1981-1119_HUSBY, KNUT_Ground Lease AgreementGROUND LEASE AGREEMENT
THIS GROUND LEASE, made and entered into this 19th day
of November 1981 , by and between KNUT HUSBY
hereinafter called "OWNER," and the CITY
OF SAN JUAN CAPISTRANO, ereinafter called "CITY."
WITNESSETH:
WHEREAS, OWNER owns certain real property located in the
City of San Juan Capistrano, County of Orange, State of California,
more particularly described in Exhibit "A" attached hereto and by
this reference made a part hereof; and
WHEREAS, City desires to use a portion of the aforesaid
property for a multimodal transportation terminal.
NOW, THEREFORE, in consideration of the foregoing facts
and the terms and conditions hereinafter contained, OWNER hereby
leases to CITY that unimproved real property, hereinafter called
"Premises" and described in Exhibit "A."
1. TERM. The term of this lease shall be for a period
of fifty (50) years commencing on the date upon which construction
of the multimodal terminal upon the premises is commenced. Should
the commencement date occur on a day other than the first day of a
calendar month, the lease term shall continue for a period of fifty
(SO) years from the first day of the next full calendar month
following the commencement date.
2. WARRANTY OF TITLE. OWNER covenants that he is vested
with good and sufficient tee title in and to the premises, and that
there are no restrictions, encumbrances or limitations of whatsoever
kind or nature other than those shown in the title documents which
would prevent CITY from using the premises as a multimodal transporta-
tion terminal and related uses.
3. USE OF PREMISES. The premises shall be used as a parking
area in conjunction with a multimodal transportation terminal and such
uses as are reasonably related thereto.
4. RENT. City shall pay OWNER the total sum of
$31,578.51
Ground Lease Agreement
Page 2
5. IMPROVEMENTS. All improvements constructed upon
the premises by orlon ee alf of "CITY" shall be and remain the
exclusive property of "CITY" or its successors or assigns, during
the term of this lease. "CITY" shall bear all expenses in connec-
tion with the improvement of the premises and shall save "OWNER"
harmless therefrom.
6. CHARGES. "OWNER" agrees to pay or cause to be paid,
before delinquency, any and all public charges levied, that would
accrue if the property had not been used as a multimodal transporta-
tion center, assessed or imposed or which may become payable during
the term hereof upon the premises and any improvements thereon
installed or located on the premises by "OWNER." Any charges that
would be imposed upon the property solely because of its use as a
multimodual transportation center over and above the aforementioned
charges shall be paid by the CITY.
7. ASSIGNMENT AND SUBLETTING. "CITY" will not assign
or sublet the premises without the prior written consent of the
State and "OWNER." Upon any assignment or subletting of this
ground lease, "City" shall not be relieved of any liability or
obligation hereunder.
8. OPTION TO RENEW. So long as CITY is not in default
in the performance of any terms or condition of this lease on its
part to be performed, it shall have an option to renew this lease
for an additional period of 50 years or such lesser time as may
be mutually agreed upon between the parties hereto, their respec-
tive heirs, successors or assigns. The rental shall be negotiated
and mutually agreed upon at the time of extension; the remaining
terms and conditions shall, however, continue in full force and
effect. If neither party notifies the other before the end of the
inital term, the term shall be deemed to have been automatically
extended for an additional 50 year period.
9. SUCCESSORS AND ASSIGNS. This lease shall be binding
upon and inure to the benefit of the successors and assigns of the
parties hereto.
10. DEFAULT. "CITY" shall be deemed in default under
the terms of this lease if "CITY" shall fail to perform or observe
any covenant, condition, or agreement to be performed by "CITY"
under this lease, and such failure shall continue for a period
of sixty (60) days after written notice from "OWNER" to "CITY"
specifying the nature of the default. In the event of a default
by "CITY," "OWNER" may, without taking possession of the premises,
require strict performances of all covenants and obligations herein
as the same shall accrue and have the right of action therefor.
Ground Lease Agreement
Page 3
41
IN WITNESS WHEREOF this Lease was executed in duplicate
as of the date first above written.
CITY OF SAN JUAN CAPISTRANO
G'„ s
By
GARY L. HAUSDORFER, MAYOR
ATTEST:
MARY ANN HANOVER, CITY CLERK
APPROVED AS TO FORM:
AMES S. OKAZAKI, CITY ATTORNEY
By
KNUT HUSBY
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5. APPROVAL OF AMENDMENT TO GROUND LEASE - MULTI-MODAL
TRANSPORTATION TERMINAL
✓(38) Written Communications:
(88) 1) Report dated February 3, 1981, from the Administrative
Assistant to the City Manager forwarding an amendment
to the Ground Lease Multi-Modal Transportation
Terminal Agreement. Knut Husby and Sue DiMaio, joint
owners of land which will become part of the multi-
modal terminal, have requested an amendment to the
ground lease agreement previously approved by Council.
The amendment covers parking requirements, the
construction of their building, and a rental arrangement
should the building not be constructed.
(Z) Memorandum dated February 17, 1981, from the City Clerk
advising that Mrs. DiMaio had requested that the matter
be deferred for 30 days to allow further review.
Conditional Approval of Amendment:
It was moved by Councilman Buchheim, seconded by
Councilman Friess and unanimously carried to approve
the proposed Amendment as submitted; staff was
authorized to make minor adjustments to the Amendment
with the approval of the City Attorney and the
applicants; any proposed major adjustments to the
Amendment are to be returned for Council review.
•
MULTI -MODAL TRANSPORTATION TERMINAL
u(38) Councilman Auchheim commended the Director of Community
(88) Planning and Development for the content of the
January 26, 1981, letter addressed to Knut Husby
regarding the proposed multi -modal parking lease and
development approval for the adjacent project.
AGENDA ITEM
TO:
FROM:
SUBJECT:
SITUATION:
0
James S. Mocalis, City Manager
40
February 3, 1981
Pamela Hallan, Administrative Assistant
Amendment to Ground Lease, Multi -Modal Transportation
Terminal (Husby/DiMaio)
Knut Husby and Sue DiMaio, joint owners of land which will become
part of the multi -modal terminal, have requested an amendment to
the ground lease agreement previously approved by Council. The
amendment covers parking requirements, the construction of their
building, and a rental arrangement should their building not be
constructed. If Council agrees with the amendment, it will be
presented to Mr. Husby and Mrs. DiMaio for their approval and
brought back to Council for execution.
FINANCIAL CONSIDERATIONS:
It is essential that the original lease agreements be signed as
soon as possible. Funds cannot be drawn from the State without
the signed lease. The owners are reluctant to sign without the
amendment. One difficulty with the amendment is that it ties the
City to certain contingencies. While these eventualities may
never occur, they do commit the City to future financial obligations.
ALTERNATE ACTIONS:
1. Approve the proposed amendment as submitted.
2. Approve the proposed amendment with changes.
3. Request further information.
RECOMMENDATION:
By motion, approve the proposed amendment as submitted.
Respectfully submitted,
Pamela Hallan
PMH:ch
Attachment FOR CITY COUNCIL AGENDA •.
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