HomeMy WebLinkAbout11/7/2001 - STAFF REPORTS (10) DATE: November 7, 2001
TO: City Council
FROM: Assistant City Manager-Administration
SUBJECT:
AMENDMENT NUMBERTWO TO SUBLEASE AGREEMENT WITH THE AGUACALIENTE
BAND OF CAHUILLA INDIANS FOR A PORTION OF THE VISITOR CENTER
RECOMMENDATION:
It is recommended that the City Council approve Amendment Number Two to the Sublease
with the Agua Caliente Band of Cahuilla Indians made and entered into September 3, 1998,
and extended by Amendment Number One on October 7, 1998, for space in the Palm
Springs Visitor Information Center.
SUMMARY:
This would be a second extension of the Sublease Agreement between the City and the
Agua Caliente Band of Cahuilla Indians for a portion of the City's Visitor Information Center.
This recommended extension would be effective October 15, 2001 through October 31,
2002.
BACKGROUND:
On September 3, 1997, a Sublease was entered into by and between the City of Palm
Springs and the Agua Caliente Band of Cahuilla Indians for 885 square feet of space in the
City's Visitor Information Center located at 2777 North Palm Canyon Drive.
The initial term of the Sublease ran from October 15, 1977 through October 14, 1998, with
one option to extend the term for one year, which was not exercised.
The rental rate for the Sublease Premises was set at$1,770 per month. That rent was set
based on a series of estimated costs, such as cost of utilities for the Sublease Premises.
We later discovered these estimates were on the high side and,therefore,a rental reduction
was proposed from $2.00 per square foot to $1.60 per square foot, a 20% reduction, to
reflect a more equitable rental rate. Therefore,Amendment Number One contained a rental
rate of $1,416 per month. A current review of the rental rate being charged shows that
$1,416 per month is still a fair and equitable rate and is proposed to be continued in
Amendment Number Two.
Additionally, prior to Amendment Number One, the use of the Sublease Premises was
essentially restricted to promoting the Agua Caliente Cultural Museum,the Indian Canyons
and the Spa Casino. It also provided that the Sublessee may distribute coupons and/or gift
certificates to the Spa Casino, redeemable only at the Spa Casino. The Sublease also
prohibited the tenant from distributing any brochures or creating other displays, or otherwise
advertising the Spa Hotel in any way on the Sublease Premises.
914
November 7, 2001
Page 2
Amendment Number Two to Sublease Agreement
with Agua Caliente Band of Cahuilla Indians for a
portion of the Visitor Information Center
That was changed in Amendment Number One by providing that the tenant may distribute
coupons and/or gift certificates forthe Agua Bar&Grill Restaurant, located in the Spa Hotel,
and to be allowed, in exchange for providing attendant assistance to the Visitor Center staff,
to have one Spa Hotel wall display and one Spa Hotel brochure display in the Sublease
Premises, provided that the tenant has paid for a similar service for a wall display and
brochure display in the main section of the Visitor Information Center.
Since we had worked outthose changes three years ago through Amendment Number One,
there are no additional proposed changes to the Sublease Agreement at this time, except
for its term as shown in the proposed Amendment Number Two. The term is to expire
October 31, 2002, which is the expiration date of the underlying main lease for the entire
Visitor Information Center
SMG, which manages the Visitor Information Center for the City, is in support of this
proposed sublease extension.
Attached is a copy of the proposed amendment and a Minute Order approving the subject
Amendment Number Two.
Dallas J. Fli ek, Assistant City Manager-Administration
APPROVED
City Managerj '
Attachments:
1. Amendment Number Two
2. Minute Order
REVIEWED BY DEPT.OF FINANCE
I,`�
SECOND AMENDMENT TO SUBLEASE
THIS SECOND AMENDMENT TO SUBLEASE is made this day of November
2001, by and between THE CITY OF PALM SPRINGS, a California Municipal Corporation,
("City"), and the AGUA CALIENTE BAND OF CAHUILLA INDIANS ("Sublessee").
RECITALS
A. On September 3, 1997, Sublessee entered into that certain Sublease Agreement
("Sublease") for an 885-square foot portion of the City's Visitor Information Center, as fully
described in the Sublease.
B. Initial term of the Sublease commenced on October 15, 1997,to expire October 14,
1998, with one (1) option to extend the initial term for one (1) year, which option was not
exercised.
C. Sublessee and City extended the subject Sublease, but with certain amendments,
by entering into the First Amendment to Sublease, effective October 15, 1998 for one year,
with two (2) one-year extension options.
D. Sublessee and City wish to again extend the subject Sublease, as amended by the
First Amendment to Sublease, by adopting this Second Amendment.
E. The term of this Second Amendment to Sublease is limited to the expiration date of
the Lease for the Visitor Information Center by and between the City of Palm Springs and
Palm Springs Rental Company, entered into April 16, 1997.
COVENANTS
NOW, THEREFORE, the parties agree to amend the Sublease in the following particulars
only:
1. Section 2.1 of the Sublease is amended to read:
2.1 The renewal term of the Sublease shall commence on October 15,
2001, ("Renewal Date"),and shall expire on October3l,2002, ("Termination
Date"), unless terminated earlier in accordance with the Sublease.
qA 3
Page 2
Second Amendment to Sublease Agreement
between the City of Palm Springs and the
Agua Caliente Band of Cahuilla Indians
2. Except as specifically provided in this Amendment, all terms and conditions in
the Sublease, as modified by the First Amendment to the Sublease, shall remain
otherwise unmodified and in full force and effect.
ATTEST: CITY OF PALM SPRINGS, a Municipal
Corporation
By:
Its:
"SUBLESSOR"
APPROVED AS TO FORM:
City Attorney
AGUA CALIENTE BAND OF
CAHUILLA INDIANS
By:
Its:
"SUBLESSEE"
Uy
MINUTE ORDER NO.
APPROVING THE SECOND AMENDMENT TO SUBLEASE
BY AND BETWEEN THE CITY OF PALM SPRINGS AND
THE AGUA CALIENTE BAND OF CAHUILLA INDIANS
ENTERED INTO ON SEPTEMBER 3, 1997, CITY
AGREEMENT#3844, FOR SPACE IN THE CITY'S VISITOR
INFORMATION CENTER
---------------
I HEREBY CERTIFY that this Minute Order,approving the Second Amendment to Sublease
by and between the City of Palm Springs and the Agua Caliente Band of Cahuilla Indians
entered into on September 3, 1997, City Agreement #3844, for space in the City's Visitor
Information Center,was adopted by the City Council of the City of Palm Springs, California
in a meeting thereof held on the 7th day of November 2001.
PATRICIA A. SANDERS
City Clerk