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HomeMy WebLinkAbout7/30/2008 - STAFF REPORTS - RA.4. QpLMSa Z 4� u n Community Redevelopment Agency i hco `oe wx RROenico cq�r�o ��P Staff Report DATE: July 30, 2008 Consent Agenda SUBJECT- APPROVE LEASE AGREEMENT WITH BOYS AND GIRLS CLUB FROM: David H. Ready, Executive Director BY: Douglas Holland, Agency Counsel SUMMARY The Board of Directors of the Redevelopment Agency will consider approval of a new lease with the Boys and Girls Club for the lease of a building at Sunrise Park. RECOMMENDATION: Approve and authorize the Executive Officer to execute a lease agreement with the Boys and Girls Club of Palm Springs, Inc, for the lease of property at Sunrise Park. STAFF ANALYSIS: The Boys and Girls Club of Palm Springs have leased a portion of Sunrise Park for its community operations since 1958. The Boys and Girls Club desires to continue with its lease at its current location so that it may continue to provide services to Palm Springs Youth. The Club proposes to continue to rent the property for $1.00 per year and lease the property through June 30, 2040. The Club provides sports and social activities that benefit the youth of Palm Springs and the Club augments and supplements the services the City's Parks and Recreation Department provides. FISCAL IMPACT The proposed agreement continues the current relationship; therefore, there is no new fiscal impact created by the approval of the lease. Douglas'Holland, Agency Counsel David H. Ready, Executive Director Attachment: Lease Agreement Item No. RA''/� . LEASE OF REAL PROPERTY BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND THE BOYS AND GIRLS CLUB OF PALM SPRINGS, INC. WHEREAS, on January 27, 1958, the City of Palm Springs leased a portion of the former Polo Grounds, now known as Sunrise Park, to the Club of Palm Springs, Inc. for twenty-five (25) years with an option to renew for twenty-five (25) years; and WHEREAS, on December 5, 1961, additional land adjacent to the parcel leased above was leased to the Club to locate swimming pool equipment; and WHEREAS, on June 7, 1965, an additional adjacent parcel was leased to the Club for ten (10) years for general recreation usage; and WHEREAS, on June 20, 1990, the City of Palm Springs desired to make improvements on City land, including portions of the land leased to the Club and the Club had no need for those portions of the leasehold interests on which City improvements are planned; and WHEREAS, the Boys & Girls Club, the successor to the Club, desires to put an addition onto an existing building, thereby requiring that an additional adjacent parcel be added to the current leasehold interests; and WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, the successor to the City of Palm Springs, desires to approve a new leasehold agreement to accommodate the Boys & Girls Club. NOW THEREFORE, the Boys & Girls Club of Palm Springs, Inc., hereinafter referred to as "Club," and the Community Redevelopment Agency of the City of Palm Springs, hereinafter referred to as "Agency," agree as follows: 1. The leases between the Club and the City of Palm Springs dated January 27, 1958, December 5, 1961, June 7, 1965, and June 20, 1990 are hereby cancelled. 2. The Agency hereby leases to the Club the real property hereinafter described under the following terms and conditions: a. PREMISES. Agency leases to Club a certain parcel of real property situated at 450 South Sunrise Way in the City of Palm Springs, County of Riverside, State of California. The legal description of said parcel is attached hereto as Exhibit "A" and incorporated herein by this reference. b. TERM. The term of this lease shall be from the execution date until June 30, 2040, unless terminated earlier under subsections n. or p. of this Section. Boys & Girls Club- Lease Agreement 1 000092 C. RENT. The Club agrees to pay to the Agency as rental for said premises the sum of One Dollar ($1.00) per year, first payment payable on the date of execution of this lease agreement, and thereafter on the 15th day of January of each succeeding year. d. USE. The purpose of this lease is to provide for the use of said premises by Club for operating thereon a building and other facilities for use as a Club to promote the physical, mental, and moral welfare of boys and girls of the City of Palm Springs. No activities shall be conducted upon the leasehold by any minor at any time without adult supervision, said supervision being in accordance with rules and regulations of the Club of Palm Springs. e. MAINTENANCE. The facilities on the leasehold site shall be continually maintained by the Club at standards that will maintain the health and safety of the users of the facilities. In addition, the exterior portions of the building and the appurtenances thereto, shall be maintained so as to show no signs of dilapidation. The Club shall immediately paint or make repairs in accordance with the written order of the Executive Director and within the time prescribed by the Executive Director and the Club may, within ten (10) days of such order, request the Agency Board of Directors to review such order. The Agency Board of Directors' finding shall be final. It is expressly understood that the Agency shall in no way be expected to contribute to the construction or other maintenance of the building facilities or appurtenances thereto. The ground on the west side of the building and lying north of the south curb line of the parking lot on the north side of the building within the leasehold premises will be maintained by the Agency. All remaining grounds within the leasehold premises will be maintained by the Club; in addition, the cost of operation of the facilities is solely that of the Club. t. HOLD HARMLESS. Club agrees to indemnify, defend, and hold Agency harmless from and against all liability for injuries to persons or damage to property caused by Club's negligent use or occupancy of the premises; provided, however, that Club shall not be liable for any injury, damage or loss occasioned by the sole negligence of Agency, its agents or employees; and provided further that Agency shall give to Club prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly, contingently, or otherwise, affects or might affect Club, and Club shall have the right to compromise and defend the same to the extent of its own interest. g. INSURANCE. Club shall procure and maintain at its sole cost and expense, in a form and content satisfactory to Agency during the entire term of this lease agreement including any extension thereof, the following policies of insurance; (1) Commercial General Liability Insurance. A policy of commercial general liability insurance written on a per occurrence basis Boys & Girls Club-Lease Agreement 2 oaa6r3 with a combined single limit of at least $2,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent Clubs, broadform property damage, products and completed operations. The General Liability Policy shall name the Agency and the City of Palm Springs as an additional insured in accordance with standard ISO additional insured endorsement form CG2010(1185) or equivalent language. (2) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which will include $2,000,000 employer's liability- (3) Business Automobile Insurance. A policy of business automobile insurance written on a per occurrence basis with a single limit liability in the amount of$2,000,000 bodily injury and property damage. All of the above policies of insurance shall be primary insurance and shall name the City, Agency, and its officers, employees and agents as additional insureds. The insurer shall waive all rights of subrogation and contribution it may have against the Agency, its officers, employees and agents and their respective insurers. In the event any of said policies of insurance are canceled, the Club shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Agency. No work or services under this Agreement shall commence until the Club has provided the Agency with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverage and said Certificates of Insurance or binders are approved by the Agency. The Club agrees that the provisions of this Section shall not be construed as limiting in any way the extent to which the Club may be held responsible for the payment of damages to any persons or property resulting from the Club's activities or the activities of any person or persons for which the Club is otherwise responsible. (4) The Club agrees to increase the minimum limits of its insurance policies required by this Section every five (5) years on January 15t, beginning January 1, 2012. Such increase shall be equal to the cost of living adjustment adopted by the State of California for the year in which the minimum insurance limits are increased under this Section, commencing with the cost of living adjustment for the year 2012. h. NOTICE TO AGENC_Y_INSURANCE COVERAGE CHANGE. The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier for non-payment of premiums or otherwise without thirty (30) days prior written notice of amendment or cancellation to the Agency. In the event that said insurance is cancelled, the Club shall, prior to the cancellation date, submit Boys & Girls Club-Lease Agreement 3 000004 to the Assistant Secretary new evidence of insurance in the amounts heretofore established. I. EVIDENCE OF INSURANCE. A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the Agency's Risk Management Officer shall be submitted to the Agency prior to execution of this agreement on behalf of the Agency. j_ THE CLUB — AN INDEPENDENT CLUB. It is understood and agreed that the Club is, and at all times shall be, an independent Club and nothing contained herein shall be construed as making the Club, or any individual whose compensation for services is paid by the Club, an agent or employee of the Agency, or authorizing the Club to create or assume any obligation or liability for or on behalf of the Agency. k. RIGHT OF ENTRY. The premises shall at all reasonable times be open to proper governmental authorities and agents or employees of the Agency for inspection. I. ASSIGNMENT AND SUBLETTING. Club shall not assign this lease or any part thereof nor sublet said premises or any part thereof without the written consent of Agency first had and obtained. M. COMPLIANCE WITH LAWS AND PECULATION& Club agrees to maintain and operate the premises in compliance with all municipal, county and state laws applicable thereto. n. TERMINATION BY AGENCY. Time is of the essence of this lease and in the event that the Club fail to maintain or operate the premises thereon in strict accordance with the provisions of this lease, the said failure shall be cause for the Agency to terminate the lease and to take immediate possession of the building, facilities and appurtenances thereto. Prior to termination, the Agency shall first provide the Club with notice in writing stating the defects or omissions and giving Club thirty (30) days in which to commence to correct said defects or omissions. If such defects or omissions are not corrected within this timeframe, this lease shall automatically terminate. Upon termination for any reason, or at the expiration of this lease, the Agency shall be empowered to take immediate possession of the premises and remove all unauthorized persons therefrom. It is expressly understood that upon termination the premises and improvements shall become the property of the Agency without payment to the Club. o. NONDISCRIMINATION. Lessee covenants for itself, its heirs, executors, administrators, and defines, and all persons claiming under or through it, that this lease is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on the account of race, color, creed, religion, sex, age, national origin, Boys & Girls Club— Lease Agreement 4 000655 ancestry, political affiliation, or physical handicap associated with the construction, operation and maintenance of the premises. P. CONDEMNATION. In the event of condemnation by any condemning authority, or a transfer in lieu thereof results in a taking of any portion of the Premises, Agency may, or in the event a condemnation or a transfer in lieu thereof results in a taking of twenty-five percent (25%) or more of the Site, Club may, upon written notice given, thirty (30) days after such taking or transfer in lieu thereof, terminate this Lease. Club shall not be entitled to share any portion of the condemnation award with the exception that if the condemnation occurs when there is five (5) years or greater remaining on the Term, the Club shall be entitled to recover fifty percent (50%) of the documented costs for constructing the facility, and Club hereby expressly waives any right or claim to any part of the award separate from that cost reimbursement. Club shall, in addition, have the right to claim and recover, only from the condemning authority, any amounts necessary to reimburse Club for the Cost of removing its furniture, equipment and merchandise. If this Lease is not terminated as above provided, Agency shall use a part of the condemnation award to restore the Site. MADE AND ENTERED INTO by the parties hereto this day of 2008. COMMUNITY REDEVELOPMENT BOYS AND GIRLS CLUB OF PALM AGENCY OF THE CITY OF PALM SPRINGS, INC. SPRINGS David Ready, Executive Director President ATTEST: James Thompson, Assistant Secretary APPROVED AS TO FORM: Douglas Holland, Agency Counsel Boys & Girls Club--Lease Agreement 5