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HomeMy WebLinkAbout1/5/2011 - STAFF REPORTS - 2.H. �0*P A L M SpP �Z c► k f tiCp `9� c4j'F°R CITY COUNCIL STAFF REPORT DATE: January 5, 2011 CONSENT CALENDAR SUBJECT: THE PARADIES SHOPS, LLC — SUPPLEMENTAL STORAGE SPACE AGREEMENT FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY This action will allow the short term lease of a small room to the Airport's gift and news shop concessionaire, The Paradies Shops LLC. RECOMMENDATION: 1. Approve Supplemental Storage Use Agreement with The Paradies Shops, LLC for 93 SF Storage Space #5 retroactive to December 1, 2010. 2. Authorized the City Manager to execute all necessary documents. STAFF ANALYSIS: The Paradies Shops, the Airport's terminal retail news and gift concessionaire, has a long-term agreement at Palm Springs International Airport. After recent inspections by the Health Department, Paradies had discovered that they will require additional storage space in order to comply with code requirements relevant to the inventory of consumable goods. Because of the immediate need to comply with the health code issue it was necessary for the airport to provide the space promptly, subsequently the agreement's effective date is December 1, 2010. This is only a short term agreement of less than a year until Paradise determines whether or not they will need to retain the space for the long term. The room is currently vacant and located under the Bono concourse. This agreement may be cancelled by either party with a 30-day written notice and the rates are consistent with the City of Palm Springs Comprehensive Fee of $20.06 per square foot per annum. ITEM NO. —�- City Council Staff Report January 5, 2011 — Page 2 Paradies Supplemental Storage Space Agreement The Airport Commission has approved this recommendation and the retroactive nature of this agreement at its December 15, 2010 meeting FISCAL IMPACT: The Supplemental Office Space Use Agreement will result in $1,088.29 of total additional revenue during the seven month term. Thomas W a , A.A.E. Executive Director David H. Ready City Manager Attachment: Paradies Supplemental Storage Space Use Agreement SUPPLEMENTAL STORAGE SPACE USE AGREEMENT THE PARADIES SHOPS, LLC THIS SUPPLEMENTAL SPACE USE AGREEMENT, made and entered into as of this First day of December 2010, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City") and PARADIES SHOPS, LLC, a Georgia limited liability company and 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 for the next seven months. AGREEMENT NOW, THEREFORE, in consideration of the promises of the parties hereto and for good and valuable consideration, 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 accepts 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. 5) containing 93 square feet as designated on Exhibit "A", 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 11 TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on December 1, 2010 and terminating on June 30, 2011. Paradies. Storage Space No. 5 Agreement t. Palm Springs International Airport ARTICLE III RENTALS, FEES AND OTHER CHARGES The rental rate for Storage Space No. 5 shall be computed at the rate of $20.06 per square foot per annum and shall be $155.47 per month, payable by Tenant to City, beginning on December 1, 2010 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 without the written consent of City first being obtained, ARTICLE V MAINTENANCE AND OPERATION Section 1. Utilities. City shall provide electricity to the storage space. 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 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 V1 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 and Tenant agrees to comply fully with those provisions. Paradies Storage Space No. 5 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 Vill 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 GFC 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 Paradies Storage Space No. 5 Agreement 3 Palm Springs International Airport 5 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 other Agreement to which this party is bound. (Signatures on next page) Paradies Storage Space No. 5 Agreement 4 Palm Springs International Airport �7 IN WITNESS WHEREOF,the parties have executed and entered into this Agreement as of the date first written above. ATTEST: CITY Or-PALM SPRING a municipal corporation By....-.-1- City Clerk City Manager APPROVED AS TO FORM, By: City Attorney CONTRACTOR. Check one: Individual -Partnership Garporatian 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: Signatdr otari ed) Signature(notarized) J1Name: 1, Name 1-itle: Tillw State of State of County of t County of o On a before me, On l�(-ajto before me, personally appeared�6 L'� personally appeared Amlae,-'L- personally known to me(or proved to me on personally known to me(or proved to me an the basis of satisfactory evidence)to be the the basis of satisfactory evidence)to be the person(s)whose name(s)is/are subscribed person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to the within instrument and acknowledged to me that he/she/they executed the same to me that he/she/they executed the same in his/her/their authorized capacity(fes),and in his/her/their authorized capacity(ies),and that by his/her/their signatures(s)an the that by his/her/their signatures(s)on the instrument the person(s),or entity upon instrument the person(s),or entity upon behatf of which the person(s)acted, behalf of which the person(s)acted, executed the instrument executed the instrument. WITNESS my hand ar�d official seal. WITNESS my hand and official seal. Notary Signature:A A L L--1,,A-IL,�' Notary Signature: Notary Seal: oaborah W.CMW Notary Seal: Deborah W.Croker Not6fy Pdk Notary PublIC Cd,",�tg Cou"W,GA CoWeta County,GA My ComMission Expires 6/8/" Paradies Storage Space No. 5 Agreement 5 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 �FOR B : Y City Attorney CONTRACTOR: 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: By: Signature(notarized) Signature(notarized) Name: Name: Title: Title: State of State of County of County of On before me, On before me, personally appeared personally appeared personally known to me(or proved to me on personally known to me(or proved to me on the basis of satisfactory evidence)to be the the basis of satisfactory evidence)to be the person(s)whose name(s)is/are subscribed person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to the within instrument and acknowledged to me that he/she/they executed the same to me that he/she/they executed the same in his/her/their authorized capacity(ies),and in his/her/their authorized capacity(ies),and that by his/her/their signatures(s)on the that by his/her/their signatures(s)on the instrument the person(s),or entity upon instrument the person(s),or entity upon behalf of which the person(s)acted, behalf of which the person(s)acted, executed the instrument. executed the instrument. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Signature: Notary Signature: Notary Seal: Notary Seal: Paradies Storage Space No. 5 Agreement 5 Palm Springs International Airport Exhibit "A" (see attached) Paradies Storage Space No. 5 Agreement 6 Palm Springs International Airport aradi Bono Lower Level Storage Space / F � C"T storage Space #5 Tx 13.3` = 93 SF E S .. C / 13. .. �'_u............... .......... f, 1- 10