HomeMy WebLinkAbout10/7/2009 - STAFF REPORTS - 2.R.CITY COUNCIL STAFF REPORT
DATE: October 7. 2009
CONSENT CALENDAR
SUBJECT: THE PARADIES SHOPS, LLC — SUPPLEMENTAL SPACE USE
AGREEMENTS FOR OFFICE AND STORAGE SPACE
FROM: David H. Ready, City Manager
BY: Department of Aviation
6111d,IPih1:Y1
The Paradies Shops, the Airport's terminal retail news and gift concessionaire, has a
long-term agreement at Palm Springs International Airport and this action will continue
to provide office and storage space necessary for their operational efficiency.
RECOMMENDATION:
1. Approve Supplemental Office Space Use Agreement with The Paradies
Shops, LLC for 140SF Office Space effective October 20, 2009 through
October 31, 2012 at $300.88 per month.
2. Approve Supplemental Storage Space Use Agreement with The Paradies
Shops, LLC for 304SF Storage Space effective November 1, 2009 through
October 31, 2012 at $508.19 per month.
3. Authorized the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The Paradies Shops current supplemental storage space agreement expires on October
31, 2009. This new three-year agreement is for the same storage space and will remain
at the same rate $20.06 per square foot per annum.
The other current supplemental office space agreement expired on October 19, 2009.
This new three-year agreement will be for a slightly larger office. The prior Paradies office
will be utilized by the United Service Organization (USO). The rate for the new office will
iTFM NO. ?_ • 1-
City Council Staff Report
October 7, 2009 — Page 2
Paradies Supplemental Agreements — Office and Storage Space
remain the same at $25.79 per square foot per annum.
Both supplemental agreements may be cancelled by either party with 30-days written
notice. The rates are consistent with the City of Palm Springs Comprehensive Fee
Schedule. The Exclusive Use Space rates for Paradies are the same as those offered to
the non -signatory airlines.
Due to a recent change in City Council meeting dates, this item could not go to the
Airport Commission before City Council consideration. The Airport Commission will be
advised of this action at their October 14, 2009 meeting.
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The Supplemental Office Space Use Agreement will include an additional 26 square
feet that will result in $670.54 additional revenue per annum.
Thomas Nolan, A.A.E.
Executive Director
David H. Ready
City Manager
Attachments:
Paradies Supplemental Storage Space Use Agreement
Paradies Supplemental Office Space Use Agreement
SUPPLEMENTAL STORAGE SPACE USE AGREEMENT
THE PARADIES SHOPS, LLC
THIS SUPPLEMENTAL SPACE USE AGREEMENT, made and entered
into as of this day of 2009, by and between the CITY OF
PALM SPRINGS, a municipal corporation ("City") and PARADIES SHOPS, LLC,
a Georgia limited liability company a subsidiary of the THE PARADIES SHOPS,
a Georgia Corporation ("TENANT").
RECITALS
A. City is the owner of the Palm Springs International Airport, ("Airport"), and
operates thereon the Palm Springs Airport Terminal building ("Terminal").
B. Tenant currently is party to Lease Agreement No. 4159 for Concessions at
the Palm Springs International Airport-
C. Tenant requires additional storage space on the lower level of the
Terminal during the remaining term of Agreement No. 4159,
AGREEMENT
NOW, THEREFORE, in consideration of the promises of the parties
hereto and for good and valuable considerations, the receipt and sufficiency of
which is hereby acknowledged, City and Tenant agree as follows:
ARTICLE I
PREMISES, RIGHTS AND PRIVILEGES
City hereby offers to Tenant and Tenant takes from City, for its exclusive
use except as otherwise noted, certain demised premises located in the terminal
building, consisting of: Lower Level Storage Space (No. 4) containing 304
square feet as designated on Exhibit'W', attached hereto and made a part of this
Agreement. Demised premises may be used by Tenant as a storage area for the
storage of non-perishable supplies, fixtures and equipment required for the sale
of merchandise.
ARTICLE II
TERM OF AGREEMENT
The term of this Agreement shall be for a period commencing on
November 1, 2009 and terminating on October 31, 2012.
Paradies Storage Space No. 4 Agreement 1
Palm Springs International Airport
3
ARTICLE III
RENTALS, FEES AND OTHER CHARGES
The rental rate for Storage Space No. 4 shall be computed at the rate of
$20.06 per square foot per annum and shall be $508.19 per month, payable by
Tenant to City, beginning on November 1, 2009 and the first day of each month
thereafter. Rental Adjustments shall be based on current City of Palm Springs
Comprehensive Fee Schedule for Lower Level Storage Space / Non Signatory.
ARTICLE IV
IMPROVEMENTS AND ALTERATIONS
No improvements, alterations or additions; other than those heretofore
installed or approved by City, shall be made upon the demised premises by
Tenant with the written consent of City being first obtained.
ARTICLE V
MAINTENANCE AND OPERATION
Section 1. Utilities. City shall provide electricity to the storage space.
Section 2. Reoair 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 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 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 an 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 No. 4159; a separate
agreement, would also apply to the additional space provided for herein.
Paradies Storage Space No. 4 Agreement 2
Palm Springs International Airport
ARTICLE VII
TERMINATION
Termination for Convenience. City may terminate this Agreement for its
convenience at any time, in whole or in part, by giving Tenant thirty (30) days
written notice thereof. Upon said notice, City shall pay Tenant those allowable
costs determined by the City, in its sole discretion, to be reasonably necessary to
effect such termination. Thereafter, Tenant shall have no further claims against
City under this Agreement.
Tenant may terminate this Agreement at any time by giving City thirty (30) days
written notice thereof.
In the event Tenant fails to vacate the demised premises within thirty (30) days of
written notice of termination of this Agreement given by either Tenant or City,
Tenant agrees to allow City to remove and dispose of any property belonging to
Tenant and shall reimburse City for the costs associated with said removal and
disposal. Thereafter, Tenant shall have no further claims against City under this
Agreement.
ARTICLE VIII
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:
Palm Springs International Airport
Executive Director of Aviation
3400 E. Tahquitz Canyon Way, Suite OFC
Palm Springs, CA 92262
Until written notice of change thereof has been given to Tenant.
Section 3. The mailing address of Tenant shall be:
The Paradies Shops, Inc.
5950 Fulton Industrial Blvd. S.W.
Atlanta, Georgia 30336
Until written notice of change thereof has been given to City.
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 to execute and deliver this Agreement on
behalf of said party, (iii) by so executing this Agreement, such party is formally
Paradies Storage Space No. 4 Agreement 3
Palm Springs International Airport
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 this
party is bound.
(Signatures on next page)
Paradies Storage Space No. 4 Agreement
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 F�M:
Yf-
ity Attorhe
CONTRACTOR: Check che, Individual Partnership _Corporation
Corporations require two notarized signatures: One from each of the fdlowing• A. Chairman of Board.
President, or any Vice President. AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or
Chief Financial Officer.
By:
Name:
Title.
State of
Signature (notarized)
County of
On before me,
personally appeared
personally known to me (or proved to me on
the basis of satisfactory evidence) to be the
person(s) whose name(s) Ware subscribed
to the within instrument and acknowledged
to me that he/she/they executed the same
in his/heritheir authorized capacity(ies), and
that by his/her/their signatures(s) on the
instrument the person(s), or entity upon
behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal,
Notary Signature:
Notary Seal,
Paradies Storage Space No. 4 Agreement
Palm Springs International Airport
By
Name:
Title:
State of
Signature (notarized)
County of
On before me,
personally appeared
personally known to me (or proved to me on
the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged
to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and
that by his/her/their signatures(s) on the
instrument the person(s) or entity upon
behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
Notary Signature:
Notary Seal.
Exhibit "A"
(see attached)
Paradies Storage Space No. 4 Agreement
Palm Springs International Airport
8
Exhibit A
Palm Springs International Airpor
ParadieS Storage Space No, 4
Lower Level Terminal,
16 x 19 = 304SF
g
19 16
- -----------
9 p
Stora e Spam No. 4
-%,
9
SUPPLEMENTAL OFFICE SPACE USE AGREEMENT
THE PARADIES SHOPS, LLC
THIS SUPPLEMENTAL SPACE USE AGREEMENT, made and entered
into as of this day of 2009, by and between the CITY OF
PALM SPRINGS, a municipal corporation ("City") and PARADIES SHOPS, LLC,
a Georgia limited liability company a subsidiary of the THE PARADIES SHOPS,
a Georgia Corporation ("TENANT'),
RECITALS
A. City is the owner of the Palm Springs International Airport, ("Airport"), and
operates thereon the Palm Springs Airport Terminal building ("Terminal').
B. Tenant currently is party to Lease Agreement No. 4159 for Concessions at
the Palm Springs International Airport.
C. Tenant requires administrative office space landside in the Terminal
during the remaining term of Agreement No. 4159.
AGREEMENT
NOW, THEREFORE, in consideration of the promises of the parties
hereto and for good and valuable considerations, the receipt and sufficiency of
which is hereby acknowledged, City and Tenant agree as follows,
ARTICLE I
PREMISES, RIGHTS AND PRIVILEGES
City hereby offers to Tenant and Tenant takes from City, for its exclusive
use except as otherwise noted, certain demised premises located in the terminal
building, consisting of., Landside Office Space containing 140 square feet as
designated on Exhibit "A", attached hereto and made a part of this Agreement.
The demised premises may be used by Tenant as an administrative office that is
not open to the public.
ARTICLE II
TERM OF AGREEMENT
The term of this Agreement shall be for a period commencing on October
20, 2009 and terminating on October 31, 2012.
Paradies Office Space Agreement
Palm Springs International Airport
�. Q
ARTICLE III
RENTALS, FEES AND OTHER CHARGES
The rental rate for the Landside Office Space shall be computed at the
rate of $25.79 per square foot per annum and shall be $300.88 per month,
payable by Tenant to City, beginning on October 20, 2009 and the first day of
each month thereafter. The first payment for the month of October 2009 will be
prorated to $110.00 for the 11-day period. Rental Adjustments shall be based on
current City of Palm Springs Comprehensive Fee Schedule for Exclusive Use
Space (Conditioned) / Non Signatory.
ARTICLE IV
IMPROVEMENTS AND ALTERATIONS
No improvements, alterations or additions; other than those heretofore
installed or approved by City, shall be made upon the demised premises by
Tenant with the written consent of City being first obtained. City will move the
phone/data lines from the current Paradies Office site to the new Landside Office
at no cost to the Tenant at the beginning of the term.
ARTICLE V
MAINTENANCE AND OPERATION
Section 1. Utilities. City shall provide electricity to the storage space.
Section 2. Reoair 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 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. Garbaae and Other Refuse. Tenant shall provide a complete
and proper arrangement for the adequate, sanitary handling and disposal 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 an unsightly
or unsafe manner, on or about the demised premises, is forbidden.
Paradies Office Space Agreement 2
Palm Springs International Airport
ARTICLE VI
INSURANCE
It is agreed by the parties that the broad insurance provisions provided
under the Tenant's Lease agreement for Concessions No. 4159; a separate
agreement, would also apply to the additional space provided for herein.
ARTICLE VII
TERMINATION
Termination for Convenience. City may terminate this Agreement for its
convenience at any time, in whole or in part, by giving Tenant thirty (30) days
written notice thereof. Upon said notice, City shall pay Tenant those allowable
costs determined by the City, in its sole discretion, to be reasonably necessary to
effect such termination. Thereafter, Tenant shall have no further claims against
City under this Agreement.
Tenant may terminate this Agreement at any time by giving City thirty (30) days
written notice thereof.
In the event Tenant fails to vacate the demised premises within thirty (30) days of
written notice of termination of this Agreement given by either Tenant or City,
Tenant agrees to allow City to remove and dispose of any property belonging to
Tenant and shall reimburse City for the costs associated with said removal and
disposal. Thereafter, Tenant shall have no further claims against City under this
Agreement.
ARTICLE VIII
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:
Palm Springs International Airport
Executive Director of Aviation
3400 E. Tahquitz Canyon Way, Suite OFC
Palm Springs, CA 92262
Until written notice of change thereof has been given to Tenant.
Section 3. The mailing address of Tenant shall be:
The Paradies Shops, Inc.
5950 Fulton Industrial Blvd S.W.
Atlanta, Georgia 30336
Paradies Office Space Agreement
Palm Springs International Airport
3
Until written notice of change thereof has been given to City.
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 to execute and deliver this Agreement on
behalf of said party, (iii) by so executing this Agreement, such parry 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 this
party is bound.
(Signatures on next page)
Paradies Office Space Agreement
Palm Springs International Airport
E!
13
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:
,CrONTRACTOR: Check one, — Individual — Partnership Corporation
Corporations require two notarized signatures. one from each of the following: A. Chairman of Board,
President, or any Vice President: AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or
Chief Financial Officer.
By
Signature (notarized)
Name:
Title:
Stake of
County of
On before me,
personally appeared
personally known to me (or proved to me on
the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged
to me that helshe/they executed the same
in his/her/their authorized capacity(ies), and
that by his/her/their signatures(s) on the
instrument the pemcn(s), or entity upon
behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
Notary Signature,
Notary Seal:
Paradles Office Space Agreement
Palm Springs International Airport
By,
Name:
Title
State of
Signature (notarized)
County of
On before me,
personally appeared
personally known to me (or proved to me on
the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged
to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and
that by his/hedtheir signatures(s) on the
instrument the person(s), or entity upon
behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal
Notary Signature.
Notary Seal:
G
14
Exhibit "A"
(see attached)
Paradies Office Space Agreement
Palm Springs International Airport
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