07-0306_BOYS & GIRLS CLUBS OF CAPISTRANO VALLEY_D5_Agenda Report 3/6/2007
AGENDA REPORT D5
TO: Dave Adams, City Manager
FROM: Karen Crocker, Community Services Director
SUBJECT: Consideration of an Amendment to the Real Property Lease (Boys & Girls
Clubs of Capistrano Valley)
RECOMMENDATION:
By motion, approve an amendment to the Real Property Lease dated June 1, 1999,
between the City of San Juan Capistrano and the Boys & Girls Clubs of Capistrano
Valley to include:
1. Adding real property at the south end of the gymnasium area for the Boys & Girls
Clubs of Capistrano Valley proposed teen center.
2. Revise the term of the Real Property Lease for a term of twenty-five (25) years
from effective date of the amendment agreement.
SITUATION:
Summary and Recommendation:
The Boys & Girls Clubs of Capistrano Valley, Board of Directors have requested a
modification to the organization's existing Real Property Lease with the City to allow the
expansion of the existing facility to permit the addition of approximately 7,000 square
feet for a proposed teen center (Attachment 1). The proposed teen center will have a
separate entrance from the existing Club and is intended to serve teenage members
(12-18 years of age), who are currently under-served.
Staff recommends approval of the lease amendment with revised provisions
(Attachment 2).
Background:
The Boys & Girls Clubs of Capistrano Valley opened its doors to begin serving the youth
of the community in 1991. Initially the Club was housed in a combination of a
warehouse and old classrooms at the Serra Continuation High School site. The Club
quickly was at capacity and served 200 members per day.
Agenda Report
Page 2 March 6, 2007
In 1997, the Club's Board of Directors began a capital campaign to raise money to build
a permanent facility adjacent to the City's new gymnasium. In August 1998, the City
Council approved a Memorandum of Understanding (Attachments 3 & 4), and in June
1999, approved the Real Property Lease to allow the Club to move forward with its plan
(Attachments 5 & 6). In July 1998, the Planning Commission approved the plan for the
current facility, and in the spring of 2000, the building was opened to the public. The
Club currently serves upwards of 400 youth per day with a membership approaching
2000.
When the Club was designed, it had a space of approximately 750 square feet set aside
as a gathering space for teen members between the ages of 13 and 18. Teens may use
any of the Club facilities, but tend to cluster together in the "Teen Room" which can
become very crowded. Concerns were raised by Club staff that the organization was
losing teen members because they did not want to continue to recreate with "little kids"
as the teens got older.
In an attempt to better define the needs of community teens, the Club sponsored a
Community Design Workshop on October 29, 2001. An open invitation was extended to
teens and community leaders. Approximately 25 people attended and participated. The
conclusion was that the City needed a teen center that could provide many of the same
programs as the current Boys & Girls Clubs of Capistrano Valley but in a separate
facility that was tailored for teens. The Club currently serves about 170 teens. The new
facility is expected to accommodate 850.
During the past five (5) years, the Boys & Girls Clubs of Capistrano Valley Board has
been preparing planning and design work, and has developed a concept plan for a new
teen facility (Attachment 7). In addition, fundraising activities have begun which has
resulted in donations and commitments for nearly one-half of the projected $4.2 million
dollar budget required for construction and operation. Actual construction is expected to
cost $2 million dollars. One million is planned for an endowment fund, $500,000 is to
pay off current debt, and the balance is for furnishings and initial operating costs.
The project is intended to be funded through private donations. To date, the Club has
raised over $2.1 million dollars in cash and pledges. Included in this is an earlier pledge
made by the San Juan Capistrano City Council of $200,000 and another for $50,000
from the City of Dana Point. The Club's Board expects to raise all of the remaining
funds before starting construction. Should all City approvals be accomplished, the Club
plans to start construction in late summer 2007. The $200,000 that the City of San Juan
Capistrano has pledged to the Boys & Girls Clubs of Capistrano Valley is to be used for
operational costs for the proposed teen center; therefore, if for some reason the
proposed teen center is not constructed, the $200,000 will be returned to the City.
The City of San Juan Capistrano has been budgeting $91,820 per year for funds to be
used by the Club for operating costs. The City of Dana Point has been giving $20,000
Agenda Report
Page 3 March 6, 2007
annually, but has indicated that this will increase to $40,000 next fiscal year. The
majority of the organization's operating funds came from private contributions and
grants.
Prior to completion of construction of the proposed teen center, City staff and Boys &
Girls Clubs of Capistrano Valley staff will be developing a revised Memorandum of
Understanding regarding operational issues of the proposed teen center. Due to the
nature of teens, some potential operational issues need to be mitigated such as loitering
in and around the Community Center/Sports Park complex, smoking, alcohol/drug use
and parking. Although staff does not see these issues as a deterrent to construct the
proposed teen center, these potential issues need to be addressed as proactive
measures.
Discussions about youth needs, design options, community financial support, and the
relationship of a permanent teen center to existing facilities have been in progress for
over five years. Feasibility studies conducted by the Boys & Girls Clubs of Capistrano
Valley Board, as well as preliminary fund raising, support the teen center concept
viability.
The Club's Board is now prepared to start through the City's site and architectural
review process. Before proceeding further with the project, staff and the Board is
requesting approval of the lease modification so the Club can move forward with the
certainty that once they receive the appropriate land use approvals, the Club will be
able to use the land area proposed. The Board understands that should the City Council
approve the lease modification, the project can only be built after receiving required
approvals within the City's planning process.
Project Description:
The addition will be a two-story structure attached to the south wall of the City
gymnasium and the Club's Community Room. The addition will require the use of
approximately 6,100 square feet of landscape area between the existing building and
the side walk to the south. The conceptual design has a site layout that will remove
6,100 square feet of landscaping at the south end of the gymnasium. It is planned that
the new building will be screened with mature plantings as depicted on the conceptual
rendering.
The proposed teen center will be designed to be flexible and will include a large game
room/lounge, a learning center, a multi-media/music room, a teen services room, a
workout room, and a number of multi-use spaces. The project as conceived will, when
combined with the shared use gymnasium, provide over 32,000 square feet of facilities
for the youth of San Juan Capistrano.
Agenda Report
Page 4 March 6, 2007
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
It is not necessary for the City Commissions to approve the amended Real Property
Lease. The site plan and architecture will require formal approval by the City's Design
Review Committee; Planning Commission; Parks, Recreation and Equestrian
Commission; and City Council. Council action on this item would amend the Real
Property Lease, but would not approve the conceptual design at this time. The
conceptual design will be processed subsequent to consideration of the lease.
FINANCIAL CONSIDERATIONS:
The City will not incur expenses with the amendment of the Real Property Lease.
NOTIFICATION:
James Littlejohn, Executive Director* Ken Friess, Volunteer Project Manager`
Jim Hernandez, HB&A Architects*
* Agenda Report included
RECOMMENDATION:
By motion, approve an amendment to the Real Property Lease dated June 1, 1999,
between the City of San Juan Capistrano and the Boys & Girls Clubs of Capistrano
Valley to include:
1. Adding real property at the south end of the gymnasium area for the Boys & Girls
Clubs of Capistrano Valley proposed teen center.
2. Revise the term of the Real Property Lease for a term of twenty-five (25) years
from effective date of the amendment agreement.
Respectfully submitted,
Karen Crocker
Community Services Director
Attachments: 1. Letter from Applicant
2. Amendment to Lease of Real Property Agreement
3. Memorandum of Understanding
4. Resolution for Original Negative Declaration
5. Original Real Property Lease
6. Resolution for Original Guarantee of Repayment of Construction Loan
7. Conceptual Design Rendering
8. Location Map
BOYS & GIRLS CLUBS
OF CAPISTRANO VALLEY February 7, 2007
Boys and Girls Clubs
of Capistrano Valley Dave Adams
One Via Positive City Manager
San Juan Capistrano,CA 92675
Tel 949.240.7898 City of San Juan Capistrano
Fax 949.240.7308 32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Lease Amendment to Allow Teen Center to be
Constructed Adjacent to the Existing City Gymnasium and Boys &
Girls Club Facilities
Dear Dave,
As you know the Boys & Girls Clubs of Capistrano Valley has
been working on a plan for five years to expand our current
facility to provide more services to the Club's teen population.
The expansion would entail approximately 7,000 square feet in
two stories at the parking lot side of the city gymnasium and the
existing Boys & Girls Club.
Over the past five years we have done alternative designs and
feasibility studies, as well as testing the waters of the local
community to determine if there is the support to successfully
carry out a capital campaign. We have also held concept
meetings with your predecessor George Scarborough, yourself,
members of the planning and the community services
departments, and with various city council members. Based upon
our studies and input from the various members of the community
with whom we have interacted we are convinced that we can
have a successful capital campaign, and will be able to
accomplish the expansion in a timely manner.
It is our desire to request the approval of a modification to the
lease the Boys & Girls Clubs of Capistrano Valley currently has
with the City. The modification would allow the addition of
approximately 6,100 square feet of land at the south end of the
gymnasium area between the building and the sidewalk. This
area would be used to create the 7,000 square foot two story
expansion. We feel the design will be very compatible with the
existing structures and will be an excellent addition to recreational
services for the youth of our community. We understand and
appreciate that even with City approval of the lease modification
we will still need to have the project approved by the appropriate
city boards and commissions.
It is our understanding that the City Attorney, John Shaw, has
prepared a lease agreement for consideration by the City
ATTACHMENT
FEB 13 2007
Council, and we are respectfully requesting that the review of the
BOYS & GIRLS CLUBS lease be scheduled for the March 6, 2007 City Council meeting.
OF CAPISTRANO VALLEY
Boys and Girls Clubs I am attaching a brief history of the Club for your review.
of Capistrano Valley
One Via Positiva Thank you for your consideration.
San Juan Capistrano,CA 92675
Tel 949.240.7898
Fax 949.240.7308
Sincerely,
James Littlejohn
Executive Director
A Brief Boys & Girls Club History
BOYS & GIRLS CLUBS
OF CAPISTRANO VALLEY
Boys and Girls Clubs The Boys & Girls Club begun in 1991 to serve a population of at
of Capistrano Valley risk teens. Initially it had a membership of 35.
One Via Positive
San Juan Capistrano,CA 92675 Within two years the Club had expanded at its original 2,800
Tel 949.240.7398 square foot site at Serra High School to serve over 100 youth
Fax 949.240.7308 s q g
each day.
In 1997, after the development of a strategic plan, the Club's
board of directors elected to start a capital campaign to raise the
money to install a permanent facility adjacent to the City's new
gymnasium and Community Center. The campaign raised 2 '/3
million dollars and construction was begun on a new 11,000
square foot facility under the approval and support of the City of
San Juan Capistrano.
In 2000 the Club opened in its new facility and the staff was
immediately overwhelmed with members. Since its first day the
Club has been serving 200 or more youth per day with a formal
membership approaching 1200.
From the opening of the new facility it was apparent that there
was inadequate space to serve youth between the ages of 13
and 18. In order to identify the best way to address the needs of
this youth group the Club sponsored a Community Design `
Workshop that was held on October 29, 2001 with an open
invitation to teens, and community leaders. The outcome of the
workshop attended by some 25 individuals was direction that a
separate facility designed exclusively for teens was needed within
the community.
During the ensuing years meetings have been held with various
San Juan Capistrano community groups including: City staff,
Rotary Club, The Youth Advisory Board, and the Seniors Club.
All of the groups have vigorously supported the developing facility
concept plans which were ultimately presented to the City's
Development Advisory Board in September 2006.
Currently the Club is awaiting approval of the lease it has with the
City of San Juan Capistrano that would allow the use of 6,100
square feet at the south end of the City's gymnasium to build a
two story 7,000 square foot Teen Center. The Club is serving
approximately 170 teens in the target group now. The new facility
will accommodate 850 members.
AMENDMENT TO LEASE OF REAL PROPERTY
AGREEMENT BETWEEN THE CITY OF SAN JUAN
CAPISTRANO AND THE BOYS & GIRLS CLUBS OF
CAPISTRANO VALLEY (FORMERLY KNOWN AS THE
BOYS & GIRLS CLUB OF CAPISTRANO VALLEY)
This Amendment to Lease of Real Property Agreement is made this
day of 2007, by and between the City of San Juan
Capistrano (hereinafter "Lessor"), and The Boys and Girls Clubs of Capistrano
Valley (hereinafter "Lessee"), formerly known as the Boys & Girls Club of
Capistrano Valley.
Whereas, On June 1, 1999, Lessor and Lessee entered into a certain
real property lease ('Real Property Lease") for certain property owned by the
Lessor in the City of San Juan Capistrano for the purpose of allowing Lessee
to construct a Boys & Girls Club center, and
Whereas, Lessor and Lessee desire to further amend the Real Property
Lease for the primary purpose of: (1) adding real property to the demised
premises; and, (2) extending the term of the real property lease, and
NOW, THEREFORE, in consideration of the foregoing, and the
covenants and conditions set forth below, Lessor and Lessee hereby mutually
agree as follows:
Section 1. Amended Leased Premises. The "Premises' as set forth in
the Real Property lease is amended to include the original leased property
plus that additional property generally depicted Exhibit A, labeled "Proposed
Teen Center," said Exhibit A being attached and incorporated herein by
reference. The parties agree and understand that the additional leased area is
to be developed by Lessee as a teen center.
Section 2. Lease Term. The term of the Real Property Lease will now
be for a term of twenty-five (25) years from effective date of this Amendment
agreement. The option granted by Lessor for an additional twenty-five (25)
year period, as provided for in section 4(a) of the Real Property Lease, shall
remain in full force and effect.
Section 3. Miscellaneous. (a) Section 8(d) of the Real Property Lease
is amended to read as follows:
"Lessee may encumber this Lease, its Leasehold estate and
its improvements thereon by deed of trust, mortgage, chattel
mortgage or other security instrument to assure the payment
of a promissory note or notes of Lessee, upon the express
condition that the net proceeds of such loan or loans shall be
ATTACHMENT 2
devoted exclusively to developing and/or improving the
leased Premises or for operating expenses of the Lessee.
The City allotted $200,000 to the Lessee for the proposed
teen center operations. If the teen center is not constructed
for any reason, the Lessee will return the $200,000
operational funds to the City."
(b) All other terms and conditions of the Real Property lease
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment as
of the date first above written.
CITY OF SAN JUAN CAPISTRANO
By:
Mayor Sam Allevato
Attest:
By:
Margaret R. Monahan
City Clerk
Approved as to form:
By:
John R. Shaw
City Attorney
BOYS & GIRLS CLUBS OF
CAPISTRANO VALLEY
By:
James Littlejohn, Executive Director
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MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (the "MOU") is made this 18th day of August,
1998, by and between the City of San Juan Capistrano (hereinafter referred to as "City"),
and the Boys and Girls Club of Capistrano Valley, a non-profit corporation (hereinafter
referred to as the "Club").
RECITALS:
WHEREAS, City owns certain vacant real property (hereinafter referred to as the
"Site") located within the City's Sports Park Complex which is situated in the City of San
Juan Capistrano, County of Orange, State of California, and more particularly described
in the site plan attached as Exhibit "A" to this MOU; and
WHEREAS, Club has proposed to City a plan to construct a Boys and Girls Club
facility (hereinafter referred to as the "Club Facility") consisting of approximately Eleven
Thousand (11,000) square feet to be located on the Site; and
WHEREAS the Club proposes to construct the Club Facility from funds consisting
of approximately One Million Eight Hundred Thousand Dollars ($1,800,000) to be collected
from a major fund raising drive; and
WHEREAS, the Club proposes to lease the Site from City in order to provide the
land for the Club Facility;
NOW, THEREFORE, BE IT MUTUALLY RESOLVED between City and Club as
follows:
Section 1. The Site and Description of Club Facility.
The Site consists of that real property as depicted on the Site Plan, attached as
Exhibit "A", and incorporated herein by reference.
The Club Facility is proposed to consist of approximately Eleven Thousand (11,000)
square feet. A footprint of the Club Facility is depicted-on Exhibit "A." The Site where the
Club Facility is proposed to be constructed is part of a larger parcel that will be used by
City for municipal purposes, including without limitation, a community center and a
gymnasium.
Section 2. Purposes and Uses of Club Facility.
i
The Site shall be leased to Club solely and exclusively for the purpose of
constructing, operating and maintaining the Club Facility to provide recreational and other
c:WgNAn60*pdocs�ogree%oys0s.agr -1- ATTACHMENT 3
I
social programs on a non-discriminatory basis to residents and other persons within the
Capistrano community pursuant to the bylaws, articles of incorporation and rules and
regulations of the Boys and Girls Club of Capistrano Valley as they currently exist or may
be amended in the future for the conduct of fund raising activities, and for such other
related or incidental purposes as may first be approved in writing by the City Manager.
The buildings and facilities to be built by Club are described for convenience on Exhibit
"B" attached hereto and incorporated herein by reference.
Section 3. City's Commitment to Grant a Lease Subiect to Terms of this
MOU/Funding Threshold Requirement.
City pledges that it shall enter into a lease with Club, providing mutual agreement
is reached between the parties on the terms of the leasehold, wherein the Site shall be
leased to the Club. This covenant is conditioned upon the condition precedent, however,
that Club shall raise through its fund raising drive the total sum of money equal to one-third
(1/3) the cost of constructing the Club Facility as described in this MOU. The Club
presently estimates that the total cost to complete the Club Facility is One Million Eight
2- Hundred Thousand Dollars ($1,800,000.) At such time as Club has reached a funding
commitment equal to one-third of the cost required to complete the Club Facility, then Club
shall provide written verification to City that Club has in its possession said funds.
Thereupon, City shall forthwith commence good faith negotiations with Club for the
purpose of consummating a leasehold arrangement between the parties.
The parties agree that the leasehold agreement shall contain a provision wherein
Club shall have secured funding commitments in a form and amount acceptable to City as
a condition precedent to City's grant of leasehold rights to Club.
Section 4. Term and Termination.
This MOU shall remain in full force and effect until such time as mutually rescinded
by the parties, or within two (2) years from date of execution of the MOU, whichever occurs
sooner.
Section 5. Subsequent Leasehold Performance Matters.
City and Club agree that the efficacious operation of the Club Facility is of
paramount importance to the parties because of the facility's proposed unique location
adjacent to the City's Community Center, a soon to be built gymnasium, and the City's
Sports Park complex. Accordingly, City and Club agree that, in the event the funding
commitment requirements of this MOU are met, a future lease of the Site to the Club shall
contain the following performance/default requirements:
c:\wpwin6OVwpdo \agrwboysgrts.agr -2- 08/05/98
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"Performance and Default Requirements.
1. Operational Issues.
In the event .that the Club experiences significant operational problems,
including but not limited to a lack of proper facilities' maintenance, a consistent
pattern of unresolved conflicts between City and Club, significant decline of
program participation below established goals, and unreasonable.and unresolved
police calls pertaining to Club Facility, then the City Council reserves the right to
consider initiating a process for the possible assumption of City interim day-today
club management for the purpose of insuring successful performance of the Club's
youth program.
The process shall be:
(a) The City Council may call for a hearing after giving written notice to
the Club for the purpose of requesting a Panel Review for any of the above-stated
operational problems.
"Panel Review" is defined to mean a Panel, "consisting of two (2)
members of the City Council, two (2) members of the Club's Board of Directors, and
two (2) members of the Capistrano Unified School Board, which shall conduct one
or more meetings in compliance with the Brown Act in review of the question put to
it by the City Council.
(b) If, after conducting a hearing, the City Council votes by simple majority
of its entire membership to initiate a Panel Review, then a written statement of the
issue shall be transmitted to the Panel for review.
(c) The Panel may elect to recommend to the City Council and the Club
that the management be assumed, or not assumed by the City, or, in the alternative,
recommend other appropriate courses of action.
(d) Thereafter, the matter shall be heard by the City Council as soon as
reasonably practicable. The Council shall not vote to assume the day-to-day
management in the event that the Panel recommends against such an assumption
of management.
The Club shall be given a full opportunity to address the City Council
regarding this matter prior to the City Council making a final determination on the
issue.
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c:WgwAn6ONwpdocs4gree\boysgrls.agr -3- 08/06/98
(e) In the event that the City Council unilaterally votes to assume the day-
to-day management of the Club on an interim basis and consistent with the steps
set forth herein, the City shall then deliver notice to the Club within twenty-four (24)
hours of such decision. The Club shall then take immediate steps to coordinate with
City.
In the event that the Club does not comply with this subsection, then
the leasehold shall be deemed to be void and forfeited by the Club.
2. Default.
Time and each of the terms, covenants and conditions hereof are expressly
made the essence of this Agreement.
If the Club shall fail to comply with any of the terms, covenants or conditions
of this Agreement, and shall fail to remedy such default within thirty (30) days after
service of a written notice from City, or to commence in good faith to remedy any
other default within thirty (30) days and thereafter diligently prosecute the same to
completion, or if Club shall abandon or vacate the leased Site, City may, at its
option, and without further notice or demand, terminate this Agreement and enter
upon the leased Site and take possession thereof, and remove any and all persons
therefrom with or without process of law."
The lease shall also contain a provision to be negotiated by City and Club relating
to the status of the title of the building improvements in the event of default of the
Agreement by the Club.
Section 6. Notices.
Any notices required to be given under this MOU may be served by depositing the
notice in the.U. S. mail, first class mail, postage prepaid. Service shall be deemed
complete upon the fifth day following deposit in the mail. Notices shall be sent to:
To City:
City of San Juan Capistrano
City Manager
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
c:\Wpwin60Wipdocs\agreeboysgrls.agr -4- 08/06/98
To Club:
Boys and Girls Club of San Juan Capistrano
Executive Director
31371 EI Camino Real
San Juan Capistrano, CA 92675
Section 7. Entire Agreement.
This MOU comprises the entire understanding between City and Club concerning
the use and occupation of the Site and Club Facility and supersedes all prior negotiations,
representations, or agreements.
IN WITNESS WHEREOF, the parties hereto have executed this MOU as of the day
and year first written above.
CITY OF SAN J AP TRANO
BY
it Jo
ATTEST: , Mayor
By:
Cheryl Joh n,tity Clerk
APPROVED AS TO FORM:
By:
John R'9-h tv,
City Attorney
BOYS AND GIRLS CLUB OF
SAN JUAN CAPISTRANO
By
ame L. Williams, Executive Director
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RESOLUTION NO. 98-8-18-2
CERTIFYING NEGATIVE DECLARATION AND APPROVING AMENDMENT
TO COMMUNITY CENTER CONCEPT PLAN- BOYS & GIRLS CLUB OF
CAPISTRANO VALLEY. INC. fSITE PLAN REVIEW 98-2)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, CERTIFYING ISSUANCE OF A NEGATIVE
DECLARATION AND APPROVING AN AMENDMENT TO THE COMMUNITY
CENTER CONCEPT PLAN APPROVALS TO ALLO W AN EXPANDED YOUTH
FACILITY TO BE INTEGRATED WITH THE COMMUNITY CENTER
LOCATED AT 25925 CAMINO DEL AVION (BOYS & GIRLS CLUB OF
CAPISTRANO VALLEY, INC./SITE PLAN REVIEW 98-2)
WHEREAS,at its meeting ofApril 15, 1997,the City Council considered a proposal
from the Boys&Girls Club of Capistrano Valley,Inc,to expand the planned youth services facilities
at the City's Community Center and to enter into a joint agreement for funding and constructing and
operating the facility; and,
WHEREAS, at its meeting of April 15, 1997, the City Council requested that the
Boys & Girls Club of Capistrano Valley, Inc., provide additional information before further
considering the merits of the proposal; and,
WHEREAS, the Boys & Girls.Club of Capistrano Valley, Inc., has submitted the
requested information, which was considered by the City Council at its meeting of May 19, 1998;
and, -
WHEREAS, at its meeting of May 19, 1998, the City Council adopted a public
participation program for reviewing the formal proposal by the Boys & Girls Club of Capistrano
Valley, Inc., and the amendment to the adopted Community Center Concept Plan; and,
WHEREAS, the City conducted a duly-noticed community workshop on June 11,
1998, for the purpose of introducing the format proposal from the Boys&Girls Club of Capistrano
Valley, Inc., to the cgmmunity; and,
WHEREAS,the Parks, Recreation and Equestrian Commission conducted a duly-
noticed public hearing on the proposal on June 29, 1998, and forwarded a recommendation of
approval to the City Council; and,
WHEREAS, the Environmental Administrator reviewed the project pursuant to
Section 15061 of the California Environmental QuaHry Act and issued a negative declaration and
caused a Notice of Negative Declaration to be posted pursuant to the City's Environmental Review
Guidelines, and any applicable mitigation measures have been included herein as conditions of
approval,and has otherwise complied with all applicable provisions of the California Environmental
Quality Act; and, Attachment 4
_1_
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON,City Clerk of the City of San Juan Capistrano,California,
DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No.
98-8-18-2 adopted by the City Council of the City of San Juan Capistrano,California,
at a regular meeting thereof held on the 18th day of August 1998, by the
following vote:
AYES: Council Members Swerdlin, Greiner, Campbell and
Mayor Jones
NOES: None
ABSTAIN: Council Member Hart
ABSENT: None
(SEAL)
CHERYL JOFIVSOW, CITY CLERK
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REAL PROPERTY LEASE
__Xhis Real Property Lease (the "Agreement") is entered into this day of
,J U ne_ 1999, by and between the City of San Juan Capistrano (hereinafter
"City"), and Boys&Girls Club of Capistrano Valley, anon-profit corporation, (hereinafter
"Lessee"I
RECITALS:
WHEREAS,Lessee desires to lease certain real property from City to construct and
operate a Boys and Girls Club facility, and
WHEREAS, City and Lessee have previously entered- into a memorandum of
understanding dated August 18, 1998 providing for certain terms and conditions governing`
the timing of the commencement of the lease and the operation of the Club facility,
NOW, THEREFORE, City and Lessee hereby mutually agree as follows:
Section 1. Lease of Premises.
City hereby leases to Lessee and Lessee hereby leases from City, in accordance with
the terms of this Agreement that certain vacant real property situated in the City of San Juan
Capistrano, County of Orange, State of California, more particularly described in Exhibit
"A", attached and incorporated herein by reference. The real property described in Exhibit
"A" and shown on the Site Plan, attached and incorporated herein by reference as Exhibit
"B", is hereinafter called the "Premises". The Premises consists of approximately Eleven
Thousand(11,000) square feet of land and is located adjacent to City's Community Center
facility:
Section 2. Purposes of the Leasehold.
(a). Construction of Lessee's Facility. The purpose of this lease is to enable
Lessee to acquire sufficient land to construct and operate a non-profit Boys & Girls Club
facility (the "Facility"). The site plan layout for the Facility is set forth in the Site Plan
attached as Exhibit "B".
(b) Timing of the Construction of the Facility. Lessee agrees to commence
construction of the Facility by not later than September 1, 1999. Completion of the Facility
shall occur by not later than August 1, 2001.
Attachment 5
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(c) Permitted Uses of the Facilites .Once,completed, Lessee's Facilityshall.
be used solely and exclusively to provide recreational and other social programs to persons
within the City consistent with Lessee's Articles of Incorporation, By-Laws, and other
relevant regulations. Other permitted uses are those as set forth in Exhibit "C," attached and
incorporated herein by reference. In the event that Lessee desires to expand these permitted
uses, then Lessee shall make formal application to the City Council for authorization to
expand uses.
Lessee covenants and agrees to use the Premises for the above-specified
purposes and to diligently pursue said purposes throughout the term hereof. In the event that
Lessee fails to use the Premises for said purposes, or uses the Premises for purposes not
expressly authorized herein, the Lessee shall be deemed in default under this Agreement and
subject to the termination provisions of section 5 of this Agreement Lessee shall not use the
Premises in any manner which disturbs the quiet enjoyment and use of the adjacent
community center, gymnasium, or Sports Park Complex.
Lessee further covenants and agrees not to use, or permit the use of, the
Premises or any portion of the Premises in any manner or for any purpose that is in any way
in violation of any valid law, statute, ordinance or regulation of tate United States, the State
of California, the City of San Juan Capistrano, or any other federal, state, county, or local
governmental agency, body or entity with applicable legal jurisdiction.
(d) Condition and Maintenance of Facility and Improvements. Lessee shall
assume full responsibility and costs for the maintenance of the Premises and Facility
throughout the tern of this Agreement Lessee shall take all necessary action to maintain and
preserve the Premises in a decent, safe,healthy and sanitary condition satisfactory to Lessee
and in compliance with all applicable laws. In addition, the parties intend to enter into a
memorandum of understanding to further define specific obligations with respect to common
area maintenance.
Section 3. Lessee's Funding of Project as Condition Precedent to Effective Date of
Leasehold.
(a) Funding in Place As a Condition Precedent. This lease shall not become
legally effective until such time as Lessee has presented written proof to.City that: (a) it
raised sufficient funding xo finance one hundred percent(100"/o) of the estimated cost-,of the
project, or such lesser amount as determined_bythe Office of the City Manager, and(b)'
a
secured a legal commitment for at leastone million -dollar ($1;000;000) back up
construction loan from a bona fide commercial bank lender.
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City aclmowledges that Lessee has arranged for a construction loan of up to S1,300,00
from American Sterling Bank. City hereby agrees to guarantee the repayment of said loan
in the event of a default by Lessee. Lessee agrees, however, to expend at least $300,000 of
its current cash on hand as first dollars in toward payment of construction progress payments
as construction on the project begins. In addition, it is the intent of the parties that a
$500,000 federal grant shall be expended for construction costs at such time that the federal
grant is made available to the Lessee.
(b)Limitations on Lender's Security Interest Lessee shall insure that any loan
documents with its commercial lender will allow City to assume title to the improvements
and take over the remaining loan balance then owed to the bank in the event of default by
Lessee on its bank loan. Accordingly, Lessee covenants to require its lender to subordinate
its lien rights against Lessee in the event of a loan default
Section 4. Term and Termination of Lease.
(a) Term.. Thu lease shall be for a tens of twenty (25)years from date of
its execution. City grants an option to Lessee to extend this Agreement for an additional 25
year period on the same terms and conditions as set forth in this Agreement providing; i)that
Lessee delivers a written notice to City requesting an exercise of the option to renew at least
180 days prior to the termination of the Agreement, and ii) that City's City Council has not
made a finding and determination at any time 30 days prior to the twenty five year term that
Lessee has demonstrated a consistent pattern of non-compliance with the terms and
conditions of this Agreement over the life of the lease.
(b) dial Termination Provisions. Failure to Commence Use. In addition
to all other remedies available to it, City may terminate Lessee's tenancy upon written notice
given at any time if Lessee fails to commence to construct the buildings;and facilities shown
on the Site Plan and Land Use entitlements within two (2)years,.orm
.to comence actual use
of the Premises for the authorized uses within four(4)years from the date of commencement
of the tenancy. Termination of tenancy shall not be construed as a waiver of other remedies.
(c) Abandonment by Lessee. .In the event that Lessee breaches this
Agreement and abandons the Premises, or terminates the use thereof for a period of sixty
(60) days in any one hundred and twenty (120) day time period, the Lessee's tenancy shall
terminate. Termination of tenancy shallnot be construed as a waiver of other remedies.
(d) Quitclaim of Lessee's Interest.' On termination of this lease for any
reason, Lessee shall deliver to City a quitclaim deed in recordable form quitclaiming all its
rights in and to the Premises, including the constructed facilities, subject to the terms of
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Section 3. Lessee or its successor-in-interest shall deliver the same within five(5) days after
receiving written demand therefor. City may record such deed only on the expiration or
earlier termination of this Agreement If Lessee fails or refuses to deliver the required deed,
the City may prepare and record a notice reciting Lessee's failure to execute this lease
provision and the notice will be conclusive evidence of the termination of this Agreement
and all.Lessee's rights to the Premises.
(e) Surrender of Premises. At the expiration or earlier termination of
Lessee's tenancy, Lessee shall surrender the Premises to City free and clear of all liens and
encumbrances, except those resulting from City activity, or lions and encumbrances which
existed on the date of the execution of this Agreement by City. The Premises, when
surrendered by Lessee, shall be in safe and sanitary condition, free from hazardous or toxic
waste or material, environmental pollution or other contamination and shall be in as good
condition as at the commencement of this Agreement, absent normal wear and tear.
(f) Time of Essence. Time is of the essence of all the terms, covenants,
conditions and provisions of this Agreement.
Section 5. Performance and Default RN19E M. .
(a) Operational Issues. In the event that the Lessee experiences significant
operational problems, including but not limited to a lack of proper facilities maintenance, a
consistent pattern of unresolved conflicts between City and Lessee, significant decline of
program participation below established goals, and unreasonable and unresolved police calls
pertaining to Lessee's Club Facility, then the City Council of City reserves the right to
consider initiating a process for the possible assumption by City of interim day-to-day Lessee
Club management for the purpose of insuring successful performance of the Lessee's Club
youth program.
The process shall be:
0)The City Council of City may call for a heating after giving written
notice to Lessee for the purpose of requesting a Panel Review for any of the above-stated
operational problems.
"Panel Review" is defined to mean a Panel, consisting of two (2)
members of the City Council,two(2)members of the Club's Board of Directors, and two (2)
members of the Capistrano Unified School District, which shall conduct one or more
meetings in compliance with the Brown Act in review of the question put to it by the City
Council.
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(2) If, after conducting a hearing, the City Council votes by simple
majority of its entire membership to initiate a Panel Review, then a written statement of the
issue shall be transmitted to the Panel for review.
(3)The Panel may elect to recommend to the City Council and the Club
that the management be assumed, or not assumed by the City, or, in the alternative,
recommend other appropriate courses of action.
(4)Thereafter,the matter shall be heard by the City Council as soon as
reasonably practicable. The Council shall not vote to assume,die:day-today management
in the event that the Panel recommends against such-an assumption of management.
The Club shall be given a full opportunity to address the City Council
regarding this matter prior to the City Council making a final determination on the issue.
(5) In the event that the City Council unilaterally votes to assume the
day-to-day management of the Club on an interim basis and consistent with the steps set
forth herein, the City shall then deliver notice to the Club within twenty-four(24) hours of
such decision. The Club shall then take immediate steps to coordinate with City.
In the event that the Club does not comply with this subsection,then the
leasehold shall be deemed to be void and forfeited by the Club.
(b) Default. If Lessee shall fail to comply with any of the terms, covenants
or conditions of this Agreement, City shall serve a written notice of default upon Lessee.
Lessee shall cure such default within thirty (30) days, providing such default can be
reasonably cured within thirty (30) days. If the default requires more time to cure, then
Lessee shalt commence the cure within thirty(30) days'notice of the default and complete
the cure within a reasonable period of time as specified by the City notice of default. If the
Lessee still has not cured the default, then City may, at its option, and without further notice
or demand, terminate this Agreement and enter upon the Premises and take possession
thereof, and remove any and all.persons therefrom with or without process of law.
Section 6. Rent.
In consideration of the public benefits Lessee will provide to the community, no rent
shall be required for this leasehold.
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Section 7. Insurance and Indemnity..
(a)Insurance RW&w nts Lessee shall maintain at all times during the term
of this lease satisfactory general liability and premises liability insurance in the amount of
not less than One Million Dollars ($1,000,000) and reasonable fire insurance in a form
acceptable to the Office of the City Attorney. City shall be named as an additional named
insured. Other terms and conditions, including.cancellation provisions and endorsement
forms, shall be reviewed and approved by the Office of the City Attorney.
(b)Indemnity Lessee shall indemnify, save and defend City, its elected and
appointed officials, and employees harmless from and against any and all claims, demands,
suits, actions and proceedings, of any kind or nature, for damages to property or injuries to
or death of any persons arising out of Lessee's actions and activities as Lessee of the subject
Premises.
City shall indemnify, save and defend Lessee, its directors and employees,
harmless from and against any and all claims, demands, suits, actions and proceedings, of
any kind or nature, for damages to property or injuries to or death of any persons due solely
to the perforntuice of any action by City under this Lease.
Section 8. Improvements/Liens/Encumbrances and Related Matters.
(a)Nature and Orality of Improvements. Lessee shall,at Lessee's sole cost and
expense, construct or cause to be constructed on the Premises the building and facilities
described in the Site Plan in the manner and according to the terms and conditions specified
herein. Lessee shall construct the building project for the permitted use herein, subject to
prior receipt of applicable city land use permits. Minor,technical deviations between the
plans and specifications and in field construction activity shall not be deemed to constitute
a breach of this Agreement. However, Lessee shall insure that it will coordinate with its
contractor and city staff to insure that the final construction is satisfactorily consistent with
Lessee's plans and specifications for the Facility.
Lessee agrees that its contractor shall provide faithful performance and labor
and materials bonds equal to one hundred percent (100%) of the cost of the project. In
addition, Lessee shall insure that its contractor maintains general comprehensive liability
insurance in an amount of at least One Million Dollars ($1,000,000) combined single limit.
The bonds and the insurance shall both be pre-approved by the Office of the City Attorney._
The project shall be constructed in accordance with all valid laws, ordinances,
regulations and orders of all federal, state, county, or local governmental agencies or entities
e:\wpwu�60\wpdxc�boys8.glVase,ag -6' 05MI99
NOV-20-2001 10:15 NOSSAMAN GUTHNER KNOX ELL 949 833 7878 P.09i16
having jurisdiction over said Premises, including City, provided, however, that any structure
or other improvement erected on said Premises, including the building project, shall be
deemed to have been constructed in full compliance with all such valid laws, ordinances,
regulations, and orders when a valid final certificate of occupancy entitling Lessee and
tenants of Lessee to occupy and use the structure or other improvement has been duly issued
by the Building Department of the City. All work performed on said Premises pursuant to
this lease or authorized by this lease shall be done in a good, quality manner and only with
new materials of good quality and high standard.
(b)Utilities. Lessee agrees to order, obtain, and pay for all utilities and service
and installation charges in connection with the development, occupation and operation of the
leased Premises. Lessee shall, at Lessee's sole cost and expense, construct or cause to be
constructed all facilities necessary to provide utilities,including but not limited to, telephone,
electric, gas, water, sewer and cable television service to the Premises. All utility service
lines shall be placed underground unless otherwise permitted by City. Lessee shall be
responsible for payment of all applicable utility service, connections, standby or other fees,
rates or charges.
(c) Liens. Lessee shall not, directly or indirectly, create, incur, assume or
suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect
to all or any portion of the Premises without the prior written consent of City.
(d)Encumbrances. Lessee may encumber this Lease, its leasehold estate and
its improvements thereon by deed of trust, mortgage, chattel mortgage or other security
instrument to assure the payment of a promissory note or notes of lessee,upon the express
condition that the net proceeds of such loan-or loans shall be devoted,exclusively_to the
purpose of developing and/or improving the leased Premises.
In addition, any such indebtedness shall be subject to the qualifications set
forth in Section 3(b) of this Agreement.
(e) Taxes. Except to the extent that Lessee is exempt from payment of
property taxes or possessory interest taxes, Lessee shall pay, before delinquency, all taxes,
assessments, and fees assessed or levied upon Lessee or the Premises, including the land, any
buildings, structures, machines, equipment; appliances, or other improvements of property
of any nature whatsoever erected, installed, or maintained by Lessee or levied by reason of
Lessee's activities related to the a Premises, including any licenses or permits.
(f) Signs. Lessee shall not erect or display any banners, pennants, flags,
posters, signs, decorations,marquees, awnings, or similar devices or advertising without the
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prior written consent of City. If any such unauthorized item is found on the Premises, Lessee
shall remove the items at its expense within twenty-four(24)hours of written notice thereof
by City, or City may thereupon remove the item at Lessee's cost. All signs located on the
Premises shall comply with the provisions of any City ordinance regulating signs.
Section 9. Ownership of Improvements.
(a) Title Ownership. Any and all buildings, facilities, and improvements
placed or erected on the Premises as part of said building project or otherwise under this
Agreement', as well as any and all other alterations, additions,improvements; and fixtures,
except furniture and trade fixtures, made or placed in or on said Premises by Lessee or
another person shall be considered the personal property of the Lessee and on expiration or
sooner termination of this Lease shall remain on said Premises and become, at City's option,
the property of City free of all liens and claims except as otherwise provided for in this
Agreement.
(b) Removal of Improvements. If City elects not to assume ownership of all
or any improvements,trade fixtures,structures and installations, City shall so notify Lessee
in writing thirty (30) days prior to termination or one hundred eighty (180) days prior to
expiration, and Lessee shall remove all such improvements, structures and installations as
directed by City at Lessee's sole cost on or before Agreement expiration or termination. If
Lessee fails to remove any improvements, structures, and installations as directed, Lessee
agrees to pay City the full cost of any removal.
(c) Repairs. If any removal of such personal property by Lessee results in
damage to the remaining improvements on the Premises, Lessee shall repair all such damage
to the same condition as existed immediately before such removal.
Section 10. No Assignments.
Lessee shall not assign or hypothecate in any manner this Agreement without the
express written consent of City.
Section 11. Force Majeure.
If the performance by any party of its obligations or undertakings under this
Agreement is interrupted or delayed by any occurrence not occasioned by the conduct of
either parry to this Agreement; whether that occurrence is an act of God or public enemy, or
whether that occurrence is caused by war,riot, storm, earthquake, or other natural forces, or
by the acts of anyone not a party to this Agreement,then that party shall be excused from any
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further performance for whatever period of time after the occurrence is reasonably necessary
to remedy the effects of that occurrence.
Section 12. General Provisions.
(a)Notices. All notices, demands, consents, or other communications required
to be given under this Agreement shall be accomplished by fust class mail, postage prepaid,
and deposited in the U.S. mails, or personally served upon the other party at the address
identified below. The address for delivery of notice can be changed by either party by giving
written notice of the new address.
To City:
George Scarborough, City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
To Lessee:
W. run Williams
Executive Director
Boys & Girls Club of Capistrano Valley
31371 El Camino Real
San Juan Capistrano, CA 92675
(b)Attorney's Fees. In the event any legal action or proceeding is commenced
to interpret or enforce the term of, or obligations arising out of, this Agreement, or to
recover damages for the breach thereof the parry prevailing in any such action or proceeding
shall be entitled to recover from the non prevailing party all reasonable attorney's fees, costs
and expenses incurred by the prevailing party.
(c) Entire Agmemenj. This Agreement contains the entire agreement of the
parties hereto with respect to the matters covered hereby, and no other previous agreement,
statement or promise made by any party hereto which is not contained herein shall be
binding or valid.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written_
CITY Of SAN JUAN CAPISTRANO
By:
Jo Greiner, Mayor
ATTEST:
Y
Cheryl John , C' Clerk
APPROVED AS TO FORM:
l
By:
John R. Shaw, Ci Attorney
BOYS & GIRLS CLUB OF
C TRANO VALLEY
L r
anwpw;n60\wpd=b0YL&zr1Vv aw -10- - 05/25/99
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RESOLUTION NO.. 99-6-176,
GUARANTEE OF REPAYMENT OF CONSTRUCTION LOAN-AMERICAN
STERLING BANK(BOYS &GIRLS CLUB OF CAPISTRANO VALLEY)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA; RELATING TO A CONSTRUCTION LOAN
GUARANTEEFROMAMERICAN STERLING BANK FOR THE BOYS&GIRLS
CLUB OF CAPISTRANO VALLEY FACILITY AT THE COMMUNITY CENTER
SITE
WHEREAS,the Boys&Girls Club of Capistrano Valley(the"Club") has entered
into a lease with the City of San Juan Capistrano providing for the lease of approximately 11,000
square feet of City-awned land to the Club; and,
WMREAS,the Club will construct on the lease land,a Boys& Girls Club facility
as depicted on the site plan attached to the lease; and,
WHEREAS, the Club will construct the facility with a combination of funding,
including the availability of a line of credit(construction loan)from American Sterling Bank in the
amount of$1,300,000;and,
WHEREAS,the City has agreed in the subject lease to guarantee the repayment of
the construction loan in fall in the event of a Club default.
NOW,THEREFORE,BE IT RESOLVED,by the City Council ofthe City of San
Juan Capistrano that the City of San Juan Capistrano does hereby guarantee the repayment of that
certain construction loan in the amount of up to$1,300,000 to American Sterling Bank in the event
of a default by the Boys & Girls Club of Capistrano Valley.
PASSED, APPROVED, AND ADOPTED this ter day of
June ' 1999.
HN GREINER, MAYOR
ATTEST:
CITY CLE ATTACHMENT 6
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THE CITY OF
kg,7 SAN JUAN CAPISTRANO
Amendment to Real Property Lease
(Bova &Girls Clubs of Capistrano Vallev)
-!7
A
Boys &Girls Clubs of Capistrano Valley
1 Via Positiva, San Juan Capistrano, CA 92675
L5
F
70 0 3000 6000 9000 Feet
Attachment 8