The URL can be used to link to this page

Home My WebLink About7/16/2008 - STAFF REPORTS - 2.M. PALM SAS � ry u CITY COUNCIL STAFF REPORT DATE: JULY 16, 2008 CONSENT AGENDA SUBJECT: AMENDMENT NO. 1 TO LEASE AGREEMENT 4563 WITH KARBZ INC. AT PALM SPRINGS INTERNATIONAL AIRPORT FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY This action allows existing airport tenant KARBZ Inc. (dba SSC Racing) to diversify their business located at 3101 E. Alejo Road (Palm Springs International Airport property) and utilize vacant office space to accommodate an additional use called the Senior Helpers of the Desert, Inc. RECOMMENDATION: 1. Approve Amendment No. 1 to Lease Agreement 4563 with KARBZ Inc_ at Palm Springs International Airport. 2. Authorize the City Manager to execute all necessary documents STAFF ANALYSIS: KARBZ Inc. (dba SSC Racing) has a 10 year lease that will expire on September 18, 2012 with an additional one five-year term at the City"s option. Due to the volatile economic climate in their current specialty (high performance Go-Carts) KARBZ wants to diversify the business and use current vacant office area under lease to accommodate their new business called Senior Helpers of the Desert, Inc. This business will be owned by KARBZ and provides in-home services to Senior Citizens throughout the Coachella Valley. The leased premises consist of a 2.88 parcel at the end of E. Alejo Road. All parking is onsite and located at the rear of the building facing the taxiway and is not visible from the street. The building consists of approximately 10,000 SF of warehouse space with additional downstairs and upstairs offices. Senior Helpers of the Desert would occupy approximately 1,000 SF of upstairs space consisting of various offices, restrooms and a ITEM NO. F -_ City Council Staff Report July 16, 2008--Page 2 KARBZ—Amendment 1 kitchen. There will only be a few administrative employees onsite daily and periodic attendance for training of service employees. Because this small, limited use building is not conducive to aircraft hangaring, allowing the tenant to engage in this additional use would not compromise the airport environs in any manner. FISCAL IMPACT: There is no change to the current annual rent $67,428, and the five-year Consumer Price Increase adjustment would remain. The addition of a new small business to Palm Springs is positive. Thomas Nolan, xecutive Director—Airport David Ready, City Mana - Attachments: Amendment 1 to A4663 AMENDMENT N0. 1 TO LEASE AGREEMENT 4563 AT PALM SPRINGS INTERNATIONAL AIRPORT THIS FIRST AMENDMENT is made and entered into as of the day of July 2008, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City"), and KARBZ Inc. dba SSC Racing ("Tenant"). RECITALS WHEREAS, Tenant wishes to expand the use of the Demised Premises to include the administrative offices for Senior Helpers of the Desert, Inc. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, the City and Tenant agree as follows: 1. Subsection 1.7 Use of Demised Premises shall be amended in its entirety to read as follows: "1.7 Use of Demised Premises. Tenant desires to continue to engage in the business of operating its corporate headquarters for its go-car manufacturing business and the administrative offices for its in-home senior care services business and wishes to lease the Demised Premises, provided such uses are in compliance with all Federal, State, Local laws, regulations and municipal ordinances and the Airport Rules and Regulations. Clients of the senior care business will not receive any senior care services at the Demised Premises. Any future changes in use or additional uses shall be approved in writing by the City Manager and such use shall be in compliance with all Federal, State, Local laws, regulations and municipal ordinances and the Airport Rules and Regulations. As a further condition of use, due to the noise sensitive environment of the Airport, Tenant will endeavor to not schedule work which exceeds the City noise standards between the hours of 10:00 pm and 7:00 am. Further, Tenant agrees that it will provide reciprocal access easements for all automobile parking facilities with other airport tenants. Tenant will use its best efforts to restrict the use of its automobile parking facilities on the premises to the automobiles of tenant's guests, visitors, employees and suppliers (See Section 4.1) 2. Subsection 4.1 Permitted Use shall be amended in its entirety to read as follows: KARBZ Amendment No. 1 to Agreement 4563 Palm Springs International Airport Q 3 so P1 1 C °4.1 Permitted Use. The City leases to Tenant and Tenant hires from City the Demised Premises with appurtenances as defined herein, for the purpose of conducting the use(s) specified in subsection 1.7 of this Lease and pursuant to the requirements set forth therein. & Full Force and Effect. Except as expressly modified herein all other provisions of the Concession Lease Agreement shall remain unmodified and in full force and effect. 4. Corporate Authority. The persons executing this Amendment 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 Amendment on behalf of said part, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the entering into of this Amendment does not violate any provision of any other"agreement to which said party is bound. (EXECUTION PAGE FOLLOWS) KARBZ Amendment No. 1 to Agreement 4663 Palm Springs International Airport 5561'J3 1 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 ASTOIFORM: f s By:^ '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 S. Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,or Chief Financial Officer. By: By: Signature(notarized) Signature{notarized) Name: Name: Tille: Title: State of State of County of County of On before me, On before me, personally appeared personally appeared who proved to me on the basis of satisfactory who proved to me on basis of satisfactory evidence to be the person(s)whose name(s) evidence to be the person(s)whose name-(s) is/are subscribed to the within instrument is/are subscribed to the within instrument and acknowledged to me that helshe/they and acknowledged to me that helshuftey executed the same in hisfhef/their authorized executed the same in his/herAheir authorized capacity(ies),and that by histherlthelr capaciKies),and that by hislhedtheir signature(s)on the instrument the person(s), signatures(s)on the instrument the person(s) or the entity upon behalf of which the or the entity upon behalf of which the person(s) acted,executed the instrument. persons)acted,executed the instrument. I certify under PENALTY OF PERJURY I certify under P5NALTY OF PERJURY under the laws of the State of California that under the laws of the State of California that the foregoing paragraph is true and correct. the foregoing paragraph is true and correct. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Signature: Notary Signature: Notary Seat: Notary Seal: KARBZ Amendment No. 1 to Agreement 4563 Palm Springs International Airport 5961931