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HomeMy WebLinkAboutNB 3 BOYS CLUB REQ 12-15-80DATE: December 8, 1980 NEW BUSINESS Inter-Corn TO: HONORABLE MAYOR AND CIT~ COUNCIL FROM: DAN B~SHIP, CITY ADMINISTRATOR SUBJECT: REQUEST FROM ~USTIN BOYS' CLUB REGARDING RE-INCLUSION OF STRIP IN ~/~EIR T.RASE. Attached is a request from the Tustin Boys' Club that the City place the 40 foot strip back in their lease. The City Engineer, the Co~munityDevelo~nt Director and myself see no problem in doing this if Mr. Foster has definitely decided to not purchase the strip. We would therefore recor~aend that this he done, but that the Boys' Club be reminded that they cannot sublease the property without the City's permission nor can it be counted toward Mr. Foster's required parking without city approval. This reminder appears appropriate as the circ~-nstances, tone and timing of the letter from the Boys' Club attorney would seem to indicate some connection with the Foster development. Mr P~urke would prefer that the Boys' Club indicate their proposed use of the lar~ before such a re-inclusion of the land. The Boys' Club has not previously made a verbal or informal request to regain this strip for any purpose. The claim of "misrepresentations" by the City of Tustin an~ talk about "potential necessity of mandamus through the courts", does not correlate with the Club's need for a strip of land it has not previously found a way to use. Nor does it correlate with the fact that the Boys' Club sits on land leased fr~u the City at no cost to the Boys' Club. Perhaps my interpretation of the tone is a misunderstanding or inadvertant act on the part of the Club's attorney. In talking with the Executive Director of the BOys' Club, Cliff Polston, be assures me that there was no intention to imply misrepresentation by the City. I believe the Boys' Club serves a definite purpose to the Conmunity in providing youth services and I con~end their efforts. Some individuals do not appear to understar~ that a City cannot sell or lease property at below market rates for the gain of a private property owner. RECOMMENDED ACTICkN: Minute Order authorizing return of 40 foot strip to Boy's Club Lease but clarify relevant restrictions on sub-lease or use by others. (Alternative: request clarification by BOys' Club on proposed use of property before decision.) Respectfully submitted, DAN ~LNKENS I , /~ City D~]ministrator DATE: 12/3/80 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: J~ES G. ROURKE, CITY ATTORNEY SUBJECT: CITY PROPERTY ON SIXTH STREET The Council will recall that the Walter Foster Company requested that the City amend its lease with the Boys' Club of Tustin to delete an unused, weed-covered for[y foot strip that lies over a Metropolitan Water District easement just easterly of the Boys' Club building and permit it to be used by Foster Company as part of a parking lot to be developed with a proposed expansion of its facilities. The lease was amended and the strip appraised. When Mr. Foster learned of the appraisal figures ($67,500 fee value and $8,100 per year for lease value) he apparently was not interested. We advised him the only apparent alternative was for him to have the property'appraised and submit his appraisal for consideration by the City Council. We have not heard from him as to whether he is pursuing or is going to pursue this avenue. We have now received a letter from attorneys representing the Boys' Club (copy attached) requesting that the deleted property be re-leased to the Boys' Club and making various threats, based on inaccurate assumptions of the facts. A copy of our initial and only letter tO'and contact with the Boys' Club is enclosed. No misrepresentations were made in this letter or otherwise. However, the basic question is whether the Council wishes to re-lease this strip of unused property to the Boys' Club. Frankly, the circumstances and the manner in which this matter is being pursued suggests to us the possi- bility that there may be some thought in the Boys' Club's mind and/or Mr. Fosters that if the Boys' Club would regain this property that it would in turn make some arrangement directly with the Foster Company which would be, at the very least, of quite questionable legality and at worst, plainly illegal. JGR:se:D:12/2/80 Enclosures/- cc: D.B. ALVARADO, Rus & ~VJC_ CLELLAN November 24, 1980 James G. Rourke, Esquire City Attorney City Center Centennial at Main Tustin, CA Re: Lease, City of Tustin to Boys' Club of Tustin Dear ~. Rourke: Please be advised that this office has been retained by the Tustin Boys' Club relative to the recent "Amendment to Lease" entered between it and the City of Tustin. As you are aware such amendment was agreed to by our client as a result of the representations made in your letter of September 17, 1980 to our client to the effect that the deleted portion of the property leased by the Boys' Club was to be paved and landscaped by the Walter Foster Company as a part of that company's new development. Solely on such basis, and in consideration of such anticipated improvement, did the Boys' Club agree to any amendment in the belief the improvement would be to the mutual enhancement of all concerned. Our client has now been advised that in fact the Walter Foster Company does not intend to improve the deleted easterly 41.75 feet of the subject real property. Accordingly, it is our client's justified position that such amendment to the Boys' Club Lease may be rescinded not only by reason of lack of consideration, but because it was entered in reliance on misrepresentations made by the City of Tustin. This letter is written in the hope that a rescission .of the amendment to lease can be achieved absent the necessity of formal proceeding through the city counsel (by way of notice to the city clerk, etc.) and potential necessity of mandamus through the courts. As we believe the expense and adverse publicity incident - to a dispute between the City and a non-profit organization such as the Boys' Club should be avoided, if possible, your cooperation and suggestion for remedy is being first elicited- ~. Rourke Page 2 November 24, 1980 Please advise within ten (10) days as to the City's position in these regards. Your .courtesy in this matter is anticipated. Very truly yours, RU~h~ELLAN RONALD RUS RR:dkh CC: Boys' Club of Tustin Attn: Cliff Polston, Executive Director John Hurlbut, Jr., Esquire (Advisory Board) Rutan & Tucker Mike I~mell, Esquire (Director) Rutan & Tucker J September 17, 1980 Boys' Club of. Tustin 580 West Sixth Street Tustin, California 92680 ATTN: Cliff Polston RE: Lease, City of Tustin to Boys' Club of Tustin Dear Mr. Polston: A part of the property leased by the City of Tustin to the Boys' Club of Tustin, by the lease dated December 22, 1967, in- cludes an unused area lying between the Boys' Club building and the easterly property line. This strip is approximately forty feet wide. This strip of property was once used in conjunction with the lot (now owned by the Walter Foster Company) lying easterly of the Boys' Club property for playing fields, but'for a considerable period of time it has been largely, if not %;holly, unused, and is weed-covered and unsightly. The Walter Foster Company is about to develop their lot and upon completion of this development, this strip would simply be a neglected, unused and weed-covered area. Accordingly, it is proposed that this strip be paved and landscaped as part of the parking area to be placed on the adjacent Foster property. A map of the involved area is enclosed. Accordingly, the City requests that this strip be deleted from the lease between the City and the Boys Club. For that pur- pose we enclose herewith a form of Amendment to Lease which it is requested be executed on behalf of the Boys' Club of Tustin, signa- tures acknowledged before a Notary Public and returned to this office in the enclosed envelope. If you have any questions, please advise. Very truly yo.urs, / JAMES G. ROURKE JGR:se:D:9/15/80 Enclosures bcc: Dan Blankenship, w/encl Robert Ledendecker, w/encl ~'~lt~r F~t~r, w/cncl City ~nter Centennial at Main City Attorney Tustln. California 92680 {714} 544-8890