HomeMy WebLinkAbout1/2/2003 - STAFF REPORTS (4) DATE: December .18,-2002
TO City Council
FROM: Director of the Downtown Development Center and
Director of Community and Economic Development
APPROVE A ONE YEAR LEASE WITH MERCEDES WARD D/B/A PALM SPRINGS
CARRIAGES IN THE CARRIAGE STORAGE FACILITY AT THE VILLAGE GREEN
RECOMMENDATION:
That City Council approve a Minute Order to grant a one year lease at
current Fair Market Rent to Mercedes Ward d/b/a "Palm Springs
Carriages" for the City owned carriage storage facility at the Village Green,
from January 2, 2003 through December 31, 2003, in a form acceptable to
the City Attorney.
SUMMARY:
The City owns a small Carriage Storage Facility at the Village Green
which is located within a 1,782 square foot portion of parcel APN#513-
153-016 and includes a 266 square foot shed for supplies. In August,
2002, staff retained Dozier Appraisal company to prepare an appraisal of
current "Market Monthly Rental" for this facility on an "as-is" basis, which
was estimated at $156.00 per month. Staff has also interviewed and
selected Mercedes Ward d/b/a "Palm Springs Carriages" to lease and
operate out of this facility from January 2, 2003 to December 31, 2003 at
the rental rate of$156.00 per month, which is consistent with the
appraisal. This is a short term, interim lease with a qualified operator to
keep the carriage ride activity viable in downtown while the City Council
can consider adopting an ordinance providing for a California Franchise
Agreement which will allow for competitive bidding and selection of an
exclusive carriage ride franchisee in downtown.
BACKGROUND:
The historic "Village of Palm Springs" has been the beneficiary of one or
more locally owned horse drawn carriage rides offering a unique service
and adding ambiance to the downtown community for well over the past
decade. These carriage rides have offered "village" patrons and guests
leisurely rides through downtown as well as individual and family guided
tours of the nearby historic Tennis Club Hotel District and the Las Palmas
neighborhood. Many downtown special events and parades, including
VillageFest, have consistently benefitted from this added dimension, and
downtown area hotels have utilized a readily available romantic carriage
ride experience as a high quality shuttle service to and from downtown
Carriage Facility Lease
page two
shops. Private parties, including weddings in downtown chapels and
grand openings of new restaurants and clubs, have enthusiastically
utilized these services. In essence, the presence of horse drawn carriage
rides in downtown Palm Springs has become an icon of the the historic
"village" experience.
The City of Palm Springs owns a carriage storage facility behind the
Village Green for the use of vendors providing these services. During the
past ten years, two carriage ride services have utilized these facilities but
have gone out of business in downtown Palm Springs due to a lack of
profitability. The space rental charge by the City for their use of these
facilities was cited in both cases as a burden which their businesses
could not bear. Two other carriage ride companies, from Idyllwild and
Seattle, have attempted to utilize these facilities but with resultant conflicts
with other carriage ride vendors, lack of adequate patronage to support
their businesses, and in one case, complaints from animal rights activists
and patrons for mistreatment of their horses. The Seattle based company
will probably try to come back to Palm Springs in the fall, but due to their
previous operating problems and conflicts staff does not feel that they are
the type of operation we should encourage on our public streets. One
other carriage ride company form Lake Tahoe is hoping to come to Palm
Springs in the fall, but does not plan to use the City's carriage ride facility
and has stated his intent to focus on rides linking celebrity homes and a
service area in the northern portion of downtown and the southern portion
of the "Uptown" area.
Over the past decade, there has been only one horse drawn carriage ride
service operating in downtown Palm Springs which has consistently
offered a high quality operation over a multiple year period, combined with
good cooperation with traffic and parking control officers of the Palm
Springs Police Department. Peter Dallas brought "Palm Springs
Carriages" to the community in October of 1998, became active in the
Chamber of Commerce and worked very cooperatively with the Downtown
Development Center and Downtown Experience offices from the outset.
He sold his carriage ride business to Mercedes Ward of Desert Hot
Springs in April, 2001 and she has continued the consistently good
services in downtown Palm Springs on behalf of "Palm Springs
Carriages".
However, even this successful business continues to struggle to make
break-even and offset the living expenses of the owner. Given the past
history and current situation of the horse drawn carriage business in
downtown Palm Springs, staff recommends the following course of action
in order to keep a high quality service in successful operation:
AA-
Carriage Facility Lease
page three
The Proposal:
• One year lease with: Mercedes Ward dba "Palm Springs Carriages'; PO
Box 836; Desert Hot Springs, CA 92240 to provide high quality and
consistent horse drawn carriage ride services in downtown Palm Springs;
• Carriage ride services are to be provided twelve months per year,
weather and heat conditions permitting; seven days per week October
through May and four days per week (Thursday through Sunday) June
through September; 5:00 PM until 12:00 PM;
•A maximum of three (3) and a minimum of (2) horse drawn carriages will
be provided by the Tenant during all operational hours;
-The Tenant will also provide carriage ride services at "VillageFest"
each week that the event operates throughout the year and at all city
sanctioned special events and parades in the downtown area throughout
the year at no cost to the City;
• Tenant shall be permitted to charge reasonable and competitive fees
to patrons of the carriage ride;
• Tenant will maintain a valid City Business License and Comprehensive
General Liability Insurance Policy, $1,000,000 combined single limit, with
the City named as an added insured;
• The City will provide suitable signage for, and enforce the reservation
after 5:00 PM each day of, two standard on-street automobile parking
spaces for loading and unloading of passengers of the carriage rides;
one on the west side of Palm Canyon Drive in front of the Village Green
and one on the west side of Palm Canyon Drive, south of the bus zone in
front of Starbucks.
The City will also provide at least one suitable alternate carriage ride
loading and unloading location throughout the year during "VillageFest"
and any other City sanctioned special event or parade where Palm
Canyon Drive is closed to vehicular traffic;
03
Carriage Facility Lease
page four
�L
I
A. OG URN owntown De elopment Center
A MOND f Commu ' and Economic Development
APPROVED
City Manager
ATTACHMENTS:
1. Minute Order
2. Lease
LEASE
THIS LEASE ("Lease") is made and entered into this 2nd day of January, 2003
by and between the CITY OF PALM SPRINGS, a municipal corporation ("Landlord'), and _
Mercedes Ward d/b/a "Palm Springs Carriages"
("Tenant").
WITNESETH:
1. FUNDAMENTAL LEASE PROVISIONS. Certain Fundamental Lease Provisions are presented in
this Article and represent the agreement of the parties hereto, subject to further definition and
elaboration in the respective referenced Articles and elsewhere in this Lease. In the event of any
conflict between any Fundamental Lease Provision and the balance of this Lease,the latter shall control.
References to specific Articles are for convenience only and designate some of the Articles where
references to the particular Fundamental Lease Provisions may appear.
(a) Property: The term "Property" as used herein shall refer to that certain real property located
in the County of Riverside, State of California, as more particularly described in Exhibit "A" hereof
together with the improvements located thereon.
(b), Demised Premises: The "Demised Premises" consist of the area generally crosshatched on
the Plot Plan attached as Exhibit "B" hereof.
(c) Approximate Parcel Area of Premises: 1,782 square feet: approximate frontage:
27 feet; approximate depth: _ 66 feet (said measurements being to
the center of interior separation partitions and the outside of exterior walls).
(d) Tenant's Trade Name: Palm Springs Carriages . lSee Article 3).
(ei Lease Termination Date:December 31, 2003 (See Article 4).
if) Term: one year ISee Article 41A)1.
(g) Extension Options: one option for a term of one year. (See Article
4(B)).
(hl Monthly Rental: $ $156.00 (See Article 5).
(i) Security Deposit: $ $156.00 (See Article 5(F)).
(j) Use of Demised Premises:Storage of horse-drawn carriages and related supplies.
(See Article 3).
W Address far Notices:
Landlord: City of Palm Springs
P.O. Box 2743
Palm Springs, CA 92263
Attn: Jerry Ogburn
Telephone: 17601 325-8979 /rt
Tenant: Mercedes Ward d'lbfa
"Palm Springs Carriages"
P.O. Box 836
Desert Hoff Springs, CA 92240
(m1 Party to Pay Utility Costs: yes (See Article 19).
2. EXHIBITS. The following drawings and special exhibits are attached hereto and made a part
of this Lease:
Exhibit "A" - Legal Description of Property.
Exhibit "B" - Plot Plan of Property Showing the Location of Demised Premises.
Exhibit "C" - Construction Obligations.
Exhibit "D" - Tenant's Estoppel Certificate.
Exhibit "E" - Rules and Regulations.
The following addenda are attached hereto and made a part hereof:
3. USE. The Landlord hereby leases to Tenant and Tenant hereby hires from Landlord'the
Demised Premises with appurtenances as defined herein, for the purpose of conducting thereon only
the use specified in Section 1(j) of this Lease. Tenant agrees to use such premises only under the trade
name specified in Article I(d) hereof.
4. TERM.
A. Initial Term. The term of this Lease shall be as specified in Article 1(fl hereof or until this
Lease is earlier terminated as provided herein, including but not limited to the provisions of Article 22
hereof. The term of this Lease shall commence an the earlier of the following dates ("Commencement
Date"I: (a) the date which is thirty (30) days after the Landlord notifies Tenant in writing that the
improvements to be provided by Landlord as set forth in Article 8 have been substantially completed
or (b) the date on which Tenant shall open the Demised Premises for business to the public. In the
event that the Commencement Date does not occur on the first day of a calendar month, the term of
this Lease shall be extended by the number of days of the partial month at the commencement of the
term such that the Lease shall end on the last day of a calendar month which date of termination is
specified in Article 1(e) hereof ("Termination Date"). The improvements shall be deemed substantially
completed when "Landlord's Work" as defined in Article 8 has been completed except for minor work
which does not materially prevent Tenant from occupying the Demised Premises.
B. Option Term. Tenant is given the option(s) to extend the term on all of the provisions
contained in this Lease for the period specified in Article 11m) ("extended term") following the expiration
of the initial term or any other extended term properly exercised hereunder, by giving notice of exercise
of the option ("option notice") to Landlord at least six (61 months but not more than one year before
the expiration of the initial term or any other 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.
5. RENTAL.
- 2 -
EXHIBIT "B"
PLOT PLAN OF THE PROPERTY SHOWING
THE LOCATION OF DEMISED PREMISES
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EXHIBIT"B"
TO LEASE
EXHIBIT "C.
CONSTRUCTION OBLIGATIONS
The City of Palm Springs will provide the following designation of parking
spaces on South Palm Canyon Drive:
One (1) on-street automobile parking space located on the west side of Palm
Canyon Drive in front of the Village Green and south of the bus zone in front of
Kaiser Grille;
One (1) on-street automobile parking space located on the west side of Palm
Canyon Drive south of the bus zone in front of Starbucks; and
Suitable signage and either red or yellow painted curb for the reservation of
these two (2) spaces after 5:00 PM each day year round for carriage ride
loading and unloading.
ItO
EXHIENT "C"
TO LEASE
EXHIBIT "D"
ESTOPPEL CERTIFICATE
nU)A j 464,
Tenant: v,
Landlord: CITY OF PALM SPRINGS, a
municipal corporation
Date of Lease: 2 rLOd
Shopping Center: JV t(
Demised Premises: (. ✓{ c
To:
The undersigned hereby certifies as follows:
1 . The undersigned is the tenant ("Tenant") under the above-referenced lease ("Lease")
covering the above-referenced premises ("Demised Premises").
2. The lease constitutes the entire agreement between landlord under the Lease
("Landlord") and Tenant with respect to the Demised Premises and the Lease has not been modified,
changed, altered or amended In any respect except is set forth above.
3. The term of the Lease commenced or 2. , � and, including any
presently izcrs
exercised option or renewal term, will expire on , �_. Tenant has accepted
possession of the Demised Premises and is the actual occupant in possession thereof and has not
sublet. assigned or hypothecated its leasehold interest. All improvements to be constructed on the
Demised Premises by Landlord have been completed and accepted by Tenant and any tenant
construction allowances have been paid in full.
4. As of this date, to the best of Tenant's knowledge, there exists no breach or default,
nor state of facts which, with notice, the passage of time, or both, would result in a breach or default
on the part of either Tenant or Landlord. To the best of Tenant's knowledge, no claim, controversy,
dispute, quarrel or disagreement exists between Tenant and Landlord.
EXHIBIT "D"
TO LEASE 10
5. Tenant is currently obligated to pay Monthly Rent in installments of per
month, and such monthly installments have been paid not more than one month in advance. To the
best of Tenant' s knowledge, no other rent has been paid in advance and Tenant has no claim or
defense against Landlord under the Lease and is asserting no offsets or credits against either the rent
or Landlord. Tenant has no claim against Landlord for any security or other deposits except
which was paid pursuant to the Lease.
6. Tenant has no option or preferential right to lease or occupy additional space within the
Shopping Center of which the Demised Premises are a part. Tenant has no option or preferential right
to purchase all of any part of the Demised Premises nor any right or interest with respect to the
Demised Premises other than as Tenant under the Lease. Tenant has no right to renew or extend the
term of the Lease except as set forth in the Lease.
7. Tenant has made no agreements with Landlord or its agent or employees concerning
free rent, partial rent, rebate of rental payments or any other type of rent or other concession except
as expressly set forth in the Lease.
EXHIBIT "D" '
TO LEASE
8. There has not been filed by or against Tenant a petition in bankruptcy. voluntary or
otherwise, any assignment for the benefit of creditors, any petition seeking reorganization or
arrangement under the bankruptcy laws of the United States, or any state thereof, or any other action
brought under said bankruptcy laws with respect to Tenant.
9. All insurance which Tenant is required to maintain under the Lease has been obtained
by Tenant and is in full force and effect and all premiums with respect thereto have been paid.
10. The undersigned acknowledges that a c �a the beneficiary under the
deed of trust encumbering the Shopping Center, that sa' I eed of trust c ains an assignment of rents
due under the Lease, lorl that _ is the purchaser of the Shopping Center under an
agreement of purchase and sale by and between , as buyer, and Landlord, as
seller, and that said agreement contains an assignment of the Lease. In either case, the undersigned
acknowledges that `I is materially relying on the representations of Tenant herein
made. ��//
Dated this OZ-4 day of
By: _ Jlrf) _,•�•• �^�G's,� � �J1a�7e r�
Its Lk
EXHIBIT "D"
TO LEASE
EXHIBIT "E"
RULES AND REGULATIONS
1 . All loading and unloading of goods shall be done only at the times, in the areas and through
the entrances reasonably designated for such purposes by Landlord.
2. The delivery or shipping of merchandise, supplies and fixtures to and from the Demised
Premises be subject to such rules and regulations as in the reasonable judgment of Landlord are
necessary for the proper operation of the Demised Premises or of the Shopping Center generally.
3. All of Tenant's refuse and rubbish shall be removed to central trash bins located in the
Shopping Center, at Tenant's sole cost and expense.
4. No radio or television or other similar device audible outside the Demised Premises shall
be installed without obtaining in each instance the written consent of Landlord. No aerial shall be
erected on the roof or exterior walls of the Demised Premises or on the grounds of the Shopping Center
without first obtaining in each instance the written consent of Landlord which consent shall not be
unreasonably withheld or delayed. Any aerial so installed without such written consent shall be subject
to removal without notice at any time.
5. No loudspeakers, televisions, phonographs, radios or other devices shall be used in a
manner so as to be heard or seen outside of the Demised Premises without first obtaining in each
instance written consent of Landlord.
6. The outside sidewalks and loading areas immediately adjoining the Demised Premises shall
be kept clean and free from dirt and rubbish by Tenant to the reasonable satisfaction of Landlord, and
Tenant shall not place or permit any obstructions or merchandise in such areas, except to the extent
specifically permitted by the provisions of Tenant's Lease.
7. Tenant shall not burn any trash or garbage of any kind in or about the Demised Premises
or the Shopping Center generally.
8. Tenant will not allow animals, exceptYseeing-eye dogs,
�� in, about
1 or upon the
_ Demised
Premises. c4MA, . c LW/S29 ctt,.c- n '�,`� tea-✓✓� �
9. Tenant shall not use, and shall not allow anyone else to use, the Demised Premises as a \�_M
habitation. Such prohibition shall include, without limitation, sleeping, eating or bathing.
10. Tenant shall make no use of the roof without obtaining the consent of Landlord.
11 . Tenant shall not place any rubbish or other matter outside any building within the Shopping
Center, except in such containers is are authorized from time to time by Landlord.
12. Tenant shall keep all window displays in a clean and orderly fashion. If merchandise is to
be shown in the window displays, such merchandise shall be changed at least every other month.
Landlord shall have the right to require the removal or change of any window display it finds, in its sole
and absolute judgment, unattractive or objectionable.
EXHIBIT 'E"
TO LEASE
MINUTE ORDER NO.
APPROVING A ONE YEAR LEASE WITH MERCEDES
WARD D/B/A PALM SPRINGS CARRIAGES AT THE CITY
OWNED CARRIAGE STORAGE YARD AT THE VILLAGE
GREEN IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY.
----------------------------------------------------
I HEREBY CERTIFY that this Minute Order,
approving a one year lease with Mercedes
Ward d/b/a Palm Springs Carriages at the
City owned carriage storage facility at the
Village Green was adopted by the City
Council of the City of Palm Springs,
California in a meeting thereof held on the
18th day of December, 2002.
BY: PATRICIA A. SANDERS
City Clerk
15