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1997-0107_CAPISTRANO DEPOT_Sub-Lease Agreement1 This Sub -Lease Agreement is dated as of this seventh {7th) day of January, 1997 by and between Capistrano Depot LLC, a California Limited Liability Company (the "Sub -Lessor") and the City of San. Juan Capistrano, a municipal corporation, duly organized and existing under and by virtue of the laws of the State of California (the "Sub -Lessee") for the use of forty (40) parking spaces in the Capistrano Depot parking lot. COVENANTS Whereas, the proprietor of the Capistrano Depot has an improved 99 space parking lot to the north of his establishment as part of its Sub -Leased premises under the terms of its Sub -Lease with Manna Station (the "Master Sub -Lessor"); and Whereas, the City of San Juan Capistrano has constructed improvements for a 78 space parking lot to the east of the Capistrano Depot; and Whereas, it is in the City's best interest to ensure the economic vitality of its local small business by ensuring adequate parking and traffic circulation for their patronage; and Whereas, Sub -Lessor desires to better utilize its parking facility; Now, therefore, be it resolved, that in consideration of the above mentioned covenants, the parties hereto agree as follows: Section L Description of Sub -Leased Premises Sub -Lessor Sub -Leases to Sub -Lessee the forty (40) most northerly parking spaces, subject to the conditions hereof, on the premises located in Orange County, State of California known as Assessor's Parcel No. 121-141-17, and more particularly described in Exhibit A. Section 2. Sub -Lease Payment Sub -Lessee shall pay to Sub -Lessor fifty (50%) percent of all revenues received from metering of spaces due to the Sub -Lessor fifteen (15) days after each month for the previous month's receipts. Sub -Lessee agrees to meter spaces for not less than twenty five cents (250) per hour with a two dollar ($2.00) per day maximum. Payment shall start from the Calendar month following completed installation of metering equipment. Section 3. Use ,of„Property Sub -Lessee shall be entitled to use the property from 6:00 A.M. to 6:00 P.M., Monday through Friday to be made available to the general public for long term parking. Sub -Lessee shall be responsible for enforcement of vehicle parking during the public parking period specified in this section. Sub -Lessor shall be responsible for enforcement of vehicle parking at all other tunes. Section 4. Term: Extensions The term of this Sub -Lease shall be for one (1) year to commence upon execution of this agreement. This agreement shall be extended for one (1) additional year, every year thereafter, unless Sub -Lessor terminates Sub -Lessee right by providing written notice thereof, not less than ninety (90) days prior to the anniversary date contained on the first line of Agreement. Sub -Lessee may exercise its termination by providing Sub -Lessor with 30 days notice in writing per Section 9 below. Upon termination all metering equipment, signage or other devises utilized to collect deposits shall be removed from the premises and is property of the City. Premises shall be restored to its original state upon removal of metering equipment. Section 5. _Additional Consideration, Maintenance and Operation It is expressly understood and agreed that the rental herein and above are in consideration of the right to occupy and use the Sub -Leased premises throughout the entire terra, and except as herein provided, it is the responsibility of the Sub -Lessor to provide such right. In the event of destruction or damage to the Sub -Lease premises by an insured casualty or events, so that premises becomes wholly or partly unusable and the Master Lessor and, the Sub- lessor elect to rebuild, repair, the sub -leased premises so that they shall be restored to use, this Sub - Lease shall remain in full force and effect. It shall be the responsiblitiy of the Sub -Lessor, to maintain property in useable safe condition and in good repair and free of garbage, litter, debris or weeds which may accumulate upon the premises. The cost for the common area maintenance (CAM) charges, plus any taxes pursuant to Section 6 below, shall be allocated between the Sub -Lessor and the Sub -Lessee in proportion to a ratio which considers the number of spaces Sub -Leased, the hours of Sub -Lease and the number of days Sub -Leased compared to the total operational use of the parking facility. Specifically the Sub -Lessees portion. of the monthly CAM charges shall be determined using the following formula and an example has been provided as Exhibit "B." umber of Sub -Lease Space) Sub -Lease Hours 12hrs. umber of Sub -Leased DUs.per month (Total plumber of Spaces) (Total Fours 18 hrs) (Number of Days per month) It shall be the Sub -Lessees responsibility to provide and maintain appropriate equipment, services, and signage for the metering of sub -leased spaces at its own expense all costs for meter 2 operation shall be born by the Sub -Lessee. Section 6. 'T'axes It is understood between the parties that the portion of the Parking Facility that is dedicated to long term public parking for the benefit of commuter use and Sub -Leased by the City should be exempt from the imposition of property tax, and that therefore such taxes as are unposed should represent only the value of the commercial use of the parking facility. if it is determined that the Sub -Leased spaces dedicated to public parking are exempt from property tax, then. Sub -Lessor agrees to pay any property taxes assessed on the Sub -Leased premises. Sub -Lessee shall assume responsibility for payment of said taxes according to the following formula: CAM Formula x Sub -Leased Area x Land Value x Property Tax Rate. Total Land Area Section 7. Assignments Sub -Lessee may not assign, sell, transfer or hypothecate its Sub -Leasehold under this Sub - Lease Agreement or sublet any portion of the Sub -Leased premises. Section 8. Attor nty's Fees In the event that Sub -Lessor or Sub -Lessee is required to file a legal action to enforce the terms of this Sub -Lease Agreement, the prevailing party shall be entitled to all costs incurred in connection with such an action, including reasonable attorney's fees. Section 9. Notice Any notice required to be served pursuant to this Sub -Lease Agreement shall be effective upon posting in the United States mail, first class, with postage prepaid addressed to the following parties: The City of San Tuan Capistrano City Manager 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Marina Station Post Office Box 485 Laguna Beach, CA 92652 3 Capistrano Depot LLC 26701 Verdugo Street San Juan Capistrano, CA 92675 Section 10. Exhibits Incorporated Exhibits "A" and "B" are attached to and incorporated in this Sub -Lease agreement by reference. Section 11. Entire Agreement This Sub -Lease Agreement contains all of the agreements of the parties and cannot be amended or modified except by written agreement, executed by all parities hereto. Section 12. Law Governing This Sub -Lease is made in. the State of California under the Constitution and laws of such state and is to be so construed. In Witness Whereof, the parities day of 1997. APP VEIL AS T . is rd K. Denhalter City Attorney C:\DOUGLASIAGREEMN'I \DEPOLEAS.AGR have executed this Sub -Lease Agreement this CAPISTRANO DEPOT LLC By Capistrano Depot Company, Inc it �Denr age, elide . CONSE T TO SUB -LEASE Russell Singer, W6a ,Stab n Diaster Lessor 4 Mission EXHIBIT "B" FORMULA FOR CALCULATING MONTHLY COMMON AREA MAINTENANCE CHARGES Example: (40)(12)(20) = 900 = 18% (99) (18) (30) = 53,460 5 Monthly CAM = $150.00 $150.00 x 18% = $27.00 $27.00 = City's share January 13, 1997 Mr. Dennis Burrage Capistrano Depot LLC 26701 Verdugo Street San Juan Capistrano, J i3 P bfSfPBi€1d=.0 tics California 92675 nCapistrano Depot Parking Re: Sub -Lease greemet T , Dear Mr. Burrage: At their meeting of January 7, 1997, the City Council of the City of San Juan Capistrano took action to approve a Sub -lease Agreement with the Capistrano Depot and Manna Station which would provide for use of 40 parking spaces in the Capistrano Depot lot by the general public for long-term parking between the hours of 6:00 a.m. and 6:00 p.m., Monday through Friday. The Sub -lease Agreement further provides for a 50% split of all revenues received from metering of the designated spaces. The City Council also introduced an ordinance which added the 40 spaces to the City's parking meter zone. The ordinance is scheduled for adoption on January 21, 1997 and will become effective 30 days thereafter. A fully -executed copy of the Sub -lease Agreement is enclosed for your files. Please feel free to contact Douglas Dumhart at 443-6316 if you have any questions. Very truly yours, I Cheryl John n City Clerk Enclosure cc: Russell Singer Douglas Dumhart 32400 PASEO AOELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-9974 MEMBERS OF THE CITY COUNCIL COLLENE CAMPBELL JOHN GREINER ;l[�A?p8 A€;� WYATT HART I�6I GIL JONES DAVID M. SWERDLIN o CITY MANAGER �.„1 GEORGE SCARBOROUGH nCapistrano Depot Parking Re: Sub -Lease greemet T , Dear Mr. Burrage: At their meeting of January 7, 1997, the City Council of the City of San Juan Capistrano took action to approve a Sub -lease Agreement with the Capistrano Depot and Manna Station which would provide for use of 40 parking spaces in the Capistrano Depot lot by the general public for long-term parking between the hours of 6:00 a.m. and 6:00 p.m., Monday through Friday. The Sub -lease Agreement further provides for a 50% split of all revenues received from metering of the designated spaces. The City Council also introduced an ordinance which added the 40 spaces to the City's parking meter zone. The ordinance is scheduled for adoption on January 21, 1997 and will become effective 30 days thereafter. A fully -executed copy of the Sub -lease Agreement is enclosed for your files. Please feel free to contact Douglas Dumhart at 443-6316 if you have any questions. Very truly yours, I Cheryl John n City Clerk Enclosure cc: Russell Singer Douglas Dumhart 32400 PASEO AOELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-9974 AYES: Council Members Campbell, Greiner, Hart, Tones, and Mayor Swerdhn NOES: None ABSENT: None 2. SUBLEASE AGREEMENT WITH CAPISTRANO DEPOT FOR. FORTY 40 PARKING SPACES (,600.20 Written Communication: Report dated January 7, 1997,.from Douglas Dumhart, Management Analyst II, recommending that the City enter into a sublease agreement with the Capistrano Depot to allocate 40 of their 99 spaces for commuter parking, with the City to share revenues from metering these spaces at a minimum of $2.00 per day. ADproval of Sublease A reement: It was moved by Council Member Jones, seconded by Council Member Hart, and unanimously carried that the Sublease Agreement with Capistrano Depot LLC be approved for the Depot to allocate 40 of their northernmost spaces for commuter parking, with the City to share 50% of its revenues from metering these spaces. The City Manager was authorized to execute the Agreement on behalf of the City. 3. PROPOSED ORDINANCE AMENDING TITLE 4 CHAPTER 4 SECTION 4-4.02 OF THE MUNICIPAL CODE - PARKING METER ZONES TO ADD A PORTION OF THE CAPISTRANO DEPOT NORTH LOT 570.30 Written Communication: Report dated January 7, 1.997, from. Douglas Dumhart, Management Analyst II, recommending that an Ordinance be introduced Amending Title 4, Chapter 4, Section 4-4.02 of the Municipal Code to permit the establishment of metered parking for the 40 northernmost parking spaces subleased by the City for commuter parking within the Capistrano Depot parking lot. Introduction of Ordinance Establishing Metered Parking for a Portion of the Capistrano Depot North Parkin Lot: The City Clerk read the title of the Ordinance next in order. Further reading of all Ordinances had been waived earlier in the meeting. It was moved by Council Member Jones, seconded by Council Member Hart, that the following Ordinance be introduced: City Coumil Minutes _1 L- L7197 AGENDA ITEM January 7, 1997 To: George Scarborough, City Manager From: Douglas Dumhart, Management Analyst 11 Subject: Consideration of Sub -lease Agreement with Capistrano Depot for Forty (40) Parking Spaces RECOMMENDATION: By motion, approve the Sub -lease Agreement with the Capistrano Depot for 40 parking spaces. SUMMARY: In October of 1995 the Community Redevelopment Agency sold the Capistrano Depot. The parcel. of land included the 99 space parking lot to the north, parallel to the railroad tracks. While the Agency was in possession of the property from 1982 to 1995 the parking was primarily treated as part of the public parking inventory. Upon the sale these spaces became private property for the use of patrons and employees of the Depot. Since the new owners have taken over operations and enforced customer and employee only parking it has been observed that the lot is under utilized Monday thru Friday. It has also been observed over the last year the intensification and re -tenanting of Mission Promenade has created more demand for employee parking in the Downtown. A plan to relocate commuters from the Mitchell lot (on El Camino Real) to the under utilized Depot spaces and use the Mitchell lot 'for downtown employee parking only is being proposed for City Council consideration. This concept is laid out in more detail under separate cover in the Agenda packet entitled "Consideration of Modification to Downtown Employee Parking Permit Program." The relocation of the commuters to the Capistrano Depot lot would be complementary utilization of these spaces that go unused during the week. Staff has prepared a Sub -lease Agreement with the Capistrano Depot for 40 of their 99 spaces. The Sub -lease is provided as attachment A to this report. The arrangement requires the City share revenues from metering of the subleased spaces. To meter these spaces requires three steps. They are: 1.) Amend the meter ordinance to include this zone for metering; and, 2.) Adopt resolutions establishing rates and hours of collection; and, 3.) Authorization to purchase meter equipment. Each step is provided for under separate cover in the January 7, 1997, agenda packet. F 0 -'Ri C flpf C 0 U'A'Qf_,3 L "', C, �,-r 1 � " 4 +, , " " , AGENDA ITEM BOARDSICOMMITTEE REVIEW: January 7, 1997 A meeting was scheduled with all businesses that are issued employee parking permits to review the proposal. All present supported the concept of a parking lot dedicated for employees only. Their concerns focused around sufficient security of an employee designated lot and ensuring adequate inventory of spaces. The City Council requested staff present the proposal to the Chamber of Commerce Economic Development Committee (EDC) for their input. The EDC's comments reflected those of the downtown merchants regarding security and inventory but also supported the concept for better utilization of downtown parking. FINANCIAL CONSIDERATIONS: The Sub -lease requires the City meter spaces at no less than $2.00 per day and share the receipts from metering 50150. The City will also be responsible for 13 - 17% of the Common Area Maintenance cost and the purchase and operation of metering equipment. The City's costs are expected to be $50 per month with an annual maintenance and operations cost of $480.00. The cost of the parking meters is approximately $20,000 and more details regarding the equipment can be found in the Agenda Item entitled "Consideration of Purchase of Parking Meter device." The first year estimated costs for this proposal is $21,377 and subsequent years costs are $1.50 per year. Anticipated revenue from metering is $15,000 annually of which 50% is paid to lessor. This results in an approximate 36 month pay back period. NOTIFICATION: Roger Crawford Capistrano Depot LLC 26701 Verdugo Street San .Tuan Capistrano, CA 92675 Russell Singer Manna Station Post Office Box 485 Laguna Beach, CA 92652 ALTERNATE ACTIONS: 1. By motion, approve the Sub -lease Agreement with the Capistrano Depot for 40 parking spaces. AGENDA ITEM January 7, 1997 2. By motion, approve the Sub-Iease Agreement with. the Capistrano Depot for 40 parking spaces subject to modifications. 3. Refer to staff for additional information. RECOMMENDATION: By motion, approve the Sub -lease Agreement with the Capistrano Depot for 40 parking spaces. Respectfully Submitted, Z41 Douglas D. Dumhart Management Analyst II Attachment: Sub -lease Agreement DDD:jr Mission n . ... ".. I iiii" EXHIBIT "B" FORMULA FOR CALCULATING MONTHLY COMMON AREA MAINTENANCE CHARGES Example: (40) (12)(20 = 9,600 = 18% (99) (18) (30) = 53,460 5 Monthly CAM = $150.00 $150.00 x 18% = $27.00 $27.00 = City's share CITY CLERIC'S DEPARTMENT- ACTION REMINDER TO: Douglas Dumhart, Management Analyst 11 FROM: Dawn M. Schanderl, Deputy City Clerk DATE: September 1, 1997 SITUATION: At their meeting of January 7, 1997, the City Council approved a Sub -lease Agreement with the Capistrano Depot and Manna Station which would provide for use of 40 parking spaces in the Capistrano Depot lot by the general public. ACTION REQUESTED: The tern of Sub -Lease is one (1) year or January 7, 1998. The agreement shall be extended for one (1) additional year, every year after, unless Sub -Lessor terminates Sub -Lessee right by providing written notice thereof, not less than ninety (90) dates prior to the anniversary date contained on the first line of Agreement. Please notify this office if agreement will be extended for One (1) year or terminated. ACTION TO BE ".WAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: x DATE SIGNED: ' ***FOR CITYONLY* ** T t cliler.bate: 09/01/97 Deadhiv Date: 01/07/98 cc: Department Ifead city Attorney (a'epot/F 00.30)) ypy 6,o AUG2 9 1997