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HomeMy WebLinkAbout12 - Lease for Lincoln Athletic CenterCOMMUNITY SERVICES DEPARTMENT JUL 281997 APPROVED July 28, 1997 CITY COUNCIL AGENDA ITEM NO. 12 TO: Mayor and City Council FROM: LaDonna Kienitz, Community Services Director/ City Librarian SUBJECT: Lease for Lincoln Athletic Center Recommendation a s a y (33) h Approve the attached lease with the Newport -Mesa Unified School District for the use of the Lincoln Athletic Center. Background The City has had a lease with the District for the use of the fields and gymnasium building since January 1985. During that period the City has expended approximately $750,000 in upgrades, repairs, etc., to the site. The former lease expired in December 1995; City staff have been working with District staff since that time to develop a new agreement. The agreement provides for an annual lease payment of $16,200 for the first five years; $32,400 thereafter. The term is twenty years with provision for an appraisal at the end of ten years to determine the appropriate lease rate. The lease has been reviewed by the Council Harbors, Beaches and Parks Committee and the Finance Committee. The funds have already been appropriated in the FY 1997/98 budget of the Community Services Department and in the Supplemental Budget, passed by the Council on July 14,1997. The Lincoln Athletic Center, including gymnasium and three playing fields, is the central core of the City's recreation and athletic programs for youth and adults. It currently serves approximately 6,000 athletes in registered programs, with 65,000 individuals participating annually. The lease was approved by the Board of the Newport -Mesa Unified School District on June 24, 1997. Attachment 'F = NE ISP O R . . -•�, NEWPORT -MESA Unified School Distrcct �= post office box 1368 • newport beach, cahj'Ornia 92663 - (714) 760-3200 BOARD OF TRUSTEES JIM de BOOM • -0\,A/ARO H. DECKER • MARTHA FLUOR 3_ JUDY FRANCO • JIM FERRYMAN • WENCY LEECE • SERENE STOKES DR. NIAC BERND. Supen•ntenCent July 2, 1997 City Manager, City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658-8915 Re: Lease Agreement Dear Sir. Enclosed are four copies of the Lease Agreement between the Newport -Mesa Unified School District and the City of Newport Beach for the Lincoln Intermediate School for your program. Please sign all copies, retain the copy indicated for your files, and return the remaining copies to this office. If you have questions, please call. Sincerely, Carolyn B. Stocker, Executive Director Facilities & Operations cm Enclosures BUSINESS SERVICES & AUXILIARY OPERATIONS CAROLYN STOCKER, Executive Director 7qp- , ac,R.SrFFcr r!'.5 r: �.rc) , r_! PO I?('Y 17F,,9 ?/cl;'000T LEASE THIS LEASE, between the NEWPORT -MESA UNIFIED SCHOOL DISTRICT, ("DISTRICT") and the CITY OF NEWPORT BEACH ("CITY") is entered into this day of , 1997. 1. DISTRICT leases to CITY a portion of the real property and improvements commonly referred to as the Lincoln Intermediate School located at 3101 Pacific View Drive, Corona Del Mar, California (Leased Property). The Leased Property consists of the gymnasium, lighted play fields, and the public restrooms, excluding the locker rooms. The Leased Property is more particularly described in Attachment 1. 2. The term of this Lease shall be for a period of ten (10) years beginning on the 1 st day of July, 1997, with two automatic five year extensions, ending respectively on the 30th day of June 2012, and on the 30th day of June 2017. 3. Subject to the discount provided in this Section, CITY agrees to pay DISTRICT the sum of thirty two thousand four hundred dollars ($32,400) as the annual lease payment, which shall be adjusted pursuant to Section 5. The lease payment for the first year and for the succeeding four years will be discounted by fifty percent (50%) in consideration of the extensive renovations previously made by the CITY to the Leased Property including installation of the new gymnasium flooring and the 1997/98 planned refurbishment of the restrooms and installation of new exterior doors on the gymnasium. Lease Payments will be made in two equal installments due on July 1 and January 1. 4. In the event CITY determines that certain improvements to the Leased Property should be made to accommodate potential users, CITY may submit requests to District for approval to make the improvements and reduce the Lease Payment in an amount equal to the cost of the improvements. Approval of the improvements and discount from the annual lease for that year shall not be unreasonably withheld. 5. The Lease Payment shall be increased or decreased on July 1, 1998 and each twelve months thereafter, to reflect changes in the Consumer Price Index (for all Urban Consumers for Los Angeles, Anaheim and Riverside) for the preceding twelve month period for which CPI changes are available, but not to exceed an increase of 5% in any given year. 6. Lease Payment subsequent to the initial ten (10) year term of this lease shall be the lower of (1) the rental rate for use of DISTRICT property negotiated by the City of Costa Mesa with the DISTRICT; or (2) the rate determined to be "fair market value" for the use of public property as determined by a disinterested real estate appraiser mutually agreed upon by the CITY and the DISTRICT. 7. In the event the DISTRICT requires the use of the Leased Property, or any portion thereof, for DISTRICT programs, the DISTRICT will provide the CITY with one hundred eighty (180) days notice of its intent to modify this agreement and the DISTRICT will use its best efforts to assist CITY in obtaining alternate DISTRICT facilities suitable for CITY recreational programs during the period the Leased Property is unavailable to the CITY. In the event DISTRICT is unable to provide CITY with alternate facilities, CITY and DISTRICT shall negotiate modifications to this Agreement relative to the Lease Payments and the Leased Property. 8. CITY and DISTRICT each have the right to terminate this Agreement, without cause, on one year written notice. 9. The CITY shall not sublet all or a portion of the Leased Property without the express written consent of DISTRICT. CITY shall not make any alterations or additions to the Leased Property without the express written consent of DISTRICT. Any alterations of additions to premises shall be at the sole cost of CITY subject to the provisions of Section 4. 10. CITY shall pay DISTRICT fifty percent (50%) of any net income derived from use of the Leased Property which, during any calendar year, exceeds the annual Lease Payment. Net income shall be calculated by deducting from the gross revenue the City's costs of conducting programs on or in the Leased Property. 11. CITY shall, during the term of this lease, maintain in good order, condition and repair the Leased Property. The CITY's obligation includes, without limitation, the repair of windows, roofs, field lighting system, painting, and blacktop around the gymnasium. CITY shall also reimburse DISTRICT for any damage to the Leased Property proximately caused by the CITY, or its employees, officials, or invitees. 12. CITY shall, during the term of this Agreement, comply with the scheduling parameters identified in DISTRICT Rule and Regulation 7410, paragraph 7.0, which states that youth activities conducted for NMUSD students will have preference over adult activities. The priority of scheduling shall be as follows: 1. Regular school programs, including summer school activities. 2. CITY sponsored and/or school connected youth groups, e.g., Harbor Area Baseball Program 3. Other youth activities 4. CITY adult programs 5. Other adult programs 13. CITY shall, during the term of the Lease, keep the interior of each structure on the Leased Property, and every part thereof in good order, condition and repair as well as maintain the fields in a safe condition. If CITY fails to perform its obligations pursuant to this section, DISTRICT may, at its option, after ten (10) days written notice to CITY, and CITY's failure to perform, perform the necessary repair or maintenance and the cost thereof shall become due and payable by CITY to DISTRICT upon demand. 14. On the last day of the term hereof, or on any earlier termination, CITY shall surrender the premises to DISTRICT in the same condition as when received, ordinary wear and tear excepted. 15. CITY shall, at its own cost and expense, provide all janitorial supplies and services to the Leased Property, which shall include, without limitation, the replacement of restroom supplies, light bulbs and fluorescent tubes. CITY shall maintain the two restroom facilities in a clean and sanitary manner, and lock the rooms at 11:00 P.M. each evening, Monday through Friday. The District will open the restrooms at 7:00 A.M. each morning, Monday through Friday. Restrooms shall be clean and ready for daily use at the 7:00 A.M. To accommodate weekend activities scheduled by CITY, the CITY shall open the restrooms on Saturday and Sunday mornings, and lock them on each evening. Restrooms shall be clean and ready for daily use at the 7:00 A.M. on Monday. 16. CITY shall, at its own cost and expense, maintain the landscaping and turf areas on the Leased Property in an attractive and safe condition and, to the extent feasible, free from rodent infestation. In addition, CITY will maintain, and repair as necessary, the field sprinkler systems and timers in the Leased Property. 17. CITY shall cause all necessary utility services for the fields to be placed in its name and shall pay all charges therefore during the term of this Agreement. The City agrees to reimburse to the District annually the fair amount of the cost of utilities related to CITY's use of the gymnasium on the Leased Property. 18. All notices pursuant to this Lease shall be deemed given when personally delivered or deposited in the United States mail, first class postage prepaid, and addressed as follows: DISTRICT Attention: Superintendent of Schools Business Office Newport -Mesa Unified School District P.O. Box 1368 Newport Beach, CA. 92663 CITY Attention: City Manager City of Newport Beach 3300 Newport Boulevard, P.O. Box 1768 Newport Beach, CA. 92658-8915 19. CITY agrees that no activity or business will be conducted or carried on in violation of any regulations, order of law, statute, bylaw or ordinance of any governmental agency having jurisdiction. Any modifications or additions to the Leased Property shall revert to sole ownership of DISTRICT upon the expiration or termination of this Agreement. 20. In the event of any breach of this Lease by CITY, DISTRICT shall notify CITY in writing of such breach and CITY shall have sixty (60) days in which to cure said breach. If such breach is not cured within the specified time, this Lease shall be terminated; in which event CITY agrees to immediately surrender possession of the premises and to pay to the DISTRICT, in addition to any other remedy DISTRICT may have, all damages DISTRICT may incur by reason of its defaults, including the cost of recovering the premises. 21. If either party hereto shall be delayed or prevented from the performance of any act required by this Agreement by reason of acts of God, restrictive governmental laws or regulations, or other cause beyond the control of the party obligated (financial inability excepted), performance of such acts shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for the period of the delay. However, nothing in this Section shall excuse either party from the prompt payment of any rental or other charges required except as may be expressly provided elsewhere in this Agreement. 22. This Agreement sets forth the entire understanding .between CITY and DISTRICT and any modifications must be in the form of a written amendment signed by the party to be charged. 23. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 24. The failure of either party to insist upon strict performance of any of the terms, conditions_ or covenants in this Agreement shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions or covenants herein contained. 25. DISTRICT recognizes that the use of tobacco products represents a health and safety hazard which can have serious consequences for the tobacco user and non -user alike. It is the intent of the DISTRICT that all District buildings, property and vehicles remain tobacco -free. Therefore, the CITY agrees that the District facilities included in this Lease shall be designated and posted tobacco -free. 26. In the event of a partial destruction of, or damage to, the Leased. Property or the Leased Property has been declared unsafe or unfit for occupancy, by a public agency authorized to make such declaration, for any reason other than CITY's use or occupation, DISTRICT shall, as soon as practicable, make such repairs as are necessary to restore the Leased Property to the condition which existed prior to the destruction or damage and/or make such repairs as are necessary to make the Leased Property safe and fit for occupancy, provided , however, DISTRICT shall be entitled to terminate this Agreement in the event DISTRICT reasonably determines that repairs are infeasible. CITY shall be entitled to an abatement of Lease Payments for the period that CITY's use and occupancy of the Leased Property was adversely affected by the destruction, damage, restoration and/or repair. 27. DISTRICT shall have the right at all reasonable times to inspect the Leased Property to determine if CITY is in compliance with the provisions of this Agreement. 28. As additional consideration for this Agreement, the CITY will use its best efforts to assist the DISTRICT relative to the sale and reuse of property declared surplus by the DISTRICT subject to the following: a. DISTRICT has offered to sell or lease the property to the CITY for the minimum consideration required by law; and b. CITY has, through formal action of the City Council, declined the offer within 60 days after the offer was served on the CITY 29. This Agreement is entered into pursuant to the authority of the Education Code of the State of California (beginning with Section 39300). IN VVITNESS WHEREOF, the parties hereto have executed this Lease as of the date first written above. Date: 6/24/97 DISTRICT: Secretary, Board of Education Newport -Mesa Unified School District CITY: City of Newport Beach