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00-0801_STROSCHER ENTERPRISE_Agenda Report_D6 11/16/2004 6 AGENDA REPORT TO: Dave Adams City 9 Mana erg FROM: Douglas D. Dumhart, Economic Development Manager SUBJECT: Consideration of Rent Increase to License Agreement for Parking on the Corner of EI Camino Real and Ortega Highway (APN 124-170) (Stroscher Enterprise Partnership) RECOMMENDATION: By motion, approve the First Amendment to the License Agreement for parking at EI Camino Real and Ortega Highway parking lot with Stroscher Enterprise Partnership, increasing monthly rent to $6,000. SUMMARY: On August 1, 2000, the City approved a License Agreement to place a temporary public parking lot on the northeast corner of EI Camino Real and Ortega Highway, site of the former Arco fueling station. The temporary public parking lot was put in place to accomplish several goals. They were: a. To eliminate a blighted nuisance created in the heart of the Downtown when the gas station was razed in 1999. b. To create additional public parking to meet the increasing demand in the Downtown. c. To place a desirable temporary use on the property until a larger redevelopment project could be fostered. The City has received a request from Stroscher Enterprise to increase the monthly License fee from $3,000 to $6,000. Stroscher Enterprise is seeking the increase to assist with improvements to their adjacent property, the Mission Inn. Stroscher Enterprise's letter is provided as Attachment 1 to this report Maintaining the current inventory of public parking and making improvements to the Mission Inn are in the best interest of the City. Additionally, continuing the License to offer temporary public parking provides the greatest flexibility to consider larger redevelopment opportunities associated with the 1-5/Ortega Highway interchange improvements in the future. Agenda Report Page 2 November 16, 2004 To that end, staff recommends the City Council approve the First Amendment to the License Agreement provided as Attachment 2 to this report. FINANCIAL CONSIDERATIONS: The License Agreement remains on a month-to-month basis and either party can terminate with thirty (30) days notice. Stroscher Enterprise is only seeking a $3,000 per month increase for the next thirty-six (36) months; the fee would be rolled back to the current rate should the parties continue the license beyond that term. Staff had been approached about the possible fee increase late last year. The fee increase was budgeted for the FY 04/05 and this requires no budget adjustment. NOTIFICATION: * Ted Stroscher, Stroscher Enterprise * Debra Campbell, OCMA * Michael Johnson, Esq. * Ilse Byrnes, Blas Aguilar * Stan Wylazlowski, Chamber of Commerce * Tom Scott, SOCCT * Mechelle Lawrence, Mission San Juan RECOMMENDATION: By motion, approve the First Amendment to the License Agreement for parking at EI Camino Real and Ortega Highway parking lot with Stroscher Enterprise Partnership, increasing monthly rent to $6,000. Respectfully submitted, Z zo,4A 0 Douglas D. Dumhart Economic Development Manager Attachment(s): 1. Stroscher letter dated Sept. 16, 2004 2. First Amendment to License Agreement STROSCHER PROPERTIES 31882 DEL OBISPO, SUITE 200 SAN JUAN CAPISTRANO, CALIFORNIA 92675 TEL (949) 661-5711 FAX (949) 661-7146 September 16, 2004 Mr. Dave Adams City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Re: Parking Lot License Agreement Dear Mr. Adams, Pursuant to our recent meeting, please find enclosed the First Amendment to the License Agreement. Based on our verbal discussions, we have increased the rent to $6,000.00 per month for 36 months. This is in response to the city's offer to assist us with the rehabilitation of the Mission Inn. This rent increase will help us with the expenses of landscaping and common areas, signage, soundproofing, air-conditioning, pool and patio repair, and other expenses which will increase the attractiveness of the Mission Inn. Any increase in business will mean an increase in the Transit occupancy Tax. Thank you for helping us with this improvement. Sineer , Te troscher �. Managing Partner Stroscher Enterprise TS:1m , �: `��- . J 11 rt J 1 20-04 Cy ATTACHMENT 1 FIRST AMENDMENT TO LICENSE AGREEMENT FOR GENERAL PUBLIC PARKING This First Amendment to the License Agreement, hereinafter("Amendment") is made on the 1 st day of October 2004, by and between Stroscher Enterprise, a California General Partnership, hereinafter referred to as Licensor, 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, hereinafter referred to as Licensee. Whereas, on or about August 1, 2004, Licensor and Licensee entered into that certain License Agreement ("License") covering that certain parcel of land located at the corner of EI Camino Real and Ortega Highway in San ,Tuan Capistrano, described as Assessor=s Parcel Number 124-170-14; and Whereas, Licensor and Licensee desire to hereby amend certain provisions of the License. Now, therefore, be it mutually resolved, between the Licensor and Licensee as follows: Covenants Section 4. Consideration: Commencing October 1, 2004, the monthly consideration shall increase to $6,400.00 per month in advance, and shall continue for 36 months. Commencing October 1, 2007 the monthly consideration shall decrease to $3,000.00 per month in advance. All other terms and provisions of Section 4., and the Other Sections of the License, shalt remain unchanged and in full force and effect. ATTACHMENT 2 In Witness Whereof, the parties have read and understood the above Amendment. City of San JuanCa istrano (Licensee): Joe Soto, Mayor St_rosche Enterprise Partnership(Licensor): The lore H. oscher, Partner Approved as to Form: John S , City Attorney Attest: Meg Monahan, City Clerk