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Home My WebLink About10/3/2007 - STAFF REPORTS - 2.I.DATE: SUBJECT FROM: BY: CITY COUNCIL STAFF REPORT October 3, 2007 CONSENT CALENDAR SUPPLEMENTAL SPACE USE AGREEMENT FOR STORAGE SPACE NO. 4 WITH THE PARADIES SHOPS, LLC David H. Ready, City Manager Department of Aviation SUMMARY Airport Tenant and Retail Concessionaire The Paradies Shops, LLC requires additional lower level terminal storage space and space is available to accommodate this request. RECOMMENDATION: 1. Approve Supplemental Space Agreement with The Paradies Shops, LLC for Storage Space No. 4 effective September 15, 2007 through October 31, 2009. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The Paradies Shops currently has a retail concession lease agreement for various locations within Palm Springs International Airport (A4159) and requires additional lower level storage space within the Airport Terminal. Storage Space No. 4 (304 SF) has been remodeled (addition of chain link) to meet the concessionaires needs and they will reimburse the City for these improvements. This agreement will be effective September 15, 2007 and terminate concurrent with the main agreement on October 31, 2009. At its regularly scheduled meeting on September 12, 2007 the Airport commission recommended City Council approves Supplemental Space Agreement with The ITEM NO. _31 _ City Council Ster Report October 3, 2007 -- Page 2 Paradies Storage Space No, 4 Paradies Shops, LLC for Storage Space No. 4 effective September 15, 2007 through October 31, 2009. FISCAL IMPACT: Per the City of Palm Springs Comprehensive Fee Schedule the current rate for lower level storage space (Non Signatory) is $20.06 per square foot per annum. This equates to $6,098.24 additional revenue per year (415-38123). The Paradies Shops, LLC will also reimburse the City for the chain link remodel in full in the amount of $2,105.00 at the beginning of the agreement term. Thomas Nolan, A.A.F. Executive Director — Airport Attachments: Supplemental Space Use Agreement David H. Read' City Manager SUPPLEMENTAL SPACE USE AGREEMENT THE PARADIES SHOPS, LLC THIS SUPPLEMENTAL SPACE USE AGREEMENT, made and entered into as of this day of 2007, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City") and PARADIES SHOPS, LLC, a Georgia limited liability company a 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 during the remaining term of Agreement No, 4159. D. Tenant agrees to reimburse City for initial remodeling expense related to the additional storage space in addition to monthly rental payment for the additional storage space. AGREEMENT NOW, THEREFORE, in consideration of the promises of the parties hereto and for good and valuable considerations, 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 takes 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. 4) containing 304 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 II TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on September 15, 2007 and terminating on October 31, 2009. Paradies Storage Space No. 4 Agreement 1 Palm Springs International Airport p O ARTICLE III RENTALS, FEES AND OTHER CHARGES The rental rate for Storage Space No. 4 shall be computed at the rate of $20.06 per square foot per antrum and shall be $508.19 per month, payable by Tenant to City, beginning on September 15, 2007 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. Tenant agrees to reimburse City in the amount of $2,105.00 for remodeling expenses to install chain link fencing / gate around the perimeter of the storage space. Said one time reimbursement of $2,105.00 shall be payable to City on September 15, 2007. 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 with the written consent of City being first obtained. ARTICLE V MAINTENANCE AND OPERATION Section 1. Utilities. City shall provide electricity to the storage space. Section 2. Reoair 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 VI 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. Paradies Storage Space No. 4 Agreement 2 Palm Springs International Airport 0 0 9-0 a 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 to be reasonably necessary to effect such termination. Thereafter, Tenant shall have no further claims against City under this Agreement. In the event Tenant fails to vacate the demised premises within thirty (30) days of written notice of termination of this Agreement, 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 VIII 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 OFC 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 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. Paradies Storage Space No, 4 Agreement 3 Palm Springs International Airport 000005 IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. ATTEST: By: City Clerk APPROVED AS TO FORM By: City Attorney CONTRACTOR: Check one: By: CITY OF PALM SPRING a municipal corporation City Manager 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: Name: Title: State of Signature (notarized) County of On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/herltheir authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Signature: Notary Seal: By: Name: Title: State of Signature (notarized) County of On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Signature: Notary Seal: Paradies Storage Space No. 4 Agreement 4 Palm Springs International Airport0 0 0o S Exhibit "A" (see attached) Paradies Storage Space No. 4 Agreement 5 Palm Springs International Airport p O Q O G 7 Exhibit A Storage Space No. 4 Polm Springs International Airport - Parodies Storage Space No. 4. Lower Level Terminal. 16 x 19 = 304SF 0000 ;S