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Home My WebLink About3/21/2001 - STAFF REPORTS (4) DATE: March 21, 2001 TO: City Council FROM: Assistant Director of Aviation, via Interim Director of Aviation SUPPLEMENTAL SPACE USE AGREEMENT RECOMMENDATION: That the City Council approve a supplemental space use agreement between the City of Palm Springs and the Paradies Shops, LLC. SUMMARY: Airport staff has agreed to lease additional office space to the Paradies Shops in the baggage claim area under a supplemental space use agreement. BACKGROUND: Representatives from the Paradies Shops, LLC approached Airport staff about acquiring additional office space. The previous concession operator had leased an office in the baggage claim area under supplemental space use agreement. As this office was available, staff agreed to lease the office for a two (2) year term with three (3) one year renewal options. The rental rate for Suite A111.1 is $25.21 per square foot per annum or$239.50 per month for 114 square feet of office space. Annually, we will receive $2,874.00 for lease of this space. APPROVED: RY I I ALLEN F. SMOOT, A.A.E. Assis Ire r of Aviation Interim Director of Aviation APPRO EVEV D� City Manager Attachment: 1. Minute Order 2. Supplemental Space Use Agreement N:\WordPerfect\City_Council\parad ies_s u ppl_ag r_032102.wpd REVIEWED BY 77. OF FINANCE AA SUPPLEMENTAL SPACE USE AGREEMENT THIS SUPPLEMENTAL SPACE AND USE AGREEMENT, made and entered into as of the day of 2001, by and between the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California, hereinafter referred to as "CITY' and PARADIES SHOPS, LLC, a Georgia limited liability company a subsidiary of THE PARADIES SHOPS, a Georgia Corporation, hereinafter referred to as "TENANT'. WITNESSETH: WHEREAS, CITY owns and operates an airport known as the Palm Springs International Airport, situated in the City of Palm Springs, County of Riverside, State of California, hereinafter referred to as `AIRPORT'; and WHEREAS, TENANT is operating at the Airport under separate agreement, "Lease Agreement for Concessions", and wishes to utilize terminal office space at the Airport; and NOW, THEREFORE, for and in consideration of the premises, and of the covenants and conditions hereinafter contained, to be kept and performed, the parties hereto do agree as follows: ARTICLE I PREMISES RIGHTS AND PRIVEGES CITY hereby offers to TENANT and TENANT takes from CITY, for its exclusive use except as otherwise noted, certain premises located in the terminal building, consisting more particularly of the following, to-wit: Baggage Claim wing office space (Suite A111.1) containing 114 square feet as designated on Exhibit "A", attached hereto and made a part of this Agreement. ARTICLE II TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on March 1. 2001 and terminating on February 28 2003. TENANT is given the option(s) to extend the term of this agreement for Three (3) one-year options by giving notice of exercise of the option ('option notice') to CITY at least one hundred twenty (120) days but not more than six (6) months before the expiration of the initial term or extended term properly exercised hereunder; provided that, if TENANT is in default on the date of giving the option notice, the option notice shall be totally ineffective or, if TENANT is in default on the date the extended term is to commence, the extended term shall not commence and this Lease shall expire at the end of the initial term or properly exercised extended term. ARTICLE III RENTALS FEES AND OTHER CHARGES The rental rate for Suite A111.1 shall be computed at the rate of$25.21 per square foot per annum and shall be $239.50 per month, payable by TENANT to CITY, beginning on March 1. 2001 and the first day of each month thereafter. Rental adjustments shall be based on current Palm Springs Comprehensive Fee schedule for Baggage Claim Office/Counter Space. 4AA42 ARTICLE IV IMPROVEMENTS AND ALTERATIONS No improvements, alterations or additions; other than those heretofore installed or approved by CITY, shall be made into upon the demised premises by TENANT without the written consent of CITY being first obtained. ARTICLE V MAINTENANCE AND OPERATION Section 1. Utilities: CITY shall maintain heating and air conditioning systems in good condition and repair. Section 2. Repair and Maintenance: TENANT shall, at its sole cost and expense, maintain the demised premises, including all interior improvements, constructed or installed by CITY or TENANT therein, except heating and air conditioning ducts and systems and utility maintenance, and shall keep said premises in good condition and repair in a neat, clean and sanitary condition, and shall furnish janitorial service. Section 3. Trash Garbage and Other Refuse TENANT shall provide a complete and proper arrangement for the adequate, sanitary handling and disposal, away from the Airport of all trash, garbage and other refuse caused as a result of the operation of its business. TENANT shall provide and use suitable, covered metal receptacles for all garbage, trash and other refuse on or in connection with the demised premises. Piling of boxes, cartons, barrels or other similar items in a n unsightly or unsafe manner, on or about the demised premises, is forbidden. ARTICLE VI INSURANCE It is agreed by the parties that the broad insurance provisions provided under the TENANT's Lease Agreement For Concessions; a separate agreement would also apply to the additional space provided for herein. ARTICLE VII MISCELLANEOUS Section 1. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Section 2. The mailing address of CITY shall be P.O. Box 2743, Palm Springs, California, 92263-2743, until written notice of change thereof has been given to Lessee. Section 3. The mailing address of TENANT shall be The Paradies Shops, Inc., 5950 Fulton Industrial Blvd. S.W., Atlanta, Georgia 30336. Section 4. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized toe execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. aA3 IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on this day of 12001. ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk City Manager APPROVED AS TO FORM: City Attorney CONTRACTOR: c ) Para of li_.9 J hC'e5-1 —� (Check one: _ individual _ partnership corporation) (NOTARIZED) By. ig ture 1 1M DIG D(CL50n tlotaryp IdingCounty,Georgia print name and title My ission EV fires July 20,2002 (NOTARIZED) By. // j ur'44;�2signatur/eG� Toy, ff gr-e_ f� /7550G1 ! I/ J�r� i,5 l�l print name and title _ammisslan f`�nG�July 20,2f702 Mailing Address: 5956 Fw/ -L,n Tn <Pnsf�',�$�v�, 3 033G� (Corporations require two signatures: one from each of the following: A. Chairman of Board, President, any Vice President; AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer.) End of Signatures 4A y o Ij�� ® O NOTE: SHADED AREA REPRESENTS AVAILABLE LEASED SPACE �O OF 114 SQUARE FEET. m Do II-- --I _ AREA OF BLOWUP I I I I SUITE A111.1 I I I I --------------------- MINUTE ORDER NO. 6817 APPROVING SUPPLEMENTAL SPACE USE AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND THE PARADIES SHOPS, LLC. ------------------ I HEREBY CERTIFY that this Minute Order, approving supplemental space use agreement between the City of Palm Springs and the Paradies Shops, LLC, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 21 st day of March, 2001. PATRICIA A. SANDERS City Clerk