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Home My WebLink About2006-09-06 STAFF REPORTS 2L uvtl��'� pA MMS City Council Staff Report DATE: September 6, 2006 CONSENT CALENDAR SUBJECT: APPROVE AMENDMENT NO. 2 TO AGREEMENT NO. 3085 WITH LENORE ANNENBERG TO EXTEND THE TERM FIVE (5) YEARS FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY Amendment No. 2 to agreement No. 3085 for a term of not more than five (5) years. RECOMMENDATION: 1. Adopt Minute Order No. approving Amendment No. 2 to Agreement No. 3085 with Lenore Annenberg to extend the term five years effective September 15, 2006 through September 14, 2011. 2. Authorize City Manager to execute all necessary documents. STAFF ANALYSIS: The City of Palm Springs entered into a lease with Walter H. Annenberg on September 15, 1991 for a term of five (5) years ending September 14, 1996 and two five-year options commencing September 15, 1996 and ending September 14, 2006. Lenore Annenberg assumed the lease on February 19, 2003 and has requested an extension to Agreement No. 3085 for a term of not more than five (5) years. The current annual base rent of $20,177.52 will be adjusted effective September 15, 2006 to reflect the change in the cost of living as shown in the July 2006 Consumer Price Index (CPI). The CPI adjustment is effective every fifth year of the agreement on September 15 based on the preceding July CPI. The new annual rent effective September 15, 2006 will be $23,922.48. This is an 18.56% increase. ITEM GAO. 2 . L . City Council Staff Report September 6, 2006 -- Page 2 Lenore Annenberg Amendment No. 2 At its regularly scheduled meeting on September 6, 2006, the Airport Commission recommended City Council approve Amendment No. 2 to Agreement No. 3085 with Lenore Annenberg to extend the term effective September 15, 2006 through September 14, 2011. FISCAL IMPACT: Approval of Amendment No. 2 to Agreement No. 3085 represent an increase in Airport revenue of $3,744.96 per annum based on the 18.56% CPI adjustment effective September 15, 2006. David H. Ready, City M r Richard S. Walsh, A.A.E. �� Director of Aviation Attachments: Minute Order No Amendment No. 2 to Lease Agreement No. 3085 MINUTE ORDER NO. ADOPT MINUTE ORDER NO. APPROVING AMENDMENT NO. 2 TO AGREEMENT NO. 3085 WITH LENORE ANNENBERG TO EXTEND THE TERM FIVE (5) YEARS EFFECTIVE SEPTEMBER 15, 2006 THROUGH SEPTEMBER 14, 2011, I HEREBY CERTIFY that this Minute Order, authorizing the City Manager ' to execute Amendment No. 2 to Agreement No. 3085 with Lenore Annenberg to extend the term five (5) years effective September 15, 2006 through September 14, 2011, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 6th day of September 2006. James Thompson, City Clerk AMENDMENT NO. 2 TO LEASE WITH LEONORE ANNENBERG This AMENDMENT NO. 2 TO LEASE NO. 3085 WITH LEONORE. ANNENBERG ("Amendment No. 2") is made and entered into this day of 2006, by and between the CITY OF PALM SPRINGS, a California municipal corporation ("City") and LEONORE ANNENBERG ("Successor Tenant"). RECITALS WHEREAS, on March 18, 1992, City and Tenant entered into that certain Lease with Walter H. Annenberg ("Agreement"), for Tenant's lease of certain real property at the Palm Springs International Airport ("Airport"), as more specifically described in the Agreement. WHEREAS, Lease Agreement No. 3085 allowed Tenant the option of two (2) five-year extensions; the first for a period beginning September 15, 1996 and ending September 14, 2001, and the second for a period beginning September 15, 2001 and ending September 14, 2006. WHEREAS, Tenant, in accordance with the requirements of Lease Agreement No. 3085, has provided written notification of intent to exercise its option to amend said Agreement through September 14, 2001, and City has accepted such notice as timely given. WHEREAS, assignment of Lease Agreement No. 3085 to Leonore Annenberg was granted effective February 19, 2003. WHEREAS, Tenant has requested of City to amend Lease Agreement No. 3085 allowing Tenant a five (5) year extension. WHEREAS, the parties wish to amend the Agreement pursuant to the terms of this Amendment No. 2, superseding Amendment No. 1 in its entirety. AGREEMENT NOW, THEREFORE, in consideration of the promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Tenant agree as follows: 1. Amendment to Article L Article I of the Agreement entitled "TERM" shall be amended to add the following clause immediately following the existing language in such Article I, with all such existing language remaining unmodified and in full force and effect: Annenberg Agreement No. 3085 Amendment No. 2 Page 1 Palm Springs International Airport "D. Lessor and Lessee agree to extend the term of the lease for an additional five year period, which shall be for a period beginning September 15, 2006 and finally terminating September 14, 2011 at a monthly rental of$1,993,54, 2. Article XXII. — Lessor and Lesse agree that Recapture provisions shall be deleted in its entirety. 3. Amendment No, 1. The parties agree that this Amendment No. 2 i supersedes Amendment No. 1 in its entirety. 4. Due Execution. The person(s) executing this Amendment No. 2 on behalf ' of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2, and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound. 5. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment No. 2, the terms of the Agreement shall remain unchanged and in full force and effect. [SIGNATURES ON NEXT PAGE] Annenberg Agreement No. 3085 Amendment No. 2 Page 2 Palm Springs International Airport IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above ATTEST: CITY OF PALM SPRING a municipal corporation By: By. City Clerk City Manager APPROVED AS TO FORM: By: City Attorney CONTRACTOR: Check one: Individual —Partnership Corporation • Corporations require two notarized signatures: One from each of the following: A Chairman of Board, r President,or any Vice President:AND B. Secretary,Assistant Secretary,Treasurer,Assistant Treasurer, or Chief Financial Officer. 8Y: 8y: ' Signature(notarized) Signature (notarized) i Name: Name: Title: Title: i State of State of County of County of On before me, On before me, personally appeared personally appeared personally known to me(or proved to me on personally known to me (or proved to me on the basis of satisfactory evidence)to be the the basis of satisfactory evidence)to be the person(s)whose riame(s) is/are subscribed person(s)whose name(s) Ware subscribed to the within instrument and acknowledged to the within instrument and acknowledged to me that he/she/they executed the same to me that he/she/they executed the same in his/her/their authorized capacity(ies), and in his/her/their authorized capacity(ies),and that by his/her/their signatures(s)on the that by his/her/their signatures(s)on the instrument the person(s),or entity upon instrument the person(s), or entity upon behalf of which the person(s)acted, behalf of which the person(s)acted, executed the instrument, executed the instrument. WITNESS my hand and official seal, WITNESS my hand and official seal. Notary Signature: Notary Signature: Notary Seal: Notary Seal: Annenberg Agreement No. 3085 Amendment No. 2 Page Palm Springs International Airport