Loading...
HomeMy WebLinkAbout11/26/2002 - STAFF REPORTS (9) DATE: NOVEMBER 20, 2002 TO: CITY COUNCIL FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT APPROVAL OF AMENDMENT NO. 1 TO A LEASE WITH PSP RENTAL CO., A CALIFORNIA LIMITED PARTNERSHIP, FOR A PROPERTY AT 2777 NORTH PALM CANYON DRIVE, KNOWN AS THE PALM SPRINGS VISITORS CENTER RECOMMENDATION: It is recommended that the City Council approve the Amendment No. 1 to a lease with PSP Rental Co., a California Limited Partnership, for a property at 2777 North Palm Canyon Drive, known as the Palm Springs Visitors Center, for a period not to exceed one year SUMMARY: This lease is an extension of the City's lease on the Palm Springs Visitors Center at 2777 North Palm Canyon Drive. The City originally entered a lease on the property on October 25, 1990 ("Original Lease"), and entered a new lease in October, 1997. The most recent lease was for a period of seven years,with the gross monthly rental of$2,250 per month. After several months of negotiation with the property owner, he feels that he needs to make a market-rate rent on the property, which is $5,000 per month. The owner also sought a new five year lease. The City has determined that its long-term strategy is to own a facility in the area that better fits its needs. The Council will also be asked to approve an Assignment of an Agreement for Purchase and Sale, as well as an Assignment of Lease, with Burnett Development Company to purchase the nearby Tramway Gas Station. However, it would take approximately a year to renovate the building, so the City sought a one-year extension of the current lease. The proposed lease is at $5,000 per month, from November 1, 2002 to October 31, 2003. That should give the City sufficient time to meet its long-term objectives. PSP will not have to pay for a number of requested property improvements as part of the renewal, including new bathroom flooring and fixtures and repairs to the plumbing and electrical systems, given the short lease duration. JOHN $. RAYMO<)ID Difectdr of Corn unity and Economic Development APPROVED: City Manager ATTACHMENTS: 1. Minute Order for Lease Amendment 2. Lease Amendment FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO THE LEASE AGREEMENT (this"Amendment") is made as of October 1 2002, by and between THE CITY OF PALM SPRINGS, a charter city and municipal corporation ("Tenant"), and PSP RENTAL CO., a California limited partnership (`Landlord"). WITNESSETH: WHEREAS, Landlord is the current landlord and Tenant is the current tenant, under that certain Lease Agreement, dated as of April 16, 1997 (the"Original Lease", and as amended hereby, the"Lease"); WHEREAS, pursuant to the Original Lease, Landlord leased to Tenant certain real property and improvements commonly known as the Visitor Information Center at 2777 North Palm Canyon Drive, Palm Springs (the"Premises"); WHEREAS, Landlord and Tenant desire to extend the Term until October 31, 2003, subject to the terms and conditions set forth herein. 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. Extension of Term. Amount of Improvements. The Term is hereby extended for an additional one (1)year commencing on November 1, 2002 and ending on October 31, 2003 (the "Extension Period"). Section 1.4 shall thereby be amended in part to state: "Lease expires on October 31, 2003." 4. Rent. Section 1.5 of the Lease is hereby amended to state as follows: From November 1, 2002 until October 31, 2003, monthly rental shall be Five Thousand Dollars ($5,000.00). Said monthly rental shall be inclusive of any property taxes, insurance payments and sewer charges. Sections 1.6 and 3.2 concerning additional are hereby deleted in their entirety. 5. Full Force and Effect: Conflicts. Except as modified hereby, all the terms and conditions of the Original Lease shall continue in full force and effect. In the event of any conflict or inconsistency between the terms of the Original Lease and this Amendment, the terms IRV#25642 v1 -1- 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. 6. 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. 7. 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#25642 vI IN WITNESS THEREOF, Landlord and Tenant have executed this Amendment as of the day and the year first herein above written. CITY OF PALM SPRINGS, PSP RENTAL CO., a California a charter city and municipal corporation limited partnership By By David H. Ready Fred E. Elg City Manager General Partner By Vivian Elg General Partner Notice Address: Notice Address: 3200 East Tahquitz Canyon Way Palm Springs, California 92262 ATTEST: CITY CLERK APPROVED AS TO FORM: Name: David J. Aleshire, Esq. Title: City Attorney IRV fS25642 vl MINUTE ORDER NO. APPROVING AMENDMENT NO. 1 TO A LEASE WITH PSP RENTAL CO. A CALIFORNIA SPRINGS, A CALIFORNIA LIMITED PARTNERSHIP, FOR A PROPERTY AT 2777 NORTH PALM CANYON DRIVE, KNOWN AS THE PALM SPRINGS VISITORS CENTER, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY I HEREBY CERTIFY that this Minute Order approving a Amendment No. 1 to a Lease with PSP Rental Co., a California Limited Partnership, for a property at 2777 North Palm Canyon Drive, known as the Palm Springs Visitors Center,in a form acceptable to the City Attorney,was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 20th day of November, 2002. PATRICIA A. SANDERS City Clerk