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HomeMy WebLinkAbout2006-01-04 STAFF REPORTS 2I tip ALMS,. �Z G+ V N c cq<+FoIt CITY COUNCIL STAFF REPORT DATE: January 4, 2006 Consent Agenda SUBJECT: APPROVE ASSIGNMENT AND ASSUMPTION OF A SUBLEASE OF A PORTION OF PROPERTY LEASED TO THE CITY AS PART OF BUSINESS LEASE NO. PSL-315 FROM THE SUITT REVOCABLE INTER VIVOS TRUST AND THE ARTHUR S. BLOCK AND KATHLEEN L. BLOCK REVOCABLE INTER VIVOS TRUST TO PS VENTURE CAB CABALLEROS/AMADO, LLC. FROM: David H. Ready, City Manager BY: Douglas Holland, City Attorney SUMMARY: The City's Sublessees for a portion of the land covered by Business Lease No. PSL-315 have requested City approval of a transfer of their rights and obligations to PS Caballeros/Amado LLC (a limited liability company of the Enterprise Company). Staff is recommending approval of the transfer subject to an Amended and Restated Sublease. RECOMMENDATION: 1) Adopt Minute Order No. , approving the proposed transfer of rights and obligations under the Sublease of a portion of Business Lease No. PSL-315 from the Suitt Revocable Inter Vivos Trust ("Suitt Trust") and the Arthur S. Block and Kathleen L. Block Revocable Inter Vivos Trust ("Block Trust") to PS Caballeros/Amado, LLC; and 2) Authorize the City Manager to execute an Assignment and Assumption of Sublease, Estoppel Certificate, an Amended and Restated Sublease, and such other documents as necessary to facilitate the transfer of rights in a form approved by the City Attorney. Consent to the proposed transfer shall be subject to PS Caballeros/Amado LLC's execution of an Amended and Restated Sublease. STAFF ANALYSIS: i The City is the Lessee of essentially three properties covered by its Business Lease No. PSL-315. The Suitt Trust and the Block Trust are the City's sublessees of one of the three properties, a vacant parcel of land, approximately 9.62 acres is size and generally located at the southeast corner of Avenida Caballeros and Amado Road. The Suitt and Block Trusts are proposing to sell their interest in this parcel of land to PS Venture Cabal leros/Amado (the Enterprise Company). Pursuant to the terms of its sublease Item No. 2.In City Council Staff Report January 4, 2006 -- Page 2 Suitt and Block Trusts with the City, the Suitt and Block Trusts are required to secure the City's consent to any assignment of their interests in this land. Staff is recommending that the City Council consent to the assignment so that the property can be conveyed to a developer for the development of the property. Pursuant to the terms of the Sublease, the property can only be developed for lawful purposes permitted under the City's zoning laws. The approval of this transfer does not affect the City's land use authority to review and approve, conditionally approve, or deny an application for development of all or a portion of the subleased property. Any proposal to develop this property will still be subject to all of the City's public hearing and land use review processes. In order to affect the transfer, several implementing documents may be necessary, including an Assignment and Assumption of Sublease, an Estoppel Certificate, an Amended and Restated Sublease, and appropriate escrow instructions. Staff is recommending that the consent to the transfer be made conditionally to the execution and approval of the Amended and Restated Sublease between PS Caballeros/Amado LLC and the City to establish an appropriate rent and payment schedule that will help cover the City's payment obligations under Business Lease PSL-315. Council approval of the consent will include authorization to the City Manager to execute these documents and such other documents as may be necessary for the transfer to be completed. r% •S FISCAL IMPACT: IFinance Director Review- Consent to the proposed transfer and approval of the amen ed and restated sublease will provide additional revenues to the City to enable the`C`ity to meet its lease payment obligations under Business Lease PSL-315. Dougl s Holland, ity Attorney Thomas WilsorU/Assistant City Manager David H. Ready, City M� er P Attachments: MINUTE ORDER NO. APPROVING THE TRANSFER OF RIGHTS UNDER THE SUBLEASE OF A PORTION OF BUISNESS LEASE NO. PSL-315 FROM THE SUITT AND BLOCK TRUSTS TO PS CABALLEROS/AMADO LLC AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS RELATED TO THE APPROVAL OF THE TRANSFER AS SPECIFIED. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order, 1) approving the proposed transfer of rights and obligations under the Sublease of a portion of Business Lease No. PSL-315 from the Suitt Revocable Inter Vivos Trust ("Suitt Trust") and the Arthur S. Block and Kathleen L. Block Revocable Inter Vivos Trust ("Block Trust") to PS Caballeros/Amado, LLC; and 2) Authorizing the City Manager to execute an Assignment and Assumption of Sublease, Estoppel Certificate, an Amended and Restated Sublease, Memorandum of Understanding and Supplemental Escrow Instructions, and such other documents as necessary to facilitate the transfer of rights in a form approved by the City Attorney, subject to the condition that PS Caballeros/Amado LLC's executes and the BIA approves the Amended and Restated Sublease, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 4th day of January, 2006, James Thompson, City Clerk