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HomeMy WebLinkAbout10/3/2001 - STAFF REPORTS (19) DATE: October 3, 2001 TO: City Council FROM: Assistant City Manager-Administration SUBJECT: Sublease Agreement between the City and The Partnership for the Performing Arts, LP regarding the Alleyway located between the Plaza Theatre and Indian Canyon Drive RECOMMENDATION: That the City Council approve a Sublease Agreement by and between the City of Palm Springs and The Partnership for the Performing Arts, LP("The Partnership")to allow forthe Alleyway located between the Plaza Theatre and Indian Canyon Drive to be used for storage of stage sets and props, and authorize dismissal of its current lawsuit against"The Partnership." SUMMARY: The City of Palm Springs has been working on an arrangement where it has leased the Alleyway located between the Plaza Theatre and Indian Canyon Drive from Plaza Investment Company, Inc. so it could be subleased to the City of Palm Springs Redevelopment Agency's tenant in the Plaza Theatre for the"The Follies"' storage of stage sets and props. This recommended action would conclude the arrangement, and cause dismissal of currently pending litigation. BACKGROUND: In a separate report, it was recommended that Council approve entering into a Business Property Lease with Plaza Investment Company, Inc. for leasing the Alleyway located between the Plaza Theatre and Indian Canyon Drive as a storage and staging area for the Plaza Theatre. The reason was that over the past many years"The Follies" has been using the Alleyway for storage and staging without permission and without paying rent to the Alleyway's owner, Plaza Investment Company, Inc. The City has agreed to lease the premises from Plaza Investment Company, Inc. It is recommended that now the City sublease that space to "The Follies." This proposed Sublease Agreement incorporates all of the terms,covenants and conditions of the Business Property Lease between the City and Plaza Investment Company, Inc., which would bind the Sublessee to the terms of the Business Property Lease, except as provided in the Sublease. The rent for the Sublessee is set at $300 per month for the term commencing September 1, 2001 and ending December 31, 2006. Additionally, the Sublessee will pay the Lessee the sum of $3,500 in consideration of prior attorneys' fees and rent. This is 50% of the $7,000 being paid to Plaza Investment Company, Inc. by the City, pursuant to the Business Property Lease. The parties to the Sublease Agreement have been meeting on a regular basis to develop clear understandings of each party's responsibilities under the Sublease, as well as under the Business Property Lease. A,h Sublease Agreement- City and "The Partnership" October 3, 2001 Page 2 At the beginning of"The Partnership's"2000-2001 season, "The Partnership"constructed scaffolding improvements in the Alleyway without a permit. The City, in response, filed a lawsuit seeking removal of the structure. The parties have now reached agreement on how these improvements can be modified to meet code, and the existing lawsuit can now be dismissed with each party assuming their own costs. Attached is a proposed Minute Order approving the Sublease Agreement by and between the City of Palm Springs and the Partnership for the Performing Arts, LP for the lease of the Alleyway located between the Plaza Theatre to Indian Canyon Drive. , a ,,Z Dallas J. Flicek, Assistant City Manager-Administration APPROVED---::'- 2� City Manager Attachments: 1. Minute Order 2. Proposed Sublease /Az RESOLUTION NO. 20198 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A SUBLEASE AGREEMENT BETWEEN THE CITY AND THE PARTNERSHIP FOR THE PERFORMING ARTS, LP PROVIDING FOR USE OF THE ALLEYWAY LOCATED BETWEEN THE PLAZA THEATRE AND INDIAN CANYON DRIVE NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, California that a Sublease Agreement by and between the City and The Partnership forthe Performing Arts, LP providing forthe use ofthe Alleyway located between the Plaza Theatre and Indian Canyon Drive as a staging and storage area for stage sets and props is hereby approved. ADOPTED this 3rd day of October 2001. AYES: Members Hodges, Jones, Oden, and Reller-Spurgin NOES: Mayor Kleindienst , ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk CiittyManage REVIEWED AND ADOPTED AS TO FORM: NAGSY