HomeMy WebLinkAbout9/16/2015 - STAFF REPORTS - 2.L. ppLM Sa
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c "a"P CITY COUNCIL STAFF REPORT
DATE: September 16, 2015 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 1 TO THE LEASE AGREEMENT WITH
THE AGUA CALIENTE CULTURAL MUSEUM, A NON-PROFIT
ORGANIZATION, FOR USE OF THE CITY OWNED PROPERTY
LOCATED AT 219 SOUTH PALM CANYON DRIVE FOR THE PURPOSE
OF CULTURAL EXHIBITIONS AND EDUCATION.
FROM: David H. Ready, City Manger
BY: Community & Economic Development Department
SUMMARY
The City Council will consider an amendment to the Lease Agreement for use of the
City owned property at 219 South Palm Canyon Drive at the Village Green by the Agua
Caliente Cultural Museum, a non-profit organization. The approval of Amendment No. 1
to the Lease Agreement will allow the Cultural Museum to use the facility for an
additional three (3) years with an option to extend the lease term for two (2) years, for
the purpose of operating a museum to promote the history and culture connected with
the Agua Caliente Band of Cahuilla Indians.
RECOMMENDATION
1) Approve Amendment No. 1 to Agreement No. A5961 with Agua Caliente Cultural
Museum in the amount of $680.40 per month, for non-exclusive use of the City
owned property at 219 South Palm Canyon Drive for the purpose of promoting
cultural education, for three (3) years and an option to extend for two years at the
mutual consent of both parties.
2) Authorize the City Manager or his designee to execute all the necessary
documents, subject to review and approval of the City Attorney.
BACKGROUND
The Agua Caliente Cultural Museum has leased the space at the Village Green from the
City since 1992 for the purpose of operating a museum. In 1991, when the museum
ITEM NO.
City Council Staff Report
September 16, 2015--Page 2
Agua Caliente Cultural Museum, Village Green Lease Agreement
was established, it did not have an operating facility; in April of 1992 the Museum
established itself at this site.
The Agua Caliente Cultural Museum desires to renew the Lease Agreement with the
City, for use of this property. The Museum has leased the property and paid the City
rent based on the amount established in the current lease agreement. The current
lease has a monthly rental rate of $680 per month.
Staff recommends entering a new three (3) year lease agreement with a rental rate of
$680 per month (adjusted annually by the Consumer Price Indexes Pacific Cities and
U.S. City Average Table) and an option to extend the lease term for a period of two (2)
years. The lease will continue to allow the Museum to continue to operate in an efficient
manner promoting the culture and history of the Agua Caliente Band of Cahuilla Indians
to tourists and the local community.
FISCAL IMPACT
The Lease Agreement would provide the City revenue of $680 per month. The lease
provides that the Museum pay the cost of their individual utility expenses.
Jennif4Henliing ames Thompson
Arts an Special Projects Coordinator Chief of Staff
David H. Ready, Esq., .
City Manager
Attachments:
Agua Caliente Cultural Museum Lease Agreement
Amendment No. 1 to Lease Agreement
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AMENDMENT NO. 1 TO LEASE FOR
219 S. PALM CANYON DRIVE
"VILLAGE GREEN" PREMISES
This Amendment No. 1 ("Amendment") to Lease Agreement for, 219 S. Palm
Canyon Drive at the "Village Green" is hereby entered into this I" day of July, 2015, by and
between the City of Palm Springs, a California charter city and municipal corporation,
("City"), and the Agua Caliente Cultural Museum ("Tenant").
Recitals
1. On July 1, 2010 the Community Redevelopment Agency of the City of Palm
Springs ("Agency") and Tenant entered into a Lease ("Lease") by which the Tenant leased
from the Agency certain spaces in and around the Agency's "Village Green" at 219 S. Palm
Canyon Drive ("Village Green"), for a term of five (5) years, ending on June 30, 2015, on
terms and conditions specified therein. The Tenant requests to renew the Lease term for an
additional three (3) years with an option to renew for an additional two (2) years.
2. In 2011, the "Village Green" Premises was transferred from the Agency to
the City, subject to the terms of the Lease.
3. The City and Tenant desire to extend the term of the Lease for an additional
three (3) year period to expire July 1, 2018 with an option to renew for an additional two (2)
years.
NOW, THEREFORE, the City and Tenant hereby agree as follows:
Agreement
1. The term "Agency" as it appears throughout the Lease shall mean the City of
Palm Springs.
2. Section 1.2 of the Lease shall be revised to read as follows:
"Lease Commencement Date. The Lease shall commence July 1, 2015. Lease Term:
Three (3) years. Lease Termination Date: June 30, 2018 with an option to renew for an
additional two (2) years, at the mutual consent of both parties.
3. Section 1.3 of the Lease shall be revised to read as follows:
"Rental. Tenant shall pay Agency SIX HUNDRED EIGHT DOLLARS AND
FORTY CENTS ($680.40) ("Rent") per month, with Tenant to pay all operational, utility and
maintenance cost necessary to operate the Premises in accordance with the maintenance
standards of Section 5.3 and the other provisions of the Lease. Upon each annual anniversary
date of the Commencement Date, monthly rental shall be adjusted in proportion to the
published changes in the Consumer Price Index ("CPI") for, All Items, for the Riverside/San
Bernardino Metropolitan Statistical Area. Notwithstanding the foregoing, at the City's sole
discretion the Property may be reappraised to establish a new base Purchase Price every year
on the Commencement Date. The reappraised purchase price shall be adopted in lieu of the
annual CPI adjustment for that year.
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4. All other provisions of the Lease shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have duly executed this Amendment on the
date first set forth above.
AGUA CALIENTE CULTURAL THE CITY OF PALM SPRINGS
MUSEUM("Tenant') ("City")
By: By:
Michael Hammond David Ready, Esq., Ph.D
Executive Director City Manager
Attest:
James Thompson
City Clerk
Approved as to Form:
Douglas C. Holland
City Attorney
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