HomeMy WebLinkAbout2/6/2013 - STAFF REPORTS - 5E >O�Q A LM SpP
iy
O
V N
x x
x ~oO°rono`n' x
Cq<�FOit CITY COUNCIL STAFF REPORT
DATE: February 6, 2013 NEW BUSINESS
SUBJECT: APPROVE AMENDMENT NO. 1 TO THE LEASE AGREEMENT BETWEEN
THE CITY OF PALM SPRINGS AND THE COACHELLA VALLEY
ECONOMIC PARTNERSHIP (CVEP) FOR EXPANSION OF THE
COACHELLA VALLEY INNOVATION HUB (CVIHUB) ACCELERATOR
CAMPUS LOCATED AT 2901 EAST ALEJO ROAD AND AMENDMENT
NO. 2 TO THE ADMINISTRATIVE SERVICES AGREEMENT.
FROM: David H. Ready, City Manager
BY: Community & Economic Development
SUMMARY
The City Council will consider an amendment to the lease and administrative agreement
with the Coachella Valley Innovation Hub to provide funding and an additional 3,500
square feet of space to the Accelerator Campus at the Palm Springs International Airport.
RECOMMENDATION:
1. Approve Amendment No. 1 to the Lease Agreement between the City of Palm Springs
and CVEP to add Building 5, consisting of 3,500 s/f.
2. Approve Amendment No. 2 to the Administrative Services Agreement between the
City of Palm Springs and CVEP to add rental fee for Building 5.
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The Coachella Valley Innovation Hub (CViHub) Program is a regional partnership
between the cities of Palm Springs, Desert Hot Springs and Cathedral City, managed by
the Coachella Valley Economic Partnership (CVEP), and focused on growing and
mentoring start up companies, primarily in the renewable energy and clean/green
technology industries.
On October 17, 2012, the City Council approved a Lease Agreement and an amendment
to the Administrative Services Agreement with CVEP, to oversee the second phase
incubator ("Accelerator Campus"), located in portions of the City-owned Airport. The
original leased premises consist of three buildings totaling 9,840 s/f of space specifically
for CViHub clients to conduct research and development, prototype and
commercialization of products or services.
ITEM NO. ��'
City Council Staff Report
(February 6, 2013)-- Page 2
(CViHub Lease Amendment No.1)
The Accelerator Campus is fully funded by the City of Palm Springs.
The significant success of the CViHub presents an opportunity to expand services for
CViHub clients who need larger work space to further test and develop their products or
services, but who could still benefit from CViHub support and services. The Lease
Amendment adds more space at the Accelerator Campus, which is needed for iHub client
use. The additional space will accommodate a specific iHub client engaged in new wind
turbine development.
The proposed Lease Amendment adds Building 5 to the Accelerator Campus (originally
Buildings 3, 12 and 13), an additional 3,500 square feet to the Accelerator Campus and
an increase in the monthly rental fee of $840.00, raising the monthly rent from $2,361.60
to $3,201.60. The Amendment will add Building 5 (3,500 s/f) for an overall total of 13,340
square feet)
FISCAL IMPACT:
The City appropriated $75,000 for the creation of the CViHub Accelerator Campus in
Fiscal Year 2012-13. The current funds appropriated are allocated to $45,000 for tenant
improvements for Buildings 3, 12 and 13, and $30,000 is paid as rent to the Airport.
No further tenant improvements are required for Building 5.
The proposed rent increase in the amount of $10,800, will be paid from a $30,000
CViHub SBA/SBDC Grant received in fiscal year 2011-12.
It is anticipated next year, and in future years, CVEP will request the annual base of
$38,500 rent will be paid by the City. This would be a continuing and on-going General
Fund expenditure. The tenant improvements are a one-time cost.
The other iHub cities of Cathedral City and Desert Hot Springs contribute to the iHub
Program but not the Accelerator Campus.
ion ymo , Director Cathy Van H rn, Administrator
o unity Economic Development Community & Economic Development
David H. Ready, City Manager
Attachments: Amendment No. 1 to Lease Agreement 02
Amendment No. 2 to Administrative Services Agreement
Amendment No. 1
Lease Agreement
City of Palm Springs (Lessor) and
Coachella Valley Economic Partnership (Lessee)
The Lease between the City of Palm Springs and the Coachella Valley Economic
Partnership, executed on November 9, 2012 shall be amended as follows:
1.1 Property: The "Property" shall refer to that certain real property consisting of four
buildings totaling approximately 13,340 square feet, located in the County of Riverside,
State of California, as more particularly described in Exhibit "A": hereof together with the
improvements located thereon as depicted on the Plot Plan attached as Exhibit "B" hereof.
1.2 The Premises: The Premises shall consist of that certain portion of the building, as
defined, herein, including all improvements therein or to be provided by Lessor under the
terms of this Lease, and commonly known as 2901 East Alejo Road, located in the City of
Palm Springs, County of Riverside, State of California, also identified as a portion of
Assessor Parcel Number 502-100-029 and generally described as two modular office
spaces (Building 12 & 13) consisting of approximately 1,920 square feet, one
warehouse/manufacturing structure (Building 3) consisting of approximately 6,000 square
feet, and a service garage structure (Building 5) consisting of approximately 3,500 square
feet, all as shown on the plot plan attached as Exhibit "B".
1.5 Monthly Rent: Rental payment shall be $3,201.60 per month for the space exclusively
used by Lessee. Common area spaces such as landscape and parking areas shall not be
included as part of the square footage calculation for the period of the term.
All other terms and conditions remain the same.
IN WITNESS WHEREOF, the parties have duly executed this Lease Amendment No. 1
together with the herein referred to Exhibits which are attached hereto, on the day and year
signed below.
"Lessor' "Lessee"
CITY OF PALM PSIRNGS, a Municipal Coachella Valley Economic
Corporation Partnership
By: By:
Its: Its:
ATTEST: APPROVED AS TO FORM:
By: By:
James Thompson, City Clerk Douglas Holland, City Attorney
Date: 03
i
i
EXHIBIT W
LEGAL DESCRIPTION OF THE PREMISES
Location and Address:
2901 East Alejo Road, Palm Springs, California, 92262. These buildings are located on
property of the Palm Springs International Airport.
Assessor's Parcel Number.-
Portion of 602-100-029
Legal Description:
A portion of 3.25 acres M/L in POR LOTS 1,2 & 3 MB 014/652 SD PALM VALLEY
j COLONY LANDS
OwnershipNesting:
City of Palm Springs
LEGAL DES ON OF MWWM
04
EXHIBIT"B"
CViHub Accelerator Campus 2901 E. Alejo Road, Palm Springs, CA 92262
Building# :Facility Type 'S/F Description
-- — --
Concrete tilt up built in1961,clear height of 14 w/roll up delivery
1 Warehouse 9 600 door
2 `Small office 640 Admimstrative office
__'' ioF1r _. �r00 -. A:n� ...,intett�llce,
4 Lunch Room 640 Employee lounge-break room M&W restroom-nonconforming
MR
y31,di,PIN 5 v ayl y,� O
M10000'. Ft)ry'$4�1sE E Iu&- 7�r�14 dp, .y+ttth
.. , �'95.. --_at' �i ,i„ff3b' ,.��.a�' .. E.tI�iitll' "i3��:.......I
6 Storage building �2,100 Storage building (to be removed)
8 Small Warehouse 1,800 Small warehouse storage building
9 _ Welding Shop 960 Welding shop
— — - — .
Concrete tilt-up built in 1999 w/freezer&cooler.25'clear ceilings
10 Cold Storage Facility :12,487 and 30'column spacing.Truck well,small office.
_.
6ma ce t920 .` C)€6cebutdmg-divide nto2 ays enspaee
Eru ' -ff6U1 },.
�9jI n.�t, .......: I .,..,_ ... "*Ii9t,....r..��§.-- r�..:� .......p�T;1iq 1 n:. �. ._., .. ai _:.: �� ...: , p ... a.
28 Print-Graphics Shop �2,240 Print shop facility,open space with some divided office space
Available Sq.Ft. _ 43,807 ,Once building 6 removed total square footage=41,707_s/f
6 Remove building -2,100
Actual Available Sq.F� _
£t : :f1 t 140'm..: .- 2 m:. Sff 6tdtsft(t-$3� 1;s - w<i19Yaar%jc1a
05
EXHIBIT"B"
Exhibit "B"
PARCEL #35 FACILITY & SITE DIAGRAM
GO
t �
IF
C» cti ri It
Cv C4
. �, oU.
v $
� riC+S -q:"i a ct;6vjV6vq c r
*Parcel#35 has been reduced from 4.67 Ac to approximately 3.25 Ac(1.25 Ac for buildings#3,#12,
). The
1.42 acres is sectioned off for other purpose at the airport. The remaining 2 acres is allocated for the remaining
buildings. Storage sheds#6&7 are to be tom down.
Dozier Appraud Comp-y fl 6
Palm Desert,California
7
COACHELLA
4 Hvub
�RNtp,
CITY OF PALM SPRINGS
COACHELLA VALLEY
ECONOMIC PARTNERSHIP
Amendment No. 2 to an
Administrative Services Agreement
July 1, 2011 to June 30, 2013
Addition of an "Accelerator Campus" to the
Operation and Management
of the
Coachella Valley Innovation Hub
(CViHub)
1 07
AMENDMENT NO. 2 TO AN ADMINISTRATIVE SERVICE AGREEMENT
This Amendment No. 2 to an Administrative Service Agreement ("Agreement") is made
this day of , 2013 between City of Palm Springs ("City") and the
Coachella Valley Economic Partnership ("CVEP").
The City and CVEP, hereafter referred to as the "Parties", hereby amend the Agreement
as follows:
Section "3" CVEP Obligations and Responsibilities shall be amended and
restated to include the following:
F.2. Phase II Incubator (Accelerator Campus)
CVEP shall lease from the City four (4) buildings totaling 13,340 s/f located at 2901 East
Alejo Road for the Accelerator Park. These four (4) buildings have been identified as
suitable incubator space. Two of the three buildings are modular in construction. A plot
plan of the site showing the four (4) buildings is included as Attachment "B" to this
Amendment.
Section "4" City Funding shall be amended and restated to include the following:
4. City Commitment
The City of Palm Springs has appropriated the amount of $75,000 during the City's
2012-2013 budget process for the rental and tenant improvements for the CViHub
Phase II Program (Accelerator Campus) for Buildings 3, 12, & 13. The City shall
appropriate an additional $10,080.00 for the increase in square footage due to the
addition of Building 5 (3,500 s/f). This funding is intended to cover the first year's lease
cost plus a substantial portion of the early phases of the building tenant improvements.
In addition, to the extent resources are available, the City, which includes the Palm
Springs International Airport, shall also provide the following:
• Waiver of Development Fees for the project;
• Demolition of Buildings 6 & 7 (shed) and repair of the shed's base (foundation)
and slope to meet ADA requirements;
• Replace/repair roof and HVAC system, if necessary;
• Perimeter landscape cleanup and regular maintenance;
• Separate SCE, water, gas meters per building to allow individual building
metering (or, alternatively, a single meter for the three buildings).
11. Modification:
Except as otherwise provided herein, the Administrative Service Agreement shall be
and remain unmodified and in full force and effect.
2 08
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 to An
Administrative Service Agreement as of the dates stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST:
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
"CVEP"
Coachella Valley Economic Partnership
Date: By:
Thomas Flavin
President/CEO
3 0o
Exhibit "B"
PARCEL#35 FACILITY & SITE DIAGRAM
i !
r D
i
iJ- yLLy,, LL tL. LL 1L LL LL U-
go
fr/ W M I cli .-z ez N y
. f eP
CO
E gill
cLLd
layw
TH2
� ry vs V': 'i ad 0i a
i
i
i
E
*Parcel#35 has been reduced from 4.67 Ac to approximately 3.25 Ac(1.25 Ac for buildings#3,#12,
). The
1.42 acres is sectioned off for other purpose at the airport. The remaining 2 acres is allocated for the remaining
buildings. Storage sheds#6&7 are to be tom down.
DozinAFprolyd Comprvry '. Q
Patm Deeem Caljfomta
7