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HomeMy WebLinkAboutF-2b - Elks Club LeaseCITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 25, 1983 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: I Background C - 109 (3 9) CITY COUNCIL AGENDA ITE11 F -2(b) BY THE CITY COUNCIL CITY OF NEWPORT BEACH APR 2 51983 On April 28, 1958, the City Council authorized execution of a lease agreement between the City (sublessee), the Elks Lodge (lessee), and the Griffith Company (lessor). The agreement authorized the City to use a portion of the "Elks Club" property at Via Oporto and Central for metered parking (four spaces) in connection with the larger City -owned lot at this location as well as for egress from the City lot. The agreement established a term commencing on May 1, 1958 and terminating on April 30, 1983, and provided that the City would pay to the Elks Club 12% of the meter revenue from the City lot or $120.00 per year, whichever was greater, as a consideration for use of the portion of the lot on the Flks property. Attachment 1 is a copy of the sublease agreement and Attachment 2 is a map showing the spatial relationships between the City parking lot, the Elks Club building area and the area under_ lease. It should be noted that the Griffith Company is no longer a party to the lease since the Elks Club has purchased the companv's interest. Proposed Lease Renewal Attachment 3 is a letter from the Elks Club proposing an extension of the existing lease agreement on a month -to -month basis. As noted previously in this staff report, the agreement is due to expire on April 30, 1983 and the proposed extension would permit an oppor- tunity for discussing the terms of a longer term lease agreement. The other terms and conditions of the existing aareement would remain in effect under the month -to -month extension. Recommendation It is recommended that the Mayor and City Clerk be authorized to execute a month -to -month extension of the Elks Club lease. Staff TO: MAYOR AND CITY COUNCIL - Page Two will continue to discuss the matter of a longer term agreement with the Elks, QR0136En L. WYNN City Manager RLW:GJB:jmb Attachments ATTACF24ENT 1 3 4/25 53 (6) 1j SUBLEASE 2 3 THIS AGSEEi,IENT OF SUBLEASE made and entered into this 4 28th day of April , 1958, at Newport Beach, California, 5 by and between the CITY OF NEWPORT BEACH, a municipal corporation, 6 hereinafter referred to,as "SUBLESSEE ", LODGE BUILDING C01MRATI04, 7 a corporation, hereinafter referred to as "LESSEE ", and GRIFFITH 8 COMPANY, a corporation, hereinafter referred to as "LESSOR ", 9 WITNESSEPH: 10 WHEREAS, Lessor is the owner of Lot 1126, of Tract No. 11 907, Lido Mainland; and , 12 WHEREAS, Lessor and Lessee entered into a lease under 13 which Lessee leased said lot from August 1, 1952, to July 31, . 14 2007, from Lessor; and 15, - WHEREAS, Sublessee owns certain land at the northerly < 16 end of Central Avenue and intends to develop said land as a 17 parking lot; and i8 WHEREAS, a portion of the lot ovned by Lessor and leased 19 by Lessee lies between Sublessee's land and Via Oporto; and 20 WHEREAS, it would be convenient and useful for Sublessee. 21 to have possession of a portion of the land under lease to Lessee 22 to use in connection with the parking lot for parking and for 23 ingress and egress to said parking lot;. 24 NOW, THEREFORE, the parties agree as follows: 25 1.- Description. Sublessee leases from Lessee a portion 26 of the land under lease from Lessor described as follows: 27 A portion of Lot 1126, as shown upon a map of Tract 28 No. 907, recorded In 'Useellaneous Map Book 28, 29 Pages 25 to 36 inclusive, records of Orange County, 30 California, and more particularly described as 31 follows: 32 1. .•. a. i� .eF:::.�,vca+:'wvi+i:..,�.� »•:: _...:.. .. �_+n.:r�aaw�: . .. ....:+...•.. - . >s�.:. :.. -... .»...».,..,.w. I Beginning at the most northerly corner of said Lot 2 1126; thence southwesterly along a northwesterly line 3 of said lot a distance of 135.52 feet to an angle point, 4 said angle point being the true point of beginning; 5 thence southwesterly along the southwesterly prolonga- 6 tion of said northwesterly line to an intersection with 7 the southwesterly line of said lot; thence northwesterly 8 along said southwesterly line a distance of 51.74 feet, 9 more or less to the beginning of a tangent curve, concave 10 to the northeast and having a radius of 10 feet; thence 11 northerly along said curve and along the westerly line 12 of said lot an are distance of 15.71 feet; thence tan - 13 gent to last mentioned curve and northerly along the 14 westerly line of said lot a distance of 15 feet to a 15 corner of said lot; thence southeasterly along a north- 1 16 easterly line of said lot to the true point of beginning. 17 2. Term. The term of the sublease shall be from May 1, 18 1958, to April 30, 1983. 19 3. Rental. Sublessee will install and intends to 20 maintain parking meters on the leased premises and on its land at 21 the northerly end of Central Avenue being developed with said 22 leased premises as a parking lot. During the time meters are main - 23 tained on said lot, Sublessee shall pay to Lessee as rental twelve 24 per cent (12%) of the gross revenue received from all meters 25 installed in the area bounded by Via Oporto, the center line of 26 Central Avenue, Newport Bay and LesaeO s building adjoining the 27 proposed parking lot, or One Hundred Twenty Dollars ($120.00),per 28 year, whichever is greater. Should the meters be removed after 29 they have been in operation for more than one (1) year, the annual 30 rental shall be twelve per cent (120) of the amount of gross 31 revenue from the meters in the area herein described during the 32 twelve.(12) .complete months immediately preceding the time the 2. 1 meters are removed or One Hundred Twenty Dollars ($120.00), which - 2 ever is greater. In any other event the annual rental shall be 3 One Hundred Twenty Dollars ($120.00). Rental shall be paid to 4 Lessee quarterly or monthly at the convenience of Sublessee. As 5 additional rental Lessee shall be permitted to have exclusive use 6 of all that portion of the parking lot not in any street right of 7 way for any six (6) days each year or portion of a year, provided 8 that Lessee shall give Sublessee notice of the days selected at 9 least thirty (30) days in advance. 10 4. Use and Maintenance. The Sublessee.s'nall use the 11 property only as a parking lot or for ingress or egress from its 12 parking lot at that location; provided, however, that the propert. 13 may be used for any facilities necessary or convenient for.the 14 efficient operation of the parking lot. The property shall be 15 maintained by Sublessee with respect to lighting, surfacing and 16 cleaning in as good condition as other municipal parking lots are 17 maintained by Sublessee. 1s 5. Termination. The sublease shall terminate upon the 19 termination of the lease between Lessor and Lessee for any cause. 20 The sublease shall also terminate if said Sublessee discontinues 21 using it in connection with the parking lot. If the lease between 22 Lessor and Lessee is canceled, Subleases nay continue to pay 23 Lessee the rent herein provided as long as Sublessee is in posses - 24 lion of the premises; provided, however, that Sublessee may in an; 25 event remain in possession of the premises for ninety (90) days 26 after receiving notice of cancelation of the lease. The parties 27 recognize that Lessee by leasing the land to Sublessee is reducing 28 the area it has available for parking in connection with its presei 29 building. It is the intention of the parties that Lessee not be 30 penalized with respect to the present or future use of its buildin; 31 as a result of said reduction in area. Lessee should, therefore, 32 receive credit for parking space equivalent to the area leased 3. .: F_ ,..- ... _.;.u_- .., -.... , _.,....,.._.rte..: ..:. .:....... .' _.... s+:.:�,:m. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2b 21 22 23 24 25 26 27 28 29 30 31 32 hereunder in connection with any application for a permit in the consideration of.which parking space is a factor. It is agreed tha �i Sublessee is not hereby bound to grant any such permit; provided, however, if Sublessee should fail in the consideration of any application for any such permit to give credit for said parking space at the request of Lessee, Lessee may terminate this sublease by giving thirty (30) days' notice of termination. Upon terminatio of this sublease, Sublessee shall remove all facilities except paving placed upon the premises for use in connection with the parking lot, and shall repair any holes or depressions caused as a result of removing any such facilities, 6, Successors and Assigns. The terms of this sublease shall inure to the benefit of and be binding upon the successors and assigns of the Lessor, Lessee and Sublessee. IN WITNESS WHEREOF the parties hereto have executed this sublease on the day and year hereinabove written. _ LODGE ULDIN COR PORATION L [K By LESSEE CITY NEWPORT EAC F By . mayor Margery Schrouder, City Clerk �i Clem SUBLESSEE GRIFFITyj CPAA�` rest— de-n-- a-* Secrecy LESSOR 4. Allis- \ _... U .4 y.. -:. / CHMT NT 2 At -is it K 5 n y -ly t WIt ON (w � F s ILI �' .�... L'A ii •� ,1i. YZ . t ..'feacTi +al rur ka 9 :. . .: o 'af a - vir latgbR•'. AV S li .1: ^F. / CHMT NT 2 At -is it K 5 n y -ly t WIt ON (w � F .�.j'A lL:..4Yoit 24 v i r2Y - l y N . -. .. ...... ., y, ... q - •. s ;.1:5 iJ: ..: j !i is lf) i .�i.S Or -20 �q C�fT�.4'TO 2� ff%ra eftem out t e �.>Se� o? ►: ._., .._ C /TYOF NEWPORT BEACH. li Y ;` .. .,yid y�r.; •�b y x �: S , "3 ILI YZ . t ..'feacTi +al rur ka 9 :. . .: o 'af a - vir latgbR•'. tasaa n► ar�cia asc3 axy n .ru ar- .�.j'A lL:..4Yoit 24 v i r2Y - l y N . -. .. ...... ., y, ... q - •. s ;.1:5 iJ: ..: j !i is lf) i .�i.S Or -20 �q C�fT�.4'TO 2� ff%ra eftem out t e �.>Se� o? ►: ._., .._ C /TYOF NEWPORT BEACH. li Y ;` .. .,yid y�r.; •�b y x �: S , "3 M • Newport Harbor Elks Lodge 1767 BENEVOLENT AND PROTECTIVE ORDER OF ELKS j 3456 VIA OPORTO, NEWPORT BEACH, CALIFORNIA 92663 �r TELFPHONE:673 -6110 l_. April 18, 1983 I.Ir Gerry J Bolint Asst, to City 'tanager 3300 Newport Boulevard Newport Beach, California 92660 Subject: Sublease of a portion of Lot 1126 Dear NLr Bolint, ATTACHMENT 3 Oil OF As per our conversation of April 11th and April 15th, 1983 regarding the sublease for ingress and egress and parking in the above mention lot between the City of Newport Beach and the Newport Harbor Elks Lodge # 1767 B.P.O.E., the Newport Harbor Elks # 1767 B.P.O.E, is willing to extend the sublease of a portion of our lot to the City of Newport Beach for said parking scheduled-to expire April 30th, 1983. This extention is to be for a Deriod of 30 days at a time until such time as a new and fair and equitable agreement can be made between the City of Newport Beach and Newport Harbor Elks # 1767 B.P.O.E, for a long term agreement. If for any reason the City of Newport Beach cannot accept the 30 day extention periods, please notify me, and we will explore other avenue for agreement. Please assure the City that we want to work out an agreement that will benifit both the City and ourselves. Until I hear from you Respectfully, NEWPORT HARBOR ELKS # 1767 B.P.O.E. Robert F Dearborn 11 Exalted Puler RFD11 /sd RESOLUTION NO. 83 -40 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT.BEACH AUTHORIZING THE MAYOR & CITY CLERK TO EXECUTE AN AMENDMENT TO A LEASE PURSUANT TO WHICH CITY UTILIZES A PORTION OF THE ELKS CLUB PROPERTY FOR PARKING AND VEHICULAR ACCESS PURPOSES WHEREAS, the City of Newport Beach, the Griffith Company and the Elks Lodge Building Corporation are parties to a SubLease, dated April 28, 1958, which grants to the City of Newport Beach rights to use certain property, at the northerly end of.Central Avenue, for parking and vehicular access purposes; and WHEREAS, the Elks Club has purchased the interests of the Griffith Company to the original Lease and is now the only party, other than the City, which has an interest in the Lease of the City property referenced above; and WHEREAS, the Lease referred to above expires on April 30, 1983, and the Elks Club is reluctant to execute a. long- term Lease renewal until it has had a chance to further negotiate the terms of such a renewal; and WHEREAS, the present SubLease does not clearly establish that the.City would have the right to continue to use the leased property on a,month -to -month basis, subsequent to expiration of the Lease• and WHEREAS, the parties to the Lease wish to amend.the provisions thereof, to clarify the rights.and duties of the parties subsequent to the termination of the Lease and prior to the execution of any long -term renewal. thereof; NOW, THEREFORE, BE IT RESOLVED by.the City Council of the City of Newport Beach that the Mayor and City Clerk are hereby authorized to execute an amendment to the SubLease, pursuant to which the City is authorized to utilize the leased property for parking and vehicular access purposes, a copy of which amendment is attached hereto as Exhibit "A ", and which a 0 amendment provides for the right, on the part of the City, to utilize the leased property, on a month -to -month basis, subject to the payment of rent as provided in the original agreement. ADOPTED this 25th day of April , 1983. City Clerk RSP /Elks .3 0 0 AMENDMENT TO LEASE WHEREAS, the City of Newport Beach, the Griffith Company and the Elks Lodge Building Corporation are parties to a SubLease dated April 28, 1958, which grants to the Elks Club the rights to use certain City property at the northerly end of Central Avenue for parking and vehicular access purposes; and WHEREAS, the Elks Club has purchased the interests of the Griffith Company to the original Lease, and is now the only party, other than the City, which has an interest in the Lease of the City property referenced above; and WHEREAS, the Lease referred to above expires on April 30, 1983, and the Elks Club is reluctant to execute a long- term Lease renewal until it has had a chance to further negotiate the terms of such a renewal; and WHEREAS, the present SubLease does not clearly establish that the City would have the right to continue to use the leased property, on a month -to -month basis, subsequent to termination of the Lease; and WHEREAS, the parties to the Lease wish to amend the provisions thereof, to clarify the rights and duties of the party subsequent to the termination of the Lease and prior to the execution of any long -term renewal thereof. .y 1. The terms of the original Lease, between the City of Newport Beach and the Griffith Company, dated August 1, 1952, and the original SubLease between the City of Newport Beach, Lodge Building Corporation and the Griffith Company, dated April 281 1958, are, except to the extent that they are inconsistent with the provisions of paragraph 2 of this amendment, repeated herein as though fully set forth at length. 2. Should the City of Newport BEach remain in possession of the demised premises after the expiration of this Lease, a new tenancy, from month -to- month, shall be created which shall be subject to all of the terms and conditions of this Lease, but shall be terminable by thirty (30) days' written notice, served, by either party, on the other party, in the manner prescribed by Section 1946 of the Civil Code of the State of California. In the event that a month -to -month tenancy is created by virtue of the holdover by the sublessee, the consideration to be paid shall be one - twelfth (1 /12th) of the amount paid for the twelve (12) month period immediately preceeding the date of termination of the Lease (April 30, 1983), with payment of said sum to be made on or before June 10, 1983, and on or before the 10th of each month thereafter, for so long as the City of Newport Beach is in possession by virtue of the provisions of this paragraph.. IN WITNESS WHEREOF the parties hereto have executed this agreement on the day and year first above written. LODGE BUILDING CORPORATION By By CITY OF NEWPORT BEACH By Mayor ATTEST: City Clerk RSP /Elks