The URL can be used to link to this page

Home My WebLink About12/4/2002 - STAFF REPORTS (2) DATE: DECEMBER 4, 2002 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT APPROVAL OF AMENDMENT NO. 2 TO A LEASE WITH SANTIAGO SUNRISE VILLAGE, A CALIFORNIA LIMITED PARTNERSHIP, FOR A PROPERTY AT 1500 EAST SAN RAFAEL ROAD, KNOWN AS SUNRISE VILLAGE MOBILE HOME PARK, TO REDUCE THE SQUARE FOOTAGE BY HALF AND REDUCE THE RENT BY A SIMILAR AMOUNT (A360C and A2443) RECOMMENDATION: It is recommended that the Agency approve Amendment No. 2 to a lease with Santiago Sunrise Village, a California Limited Partnership, for a property at 1500 East San Rafael Road, Sunrise Village Mobile Home park, reducing the acreage leased from 39.73 acres to 20.56 acres and reducing the annual rent by half for the remainder of the lease term SUMMARY: Santiago Corporation and the City of Palm Springs entered a lease on the Sunrise Village Mobile Home Park in 1987. In 1990, Santiago assigned the lease to the current tenant Santiago Sunrise Village, and in 1995 the City sold its fee interest in the land to the Low/Mod Housing Fund of the Community Redevelopment Agency. The Agreement was amended once, in 1999. In 2000, the Agency began negotiating with a non-profit to assist to acquire the park from the current owner. A Disposition and Development Agreement is under negotiation and is nearing finalization. At the same time, the Agency began negotiating with a for-profit developer, Burnett Development, to acquire a 22.21 acre City-owned parcel and the undeveloped 19.17 acre portion of the Sunrise Village Mobile Home Park under a fair market transaction to develop a single-family, market rate housing development in that area. Burnett has completed entitlements for 238 lots on the east side of Sunrise Way, and has a Tentative Tract Map scheduled for Planning Commission and City Council this month for the 163-home west subdivision, with DDA approval to follow. This lease amendment is necessary to allow the Agency to be able to perform on the Burnett DDA, and moves up in the schedule one of the actions necessary under the DDA with the non- profit; Santiago willr sell the park to the non-profit without the undeveloped acreage. JOHN S. R O D�irecto,rvf Com fiity and Economic Development APPROVED r- City Manager ATTACHMENTS: 1. Resolution 2. Lease Amendment c�� TO BE RECORDED AND WHEN RECORDED RETURN TO: Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92623 Attn: Secretary (Space Above This Line for Recorder's 011;ce Use Only) THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. SECOND AMENDMENT TO LEASE AGREEMENT THIS SECOND AMENDMENT TO THE LEASE AGREEMENT (this"Amendment") is made as of December 12002, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic, the successor-in-interest to the City of Palm Springs (`Landlord"), and SANTIAGO SUNRISE VILLAGE, a California limited partnership, the successor-in-interest to Santiago Corporation, a California corporation (`Tenant"). WITNESSETH: WHEREAS, Landlord is the current landlord and Tenant is the current tenant, under that certain Lease Agreement, dated as of June 29, 1987 (the "Original Lease", and as amended hereby, the"Lease"); WHEREAS, Tenant was assigned its rights pursuant to an assignment agreement effective January 8, 1990; WHEREAS, Landlord purchased the fee interest in the property pursuant to an Agreement dated November 15, 1995 and amended on April 3, 1996; WHEREAS, pursuant to the Amended Lease, Landlord leased to Tenant 39.73 acres of real property located at 1500 San Rafael Road, (the"Premises"); WHEREAS, Tenant subsequently improved a portion of the Premises with a mobile home park for the occupancy and benefit of low and moderate income persons; WHEREAS, Landlord and Tenant wish to modify the Original Lease by reducing the Premises to that area currently improved and by reducing the rent by fifty percent (50%) subject to the terms and conditions set forth herein. IRV#271 IO vl -1- NOW, THEREFORE, in consideration of the foregoing recitals, the mutual agreements, covenants and provisions contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency and validity of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1. Definitions. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings assigned to such terms in the Lease. 2. Recitals. All of the foregoing recitals are acknowledged by Landlord and Tenant as being true and correct and shall be deemed incorporated by reference herein. 3. Effective Date. The Effective Date of this Amendment shall be January 1, 2003. 4. Reduction in Premises. Exhibit "A" shall be amended to provide a legal description covering only that portion of the original Premises that currently has improvements. The new Exhibit "A" is attached hereto and incorporated herein by this reference. In executing this Amendment, Tenant hereby releases all of its right, title and interest in the unimproved portion of the original Premises legally described on Exhibit`B," attached hereto and incorporated herein by this reference. 5. Rent. Section 3 of the Lease is hereby amended to add a new subsection (h) which provides: From the Effective Date the monthly rental amount calculated in this section shall be reduced by fifty percent (50%). 6. Full Force and Effect: Conflicts. Except as modified hereby, all the terms and conditions of the Original Lease shall continue in fiill force and effect. In the event of any conflict or inconsistency between the terns of the Original Lease and this Amendment, the terms and provisions of this Amendment shall govern and control. All references in the Lease to "this Lease" shall be deemed references to the Original Lease as modified by this Amendment. 7. Authority: Counterparts. Each of the individuals executing this Amendment on behalf of Landlord or Tenant represents and warrants that he or she is duly authorized to execute and deliver this Amendment on behalf of said party, and that this Amendment is binding upon said party in accordance with its terms. This Amendment may be executed in any number of identical counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. S. Governing Law. This Amendment shall be interpreted under and be governed by the laws of the State of California, without giving effect to any conflicts of law provisions. [Signatures on Next Page] IRV#27110 v1 o IN WITNESS THEREOF, Landlord and Tenant have executed this Amendment as of the day and the year first herein above written. COMMUNITY REDEVELOPMENT AGENCY SANTIAGO SUNRISE VILLAGE, a OF THE CITY OF PALM SPRINGS, California limited partnership a public body, corporate and politic By By William G. Kleindienst General Partner Chairman Notice Address: Notice Address: 3200 East Tahquitz Canyon Way Palm Springs, California 92262 ATTEST: Secretary APPROVED AS TO FORM: Name: David J. Aleshire, Esq. Title: Agency Counsel IRV#27110 v1 Liu -3- EXHIBIT "A" LEGAL DESCRIPTION [COVERING ONLY THAT PORTION OF THE ORIGINAL PREMISES THAT CURRENTLY HAS IMPROVEMENTS] IRV 427110 vl A_I C�� ,6s- EXHIBIT "B" LEGAL DESCRIPTION [OF UNIMPROVED PORTION OF THE ORIGINAL PREMISES] IRV#27110 vl B-1 STATE OF CALIFORNIA } } ss. COUNTY OF RIVERSIDE } On the day of 2002, before me, the undersigned, a Notary Public, in and for said State and County, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the within instrument as the Chairman on behalf of the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic therein named, and acknowledged to me that such corporation executed the within instrument pursuant to its bylaws or a resolution of its board of directors. WITNESS my hand and official seal. Signature of Notary (SEAL) STATE OF CALIFORNIA } } ss. COUNTY OF RIVERSIDE } On 2002, 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 signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary [SEAL] IRV 927110 v1 RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO A LEASE WITH SANTIAGO SUNRISE VILLAGE,A CALIFORNIA LIMITED PARTNERSHIP, FORA PROPERTYAT 1500 EAST SAN RAFAEL ROAD, SUNRISE VILLAGE MOBILE HOME PARK, TO REDUCE THE ACREAGE LEASED FROM 39.73 ACRES TO 20.56 ACRES AND REDUCING THE ANNUAL RENT BY A HALF FOR THE REMAINDER OF THE LEASE TERM, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, PARCEL 669-500-001 WHEREAS the City of Palm Springs, a municipal corporation ("City"), and Santiago Corporation, a California corporation ("Santiago'), entered into a Lease Agreement No. 2443 dated June 29, 1987 and recorded on June 30, 1987 as Instrument No. 185905 in the Official Records of Riverside County for a property at 1500 East San Rafael Road, known as Sunrise Village Mobile Home park; and WHEREAS subsequent to the execution of the Original Lease, the City transferred the real property to the Community Redevelopment Agency of the City of Palm Springs, via a Purchase and Sale and Assignment of Lease Agreement dated November 15, 1995, which was subsequently amended on April 3, 1996 to adjust the boundaries and legal description; and WHEREAS the Agency has received a fair market value offer from a developer to purchase 19.17 acres of undeveloped land subject to the assigned lease, as well as the City-owned parcel adjacent to it on its northern boundary; and WHEREAS, the parties amended the Original Lease to include additional acreage not covered by the Original Lease, and to clarify the parties' rights under the lease, pursuant to an Agreement (A360C) dated November 23, 1999; and WHEREAS the Agency and Santiago now desire to amend the boundaries of the Lease to reduce the amount of acreage covered by 19.17 acres to a net 20.56 acres, in return for which the Agency shall reduce the annual lease payment paid by Santiago for the remaining 40 years of the lease by one-half. NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, that: 1. The Second Amendment to the Lease Agreement between the Community Redevelopment Agency of the City of Palm Springs and Santiago Sunrise Village, a California Limited Partnership and successor in interest, in a form approved by the Agency Counsel, is hereby approved. 2. The Executive Director or his designee is hereby authorized to execute all agreements, letters, documents, deeds, easements to facilitate this transaction. ADOPTED this day of 2002. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED & APPROVED AS TO FORM