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
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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