HomeMy WebLinkAbout06 LEASE AGREEMENT WITH THE BOYS AND GIRLS CLUBAgenda Item 6
Reviewed:
AGENDA REPORT City Manager
Finance Director 7/A
MEETING DATE: MARCH 18, 2014
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: CHUCK ROBINSON, DEPUTY CITY MANAGER
SUBJECT: LEASE AGREEMENT BETWEEN THE BOYS AND GIRLS CLUB
AND THE CITY OF TUSTIN
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In December 22, 1967, the City of Tustin and the Boys and Girls Club entered into a lease
agreement (agreement) for 50 years to allow for the Boys and Girls Club to operate at
580 W. 6"' Street, Tustin, CA 92780 for the cost of $1.00 per year and other conditions as
outlined in the agreement. Subsequently, the lease was amended three separate times
(1980, 1981, and 1982) and is due to expire December 22, 2017.
The City of Tustin and Boys and Girls Club have concluded negotiations regarding a new
agreement that covers certain legal concerns related to eminent domain and alike.
Attached is the proposed agreement effective March 18, 2014 for a term of 40 years or
unless earlier terminated in accordance with the provisions with the proposed lease.
BACKGROUND:
Several of the key differences between the existing agreement and the proposed
agreement are outlined In the following summary:
• Term of the agreement shall be 40 years;
• "14.0 Non - Discrimination, Civil rights and other prevailing compliance
requirements. The Boys and Girls Club agree to abide by the following sub-
sections of the aforementioned Non - discrimination clause which include but are not
limited to: Equal Opportunity, Obligation to refrain from discrimination, No
discrimination, ADA compliance, Prevailing wage requirements;
• "15.5 Termination by either Party as Result of Eminent Domain. (protects the City
of Tustin and Boys and Girls Club);
15.5.1 in the event that title to the whole of the Leased Premises shall be lawfully
condemned or taken in any manner for any public or quasi - public use or conveyed
in lieu of condemnation, this Lease shall automatically terminate as of the date
possession is required to be delivered to the condemnor. In the event that only a
portion of the Leased Premises is taken and the Leased Premises are thereby
rendered, in Lessee's reasonable opinion, unsuitable for the conduct of Lessee's
business, either party may terminate this Lease as of the date when possession of
the portion of the Leased Premises so taken is delivered to the condemning
authority;
15.5.2 In the event of any eminent domain, Lessee, by signing this Lease hereby
waives any and all rights of any type, kind or amount and releases Lessee and City
of Tustin against any and all claims Lessee might have under the U.S. or State
Constitution or State Law for the loss of goodwill, the value of the Leasehold
interest and Lease improvements, and relocation assistance, including but not
limited to any such or similar rights prescribed by any state, federal or local law or
regulation and waiving all rights to just compensation under the U.S. and California
Constitutions."
RECOMMENDATION:
Staff recommends that the City Council direct the City Manager to execute the attached
lease agreement between the Boys and Girls Club and the City of Tustin.
FISCAL IMPACT:
There is no negative fiscal impact.
CORRELATION TO THE STRATEGIC PLAN:
Strategy 6, assess and explore opportunities for expanded recreational activities; A,
develop a plan for creating recreational amenities and services for Southwest Tustin; by
implementing a joint use agreement with the Boys and Girls Club.
BACKGROUND:
Attachments: Lease Agreement dated 1967
Proposed Lease Agreement