Sunrise Village
1st Amend To Lease - Sec 35
Agr 2443
AGREEMENT B360C (A3617)
R1089, 11-23-99 related
FIRST AMENDMENT TO LEASE AGREEMENT N(r--�—-- —
g��96 f l
THIS FIRSTA END NT LEASE AGREEMENT NO.� ("Amendment") is
entered into this y of qU.¢a � 1999 ("Effective Date") by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, a public body, corporate and politic ("Lessor"), and SANTIAGO SUNRISE
VILLAGE, a California limited partnership ("Lessee").
RECITALS
A. The City of Palm Springs, a municipal corporation ("City"), and Santiago
Corporation, a California corporation ("Santiago"), entered into that certain Lease Agreement
No. 2443 dated June 29, 1987 and recorded on June 30, 1987 as Instrument No. 185905 in the
Official Records of the Riverside County Recorder ("Original Lease") pursuant to which City
leased to Santiago certain real property more particularly described therein upon the terms and
conditions set forth therein.
B. Subsequent to the execution of the Original Lease, (i) City transferred the real
Property subject to the Lease and assigned the Lease to Lessor; and (ii) Santiago assigned its
interest under the Original Lease to Lessee and Lessee assumed all of Santiago's duties and
obligations under the Original Lease.
C. Lessor and Lessee wish to amend the terms of the Original Lease as more
Particularly set forth herein. The Original Lease, as amended by this Amendment, shall
hereinafter be referred to as the "Lease".
D. Lessor and Lessee wish to clarify, pursuant to the terms of this Amendment, the
Parties' rights with respect to a certain portion of Lessor's real property referred to as Parcel
2 herein, which Lessee has used in connection with its operations upon the Premises, although
such Parcel 2 was not included as part of the Premises under the Original Lease.
E. Lessor and Lessee wish to settle Lessee's obligation to pay certain development
fees under the Original Lease, pursuant to the terms of this Amendment.
F. Any capitalized terms not defined herein shall have the meanings ascribed to them
in the Original Lease.
NOW, THEREFORE, the parties hereto agree as follows:
1. Parcel 2. The parties acknowledge and agree to the following terms regarding
an approximate one and sixty-eight hundredths (1.68) acre parcel of real property, located
immediately adjacent to the Premises, and specifically described as "Parcel 2" on Exhibit "A"
attached hereto and incorporated herein by reference and depicted on Exhibit "B" ("Parcel 2").
The parties acknowledge that before the date of this Amendment, Lessee paid certain taxes upon
Parcel 2 while Lessee used such Parcel 2 in conjunction with its operations upon the Premises.
BSl\383\019004-0003\33335 3 all/17/9f 1111111111111111111111111111111111111111111111111 ,vim