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HomeMy WebLinkAbout5/5/2010 - STAFF REPORTS - 2.L. �O ppLM S''k r� u in H pY �Abatit C'0t/FORN�p COMMUNITY REDEVELOPMENT AGENCY STAFF REPORT DATE: May 5, 2010 CONSENT CALENDAR SUBJECT: APPROVE AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA INDIANS (TENANT) AT THE PALM SPRINGS VISITOR INFORMATION CENTER LOCATED AT 2901 NORTH PALM CANYON DRIVE FROM: David H. Ready, Executive Director BY: Community Redevelopment Agency of the City of Palm Springs, Community and Economic Development Department SUMMARY Approve agreement with the Agua Caliente Band of Cahuilla Indians (Tenant) to include additional negotiated terms to the Lease Agreement that was approved by the Agency on November 18, 2009. The additional terms would allow the Agency to reimburse the Tenant for interior improvements at the Palm Springs Visitor Information Center through forgiveness of monthly rental payments in an amount not to exceed $30,000. RECOMMENDATION: 1. Approve Agreement No. A5917, with the Agua Caliente Band of Cahuilla Indians, for non-exclusive use of the Agency owned Visitor Information Center at 2901 North Palm Canyon Drive for the purpose of promoting tourism. 2. Authorize the Executive Director or his designee to execute all necessary documents. STAFF ANALYSIS: On November 18, 2009, the Community Redevelopment Agency of the City of Palm Springs (Agency) approved the Lease Agreement (A5917) between the Agency and the Agua Caliente Band of Cahuilla Indians (Tenant) for use and operation of an information desk located inside the Agency's Visitor Information Center at 2901 North Palm Canyon Drive. Since the time of this lease approval, both parties have recognized a need to make modifications to the internal appearance of the information desks as well as to the 1 ITRA NO. � V Community Redevelopment Agency Staff Report May 5, 201 O—Page 2 Agua Caliente Band of Cahuilla Indians-Visitor's Center Agreement interior layout of the building. The scope of work is defined by the site plan approved by both parties. The scope of work is expected to occur over a five to seven day period to be mutually agreed upon by both parties but is expected to occur during the month of July, upon which time the Visitor's Center will be closed. The cost of the interior modifications, including the design, demolition, and reconstruction is estimated at $30,000. These costs would be initially paid by the Tenant. The Tenant would be reimbursed the final cost of these modifications via forgiveness of the monthly rent as defined in the Lease Agreement until the full amount of the final cost of the modifications is fully offset. Excluded from the Agency's reimbursement will be the design, urchase installation purchase, maintenance, repair and future removal of graphics to be placed on the walls immediately behind the two primary information desks. These costs will be solely borne by the Tenant. The Tenant will be reimbursed up to a maximum of $30,000 regardless of the final cost of the improvements. Due to the fact that the Lease Agreement approved by the Agency on November 18, 2009 was not completely executed when these additional terms were being negotiated, for cleaner recordkeeping purposes, the Lease Agreement has been revised to include these additional terms. Therefore, no formal amendment to the lease will be necessary. FISCAL IMPACT: The approval of this agreement will result in reduction in rental revenue from Tenant's rent of the space at the Visitor's Center in the amount of $1,000/month over a period of thirty months or less. Diana Shay Tom Wilson Redevelopment Coordinator Assistant Executive Director David H. Ready, Exec irector Attachments: 1) Exhibit A — Additional Terms of Lease Agreement between Agency and Tenant Q� EXHIBIT A Additional Terms of Lease Agreement between Agency and Tenant 03 ADDITIONAL TERMS OF LEASE AGREEMENT BETWEEN COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND AGUA CALIENTE BAND OF CAHUILLA INDIANS 1. The interior space plan of the Visitor Information Center will be modified to create greater flow inside the Center to better accommodate visitors for the benefit of both parties. The scope of work is defined by the site plan approved by both parties and includes, but is not limited to, construction of two enclosed areas one each on the north and south ends of the Center; removal of and re-construction of dividing walls currently located behind the two service desks; relocation of utilities as needed to serve enclosed areas and service desks; relocation of two service desks; and preparation and clean up of the construction area. 2. The two primary information desks (one for use by Tenant and one for use by Agency) will be relocated, and the desks and the walls immediately behind the desks will be "wrapped" with graphics of a design mutually agreeable to both parties. The full cost of the design, purchase, install, maintenance, repair and future removal of these graphics will be borne by the Tenant. 3. The scope of work is anticipated to occur over a five to seven day period to be mutually agreed upon by both parties but is currently expected to be Tuesday, July 6, 2010 through Monday, July 12, 2010, during which time the Visitor Center will be closed. 4. The cost of the interior modifications, including the design, demolition and re- construction is estimated at approximately $30,000.00. These costs will initially be paid by the Tenant. The final cost of these modifications will be reimbursed to the Tenant via forgiveness of the monthly Rent as defined in the lease agreement until the full amount of the final actual cost of the modifications, excluding the cost of the graphics described in item number two above, is fully offset. 5. Should the parties agree to terminate the lease prior to repayment of the costs described in item number three (3) above, the Agency shall reimburse Tenant for these costs within 90 days of such termination. 04