HomeMy WebLinkAbout7/19/2000 - STAFF REPORTS (15) DATE: July 19, 2000
TO: City Council
FROM: Director, Department of Facilities
LEASE AGREEMENT WITH PALM SPRINGS YOUTH CENTER
RECOMMENDATION:
That City Council approve a Lease Agreement between the Palm Springs Youth
Center and the City of Palm Springs for property located at 255 South El Cielo
Road and known as the old DMV building for operation of the Palm Springs Boxing
Club.
BACKGROUND:
On October 6, 1999, City Council authorized an appropriation of$50,000 from the
Amateur Softball Tournament Account of the Community Promotion Fund as a
one-time donation to the Palm Springs Youth Center(PSYC)for operation of the
Palm Springs Boxing Club (PSBC) at 255 South El Cielo Road.
Based upon Council's action, the City Manager instructed staff to develop an
agreement between the City's Parks and Recreation Division and PSYC for the
continued operation of the PSBC at the old DMV building on South El Cielo Road.
The City Manager's instruction at that time was to develop a relatively informal
agreement in the form of a Memorandum of Understanding (MOU)for a term not
to exceed three and one-half years and not to seek rental consideration from the
PSYC for use of the property. Staff proceeded in this manner.
During the review process, the City Attorney requested that the document be
modified to be a lease so that language concerning destruction of property,holding
over,and remedies could be incorporated.Although,initially,it was thought that the
FAA would not approve this, these issues were resolved.
Staff is presenting an agreement for City Council's consideration that is in a form
acceptable to the FAA,the City Attorney's office, PSP, and PSYC for operation of
the PSBC at 255 South El Cielo Road.
The content of the proposed Lease Agreement is relatively straightforward in its
requirements.The City is waiving all rental consideration for the property to PSYC.
PSYC must maintain the building,property,and other appurtenances in acceptable
condition for the term of the agreement. All operational costs for the boxing
program, including needed interior improvements,and all materials,supplies,and
services are to be at the sole expense of the PSYC for the term of the lease, and
PSYC must operate the facility as the PSBC.
/� A
LEASE AGREEMENT WITH PALM SPRINGS YOUTH CENTER
DATE: July 19, 2000
PAGE. Two
The Parks and Recreation Commission approved, in concept, the agreement as
proposed at its February 16 regularly-scheduled meeting.
OTT MIKESELL, Director
Department of Facilities
APPROVED:
City Manager
ATTACHMENTS:
1. Lease Agreement
2. Minute Order
REVIEWED OYME OFFIRARIE
BOXING CLUB LEASE AGREEMENT
This BOXING CLUB LEASE AGREEMENT("Lease")is made and entered into this day
Of .2000("Effective Date"),by and between the CITY OF PALM SPRINGS,
a California municipal corporation("City"),and PALM SPRINGS YOUTH CENTER,a California non-
profit corporation("PSYC").
RECITALS
A. The City and PSYC are mutually interested in providing quality recreational activities for the
youth of the City of Palm Springs.
B. City is the owner of that certain real property located at 255 South El Cielo Road,Palm Springs,
California,including all improvement thereon existing as of the Commencement Date("Site"),as legally
described in Exhibit"A" attached hereto.
C. The City wishes to make the Site available to PSYC and PSYC wishes to use such Site under
the terms of this Lease to fulfill the goal of providing quality recreational activities for the youth of the City
of Palm Springs.
D. The parties recognize that through a cooperative Lease between the City and PSYC for use of
the Site under the terms herein,the community will be afforded the fulfillment of a major recreational goal
for the youth in the City of Palm Springs.
AGREEMENT
1.0 LEASE AND CONDITION OF SITE.
1.1 Lease of Site. City hereby leases and demises to PSYC and PSYC hereby hires from City,for
the term and upon the conditions set forth herein,the Site,as legally described in Exhibit"A."
1.2 Condition of Site. PSYC agrees that it accepts the Site"AS-IS"and"WHERE-IS"without any
representations and warranties of any nature or kind whatsoever from City.
2.0 LEASE TERM
2.1 Lease Commencement Date. The Lease Commencement Date shall mean the date this Lease
is executed by City.
2.2 Lease Term. The Lease Term shall mean the period commencing upon the Lease
Commencement Date and continuing for five(5)years.
2.3 Delivea ofPossession. City shall tender delivery of possession ofthe Site to PSYC within five
(5)business days following the Lease Commencement Date.
/41A 42
of ?ALM SIG City of Palm Springs
u �,v
Department of Facilities
401 S.Pavilion Way ■ Palm Springs,CA 92262
Telephone:(760)3234281 ■ FAX:(160)323-8279
Cq(IF0?.
MEMORANDUM
DATE: June 2, 2000
TO: Jeri Riddle, Director of Aviation, Palm Springs International Airport
FROM: Scott Miikesell, Director, Department of Facilities
SUBJECT: PALM SPRINGS BOXING CLUB AGREEMENT
LETTER OF AGREEMENT
It is the intent of the City of Palm Springs(City),through its Parks and Recreation Division,to enter into a
cooperative lease agreement with the Palm Springs Youth Center(PSYC)for operation of the Palm Springs
Boxing Club(PSBC), located at 255 S.El Cielo Road,for a term of three and one-half(3'/z)years.
The parcel, formerly known as the Old D.M.V. Building property, is approximately 25,850 square feet in
size.The fair market value of the properly lease,as determined by Palm Springs International Airport(PSP)
staff,has been determined to be$151,222($5.89sq.ft.).Applying a capitalization rate of 8%,annual lease
payments would be$12,097.For the term of the agreement,the land rental value will be a total of$42,342.
City, in exchange for lease payments at the determined fair market value,shall oversee all tenant activities
at die PSBC to ensure that the property, its improvements and the premises are maintained in satisfactory
condition throughout the term ofCity's agreement with PSYC.City shall repair the existing roof,modernize
and upgrade the restrooms, and repair all external appurtenances, such as HVAC mechanical systems,
windows and doorways,to the satisfaction of PSP staff prior to entering into the agreement with PSYC for
operation of the PSBC and deeding the building over to PSP.Additionally,at the end of the lease tern,PSP
shall own the building at no cost to PSP.
�r
S90TT MIKESELL,Director JE#I RIDDLE,Director
Department of Facilities Department of Aviation
APPROVED:
City Manager
;7LA IV
MINUTE ORDER NO.
APPROVING A LEASE AGREEMENT BETWEEN THE PALM SPRINGS
YOUTH CENTERAND THE CITY OF PALM SPRINGS FOR PROPERTY
LOCATEDAT255 SOUTH EL CIELO ROAD AND KNOWN AS THE OLD
DMV BUILDING FOR OPERATION OF THE PALM SPRINGS BOXING
CLUB.
I HEREBY CERTIFY that this Minute Order, approving a Lease Agreement between the
Palm Springs Youth Center and the City of Palm Springs for property located at 255 S. El
Cielo Road and known as the old DMV building for operation of the Palm Springs Boxing
Club, was adopted by the City Council of the City of Palm Springs, California, in a meeting
thereof held on the 19"day of July, 2000.
BY: PATRICIA A. SANDERS
City Clerk