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HomeMy WebLinkAbout18451 - RESOLUTIONS - 8/3/1994 RESOLUTION NO. 18451 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A STANDARD FORM LEASE WITH FANTASIA COACHES FOR THE OLD BIRD HANGAR UNDER SPECIFIED CONDITIONS. WHEREAS, the old Bird Hangar, built in the early 1940's is in a state of repair that no longer allows it to function as a hangar; and WHEREAS, Fantasia Coaches has approached the Airport to lease the facility to be utilized as a bus refurbishing to motor home facility; and WHEREAS, this interim use will create revenue for the Airport from a facility that would otherwise be demolished as it can no long serve an aviation use, NOW THEREFORE BE IT RESOLVED as follows: Section 1 . The City Manager is hereby authorized to execute a Standard Form Lease in a form approved by the City Attorney. The Standard Form includes the requirement that Lessee perform all maintenance at Lessee's expense; that Lessee bear the cost of all improvements and such improvements as approved by City; that Lessee provide appropriate insurance, and that all subleases and assignments are subject to City approval and rent adjustment. In addition, the lease with Fantasia Coaches shall contain the following minimums: ' A. Term - July 31, 2006. B. Building and site as is. C. Tenant to repair doors to meet their access needs. D. Tenant pays all utilities. E. Rent based in $3000 per month for first 5 years, then adjust per CPI, not to exceed 25% (adjust every 5 years). F. Rental to be reduced to $1500 per month for first 24 months -- credit for tenant repairs. G. Realty commission not to exceed $15,500. Section 2. The City Council finds that the premises are not needed for any current need of the City and are not leased for any period of time beyond the estimated need of City. Moreover, the premises are leased at fair market value at the highest and best use, considering the nature of the rental and the obsolescence of the improvements. Section 3. The City Manager is hereby authorized to agree to other terms so long as the overall dollar value is not below what would be developed from the above conditions. ADOPTED this 3rd day of August 1994. ' AYES: Members Hodges, KTeindienst, Lyons, Reller-Spurgin and Mayor Maryanov NOES: None ABSENT: None ATTEST: IT AL PSM R N CALIFORNIA C'f,y Clerk y anager REVIEWED & APPROVED:Qx{_