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