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HomeMy WebLinkAbout2006-03-01 STAFF REPORTS 2N ;off p ALM Spy Iy c+ U N cA`'F°RN�P CITY COUNCIL STAFF REPORT DATE: MARCH 1, 2006 CONSENT CALENDAR SUBJECT: RENEWAL OF SUPPLEMENTAL SPACE USE AGREEMENT WITH PARADISE SHOPS, LLC FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY Airport staff is requesting approval to extend Paradise Shops' current supplemental lease for office space in the baggage claim area to October 19, 2009. The expiration of this supplemental lease will coincide with the expiration of Paradise Shops' concession agreement with the City. RECOMMENDATION: 1. Approve Minute Order No. approving Supplemental Lease Agreement with Paradise Shops, LLC for office space effective March 1, 2006 and valid until October 19, 2009. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: Representatives from the Paradies Shops, LLC have requested to retain the office space in the baggage claim area through the term of their concession agreement. Al. its regularly scheduled meeting, the Airport Commission recommended City Council approve this supplemental agreement with Paradise Shops, LLC. FISCAL IMPACT: IFinance Director Review: The rental rate for Suite A111.1 is $25.79 per square foot per annum or $245 per month for 114 square feet of office space. Item No. n . 1 A'V . City Council Staff Report March 1, 2006 -- Page 2 Supplemental Space Use Agreement Annually, we will receive $ ,940.00 for lease of this space. Richard S. Walsh, A.A.E., irector of Aviation T d}�Butzlaff,ff I i 'tant City Manager David H. Ready, City Ma>96F Attachments: Supplemental Space Use Agreement SUPPLEMENTAL SPACE USE AGREEMENT THIS SUPPLEMENTAL SPACE AND USE AGREEMENT, made and entered into as of this day of 2006,by and between the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California,hereinafter referred to as "CITY" and PARADIES SHOPS, LLC, a Georgia limited liability company a subsidiary of THE PARADIES SHOPS, a Georgia Corporation, hereinafter referred to as "TENANT". WTTNESSETM WHEREAS, CITY owns and operates an airport known as the Palm Springs International Airport, situated in the City of Palm Springs, County of Riverside, State of California, hereinafter referred to as"AIRPORT"; and WHEREAS, TENANT is operating at the Airport under separate agreement "Lease Agreement for Concessions", and wishes to utilize terminal office space at the Airport; and NOW, THEREFORE, for and in consideration of the premises, and of the covenants and conditions hereinafter contained,to be kept and performed, the parties hereto do agree as follows: ARTICLE I PREMISES.RIGHTS AND PRIVELEGES CITY hereby offers to TENANT and TENANT takes from CITY, for its exclusive use except as otherwise noted, certain premises located in the terminal building, consisting more particularly of the following,to-wit: Baggage Claim wing office space (Suite Alll.l) containing 114 square feet as designated on Exhibit"A", attached hereto and made a part of this Agreement. ARTICLE II TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on March 1, 2006 and terminating on October 19,2009. ARTICLE III RENTALS,FEES AND OTHER CHARGES The rental rate for Suite Al11.1 shall be computed at the rate of$25.79 per square foot per annum and shall be $245.00 per month, payable by TENANT to CITY, beginning on March 1, 2006 and the first day of each month thereafter. Rental adjustments shall be based on current Palm Springs Comprehensive Fee Schedule for Exclusive Use Space/Conditioned. ARTICLE IV IMPROVEMENTS AND ALTERATIONS No improvements, alterations or additions; other than those heretofore installed or approved by CITY, shall be made into upon the demised premises by TENANT without the written consent of CITY being first obtained. ARTICLE V MAINTENANCE AND OPERATION Section 1. Utilities: CITY shall maintain heating and air conditioning systems in good condition and repair. Section 2. Repair 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, except heating and air conditioning ducts and systems and utility maintenance, 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, away from the Airport 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; a separate agreement, would also apply to the additional space provided for herein. ARTICLE VII 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 P.O. Box 2743, Palm Springs, California 92263-2743,until written notice of change thereof has been given to Lessee. Section 3. The mailing address of TENANT shall be The Paradies Shops, Inc., 5950 Fulton Industrial Blvd. S.W.,Atlanta, Georgia 30336. 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 bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which this party is bound. CITY OF PALM SPRINGS ATTEST: a municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: By: City Attorney TENANT: Check one: _Individual_Partnership_Corporation Corporations require two notarized signatures, one from A and one from B: A. Chairman of Board, President, or any Vice President: and B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer). By: By: Signature(notarized) Signature(notarized) Name: Name: Title: Title: State of } State of } County of )ss County of }ss On 2006 before me, On 2006 before me, personally personally appeared appeared personally personally known to me (or proved to me on the known to me (or proved to me on the basis of basis of satisfactory evidence) to be the person(s) satisfactory evidence) to be the person(s) whose whose name(s) is/are subscribed to the within name(s) is/are subscribed to the within instrument instrument and acknowledged to me that and acknowledged to me that he/she/they he/she/they executed the same in his/her/their executed the same in his/her/their authorized authorized capacity(ies), and that by his/her/their capacity(ies), and that by his/her/their • signature(s) on the instrument the person(s), or signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) the entity upon behalf of which the person(s) acted, executed the instrument. acted, executed the instrument. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Notary Signature: Signature: Notary Seal: Notary Seal: o � o7'II i \ ® O NOTE: SHADED AREA REPRESENTS AVAILABLE LEASED SPACE �Q OF 114 SQUARE FEET. rn �o —1 z { a AREA OF BLOWUP I I { � I 1 I SURE { A111.1 I I I { ------------------� i MINUTE ORDER NO. AUTHORIZING APPROVAL OF SUPPLEMENTAL LEASE AGREEMENT WITH PARADISE SHOPS, LLC FOR OFFICE SPACE EFFECTIVE MARCH 1, 2006 AND VALID UNTIL OCTOBER 19, 2009. I HEREBY CERTIFY that this Minute Order, authorizing approval of supplemental lease agreement with Paradise Shops, LLC for office space effective March 1, 2006 and valid until October 19, 2009 was approved by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 1st day of March, 2006. JAMES THOMPSON City Clerk SUPPLEMENTAL SPACE USE AGREEMENT THIS SUPPLEMENTAL SPACE AND USE AGREEMENT, made and entered into as of this day of 2006,by and between the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California,hereinafter referred to as "CITY" and PARADIES SHOPS, LLC, a Georgia limited liability company a subsidiary of THE PARADIES SHOPS, a Georgia Corporation, hereinafter referred to as "TENANT". WITNESSETH: WHEREAS, CITY owns and operates an airport known as the Palm Springs International Airport, situated in the City of Palm Springs, County of Riverside, State of California, hereinafter referred to as"AIRPORT; and WHEREAS, TENANT is operating at the Airport under separate agreement "Lease Agreement for Concessions", and wishes to utilize terminal office space at the Airport; and NOW, THEREFORE, for and in consideration of the premises, and of the covenants and conditions hereinafter contained,to be kept and performed,the parties hereto do agree as follows: ARTICLE I PREMISES,RIGHTS AND PRIVELEGES CITY hereby offers to TENANT and TENANT takes from CITY, for its exclusive use except as otherwise noted, certain premises located in the terminal building, consisting more particularly of the following,to-wit: Baggage Claim wing office space (Suite A111.1) containing 114 square feet as designated on Exhibit"A",attached hereto and made a part of this Agreement. ARTICLE 11 TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on March 1. 2006 and terminating on October 19,2009. ARTICLE III RENTALS,FEES AND OTHER CHARGES The rental rate for Suite Al11.1 shall be computed at the rate of$25.79 per square foot per annum and shall be $245.00 per month, payable by TENANT to CITY, beginning on March 1, 2006 and the first day of each month thereafter. Rental adjustments shall be based on current Palm Springs Comprehensive Fee Schedule for Exclusive Use Space/Conditioned. ARTICLE IV IMPROVEMENTS AND ALTERATIONS No improvements, alterations or additions; other than those heretofore installed or approved by CITY, shall be made into upon the demised premises by TENANT without the written consent of CITY being first obtained. ARTICLE V MAINTENANCE AND OPERATION Section 1. Utilities: CITY shall maintain heating and air conditioning systems in good condition and repair. Section 2. Repair 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, except heating and air conditioning ducts and systems and utility maintenance, 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, away from the Airport 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; a separate agreement, would also apply to the additional space provided for herein. ARTICLE VII 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 P.O. Box 2743, Palm Springs, California 92263-2743, until written notice of change thereof has been given to Lessee. Section 3. The mailing address of TENANT shall be The Paradies Shops, Inc., 5950 Fulton Industrial Blvd. S.W.,Atlanta,Georgia 30336. ' 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, •(0-they aro-du13 authorized to execute and deliver this Agreement on behalf of said party(iii)by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the • entering into this Agreement does not violate any provision of any Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which this party is bound. CITY OF PALM SPRINGS ATTEST: a municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: By: City Attorney TENANT: Check one:_Individual_Partnership ✓Corporation Corporations require two notarized signatures, one from A and one from B: A. Chairman of Board, President, or any Vice President: and B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer,or Chief Financial Officer). By: u r By: Xov� � - Sin ature(notarized) Signature(notarized) Name:� +( pt"A' Name: �UVI ✓t1'C-L Title: P(mft 4- Title: CFO State of } State o f'oY.L_ } • County of }ss County of i�. }ss On _ 2006 before me, On a00 before me, • �J personally u 0k-personally appeared appeared r'.��//c personally personally known to`fn (or proved to me on the known to me (or proved to me on the basis of basis of satisfactory evidence)to be the person(s) satisfactory evidence) to be the person(s) whose whose name(s) is/are subscribed to the within name(s) is/are subscribed to the within instrument • instrument and acknowledged to me that and acknowledged to me that he/she/they he/she/they executed the same in his/her/their executed the same in his/her/their authorized authorized capacity(ies), and that by his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) the entity upon behalf of which the person(s) acted, executed the instrument. acted, executed the instrument. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Notary Signatu 1 Signatute7 UERam r. IDEBORAII W. CRORER NgTfY PeuijUiUl W,WTA COUNTY GA Np�fi}T i , �'' ,IC, COWETA COUNTY GA Not ea COMMISSION EXPIRES AUG 8,2006 MY COMMISSION EXPIRES AUG 8, 2006 o e Too O NOTE: SHADED AREA REPMENTSAVAILABLELEASEDSPACE �O OF 114 SQUARE FEET m AREA OF BLOWi}P II� f 4 SUTfE I� A117.1 I � ' I I I �