1993-0921_TEXACO REFINING & MARKETING, INC_Lease AgreementSecond Amendment to Lease Agreement
This Second Amendment to Lease Agreement (this "Second Amendment") is
made and entered into this LlSt day of 5c-rL-m ibF-PQ - 1993, by and
between SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENTAGENCY,
a public body corporate and politic, 32400 Paseo Adelanto, San Juan Capistrano,
California 92675 (hereinafter called "Lessor"), and TEXACO REFINING AND
MARKETING INC., a Delaware corporation (hereinafter called "Lessee").
RECITALS:
A. Lessor acquired the real property located at 26874 Ortega Highway from
the Diocese of Orange on December 29, 1987, for the purpose of developing the
Historic Town Center and realignment of Ortega Highway. At the time of Lessor's
acquisition, the real property was leased to Lessee for use as a Texaco service
station, pursuant to that certain lease dated December 11, 1962 between the
Catholic Archbishop of Los Angeles, predecessor in interest to Lessor and Texaco
Inc., predecessor in interest to Lessee (the "Lease").
B. Subsequent to acquiring said real property, Lessor then determined that it
did not need to utilize the Texaco site until 1989 and entered into an extension of
the existing Lease for one full year. This Lease was then allowed to continue in
effect on a month-to-month basis.
C. The Lessor has now determined that it will not need to utilize the Texaco
site for at least two (2) years. Therefore, Lessor will agree to extend the term of
the lease for a period of at least two years provided Lessee agrees to reduce the
area of the leased premises and construct certain improvements including the
grading and paving of 26,000 square feet of Lessor's property.
D. Lessor and Lessee desire, therefore, to extend the Lease, reduce the area
of the leased premises and provide for Lessee's construction of certain
improvements on portion of Lessor's property as further described below.
AGREEMENT
Now, therefore, in consideration of the foregoing recitals which are incorporated
herein by this reference, and the terms and conditions set forth in this Second
Amendment, the parties hereby agree as follows:
Page 1
1. The Lessor and Lessee agree to extend the Lease until such time it
becomes necessary to vacate the property to pursue the actual construction of
the Ortega Highway realignment or until the City of San Juan Capistrano is ready
to move forward with some other use on the site, but in either case, no less than
two years from the execution of this Second Amendment.
2. For consideration of the extension of the Lease term, the Lessee will
complete, at no cost to the Lessor, the precise grading, paving, post and chain
fencing, striping and signage of a 26,000 square foot area of Lessor's property
as shown on the site plan, Page 2 of Exhibit B, and stripe and sign a new parking
layout on that portion of leased property as depicted on the site plan, Page 1 of
Exhibit B attached hereto (collectively referred to herein as "Improvements").
3. Said Improvements shall commence promptly after upon complete
execution of this Second Amendment and shall be completed within a reasonable
time, but not more than 120 days from the execution of this Second Amendment.
4. Lessor's acceptance of said Improvements shall constitute completion of
Lessee's obligation.
5. Effective as of the acceptance date of said Improvements, the leased
premises shall consist of that area identified as the unshaded portion on the site
plan attached hereto as Exhibit A.
6. Lessor and Lessee hereby grant mutual rights of ingress and egress for the
term of this extension upon the leased premises and upon that area removed
from the leased premises by this extension, as shown on Exhibit A, to permit
access by Lessor, Lessee and the employees and invitees of each to those
portions of each described property that are not otherwise accessible.
7. Except to the extent the Lease is modified by this Second Amendment, the
remaining terms and provisions of the Lease shall remain unmodified and in full
force and effect. If any ambiguity exists between this Second Amendment and
the Lease, this Second Amendment shall control.
8. In the event of any controversy or dispute related to or arising from this
Second Amendment, the prevailing party, whether in court or by way of
out-of-court settlement, shall be entitled to recover from the non -prevailing party
reasonable attorney's fees, court costs and other expenses relating to such
controversy, including, without limitation, reasonable attorney's fees, court costs,
and other expenses incurred on the appeal, if any or in the collection of any
judgement.
Page 2
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9. Exhibits A and B are attached to and incorporated in this Second
Amendment by reference.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date and year above written.
Approved as to form:
K. Denhalter, Agency
Attest
SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY
(Lessor)
Carolyn airman
TEXACO REFINING AND
MARKETING, INC.
(Lessee)
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Exhibit B
Page 1 of 2
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SAN JUAN CAPISTRANO, CA - SS #2
26874 ORTEGA HWY. h EL CAMINO
FIRST MODIFICATION OF LEASE
THIS AGREEMENT entered into between SAN JUAN CAPISTRANO COMMUNITY
DEVELOPMENT AGENCY, a public body corporate and politic, 32400 Paseo Adelanto,
San Juan Capistrano, California 92675 (hereinafter called "Lessor"), and TEXA-
CO REFINING AND MARKETING INC., a Delaware corporation (hereinafter called
"Lessee").
RECITALS:
(a) On December 11, 1962, The Roman Catholic Archbishop of Los An-
geles, a corporation sole, and Lessee entered into a lease agreement, a memo-
randum of which was recorded on March 3, 1964, in Book No. 6946, Page 558,
Official Records of Orange County, State of California, to lease to Texaco
Inc, certain property in the City of San Juan Capistrano, County of Orange,
State of California, which property is more particularly described in said
lease.
(b) On July 26, 1976, The Roman Catholic Archbishop of Los Angeles
transferred all of its right, title and interest to The Roman Catholic Bishop
of Orange.
(c) On November 7, 1977, said lease was modified to extend the term
of the lease for five (5) years with an option to extend the term for an addi-
tional period of five (5) years thereafter.
(d) By global assignment effective December 31, 1984, Texaco Inc.
assigned all of its right, title and interest in said lease to Lessee.
(e) Lessor acquired all of the right, title and interest of The
Roman Catholic Bishop of Orange, in and to said lease on December 29, 1987.
IT IS AGREED between the parties as follows:
(1) The following new paragraphs are hereby added to said lease:
0 - 2 - 0
(31) Lease Extension: Lessor and Lessee agree to extend the term of
this lease for an additional one (1) year period, commencing May 1, 1988,
and ending on April 30, 1989, on the same terms and conditions except
that:
(a) After April 30, 1989, said lease shall become a month-to-month
lease, terminable by either Lessor or Lessee upon one (1) month's notice,
commencing May 1, 1989;
(b) Lessor shall at no time be obligated to pay relocation benefits
to Lessee as a result of termination of said lease; and
(c) Lessor and Lessee shall execute a termination of the Memorandum
of Lease recorded on March 3, 1964, in Book No. 6946, Page 558, Official
Records of Orange County, State of California, upon termination of said
lease.
In all other respects said lease, as modified on November 7, 1977,
and as modified herein, continues in full force and effect.
Dated: �/f
DPM: as
LTPX300/1-ION
SAN JUAN CAPISTRANO COMMUNITY
DEVELOPMENT AGENCY
By
-LESS
TEXACO REFINING AND /MARKETING INC.
By
"LESSEE"
• • K
r -
, MEMORANDUM April 20, 1995
TO: George Scarborough, City Manger
FROM: Douglas Dumhart, Management Analyst II
SUBJECT: Mission Texaco - 26874 Ortega Hwy,
W.W. Irwin Company of Long Beach has pulled the demolition permit for the service
station and fuel tanks. Attached is the approved permit application.
Donald Meyers of W.W. Irwin indicated they will begin razing the structure on May 15,
1995. They expect removal of the station and tanks to take three (3) days.
Environmental cleanup will follow and there is no telling how long this process will take.
When the job is complete Texaco will cover the site with asphalt.
I will keep you apprised of events as they mature
DDD/cb
Attachment
DEMOLITION PER"IT APPLICATION (Coe 'hued)
1 0 0
Cultural Resource Approval �� APPROVED By •
Date
El DENIED
Conditions /
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Engineering Division 2/A;�VID BY— Date —#-A*
7 DENIED f f
Conditions / Comments
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Land Use Division —Date
DENIED
Conditions/ Comments A10" roc +A)D #,411v,5 .fpfewleAfb ",ve opt. o SSE'
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Comm. Development Division APMOVM BY
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Conditions /
U P a x 31 R 0 1 V A 7 0 L
IV. FINAL ACTION TAKEN
[eAPPROVED F1 DENIED
PROSECT CjKD1NA7
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MEMORANDUM March 23, 1995
TO: George Scarborough, City Manager
FROM: Douglas D. Dumhart, Management Assistant II
SUBJECT: Texaco Station Status
Pursuant to your request I have reviewed the Texaco Lease to investigate the lessee's requirement
and timetable for removal of the station. Unfortunately, the lease acquired with the property is
extremely vague in regard to abandonment of the premises.
The original lease was entered into by the Catholic Church and Texaco Corporation in 1962. The
lease has two amendments. The first amendment was created when the Agency acquired the property
from the church. The second amendment occurred when Texaco desired an extension to the lease
so they could amortize station repairs and improvements.
In reviewing the lease agreement and its two amendments, nothing can be gleaned from them that
handles the process of vacating the premises. In other words, I do not believe anyone expected the
lessee to prematurely terminate and thus, the agreement provides only provisions for termination by
lessor,
Section (4) of the 1926 lease states " Ownership and Removal and Property. All building .
improvements, fixtures, equipment, and other property owned by the lessee, or erected of placed on
said premises by lessee during the term of the lease, or any extension or renewal and thereof, shall
be the property of and belong exclusively to the lessee free from any liens or encumbrances. It is
understood that the lessee has the right to remove of replace buildings, fixtures, aboveground
equipment, underground tanks and other removable property at any time during the term of this lease
at its sole discretion, and that upon termination of this lease as herein provided orotherwise the
fixtures- equipment and other propeM owned by thelessee or erected or placed upon said premises
by the lessee. It is understood, however, that the lessee is under no obligation to remove the same
or any part thereof but that in the event of lessee's failure to do so within ( 30 ) days after the date
of the termination of this lease, such buildings and improvements not removed from said premises
shall become the sole property of the lessor".
This provision indicates that Texaco does not have to remove the station if they do not want to.
Texaco has indicated to me that they would but did not give a timetable when that would happen.
During exploratory drilling for contamination they discovered some steak bones. The City dispatched
the archeological consultant to investigate the borings. Attached are the results of those observations.
In my opinion, everything is proceeding nicely and any aggressive action will only create additional
delays and possibly cost the City or Agency. Should we condition demolition permits with to mane
requirements they may decide to leave us with the station and demolition costs.
Texaco.mem
1-1 L
SEPTEMBER 21, 1993
E
REGULAR MEETING OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment Agency was
called to order by Chairman Nash at 7:40 p.m. in the City Council Chamber.
ROLL CALL PRESENT: Carolyn Nash, Chairman
Jeff Vasquez, Vice Chairman
Collette Campbell, Director
Gary L. Hausdorfer, Director
Gil Jones, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; Richard K. Denhalter, Agency Counsel/City
Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; Dick Bobertz, Planning
Manager; William Huber, Director of Engineering and Building Services; Ronald C. Sievers, Director of Public
Lands and Facilities; At King, Jr., Director of Community Services; Nancy Bernardi, Recording Secretary.
The Minutes of the Regular Meeting of August 17, 1993, were approved as submitted as part of the City Council
Consent Calendar.
PUBi. C HEARINGS
— —'� 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - SECOND AMENDMENT TO
LEASE AGREEMENT FOR PROPERTY LOCATED AT 26574 ORTEGA HIGHWAY
(CONTINUED FROM SEPTEMBER 7. 1993)
PropQsal
Consideration of a Second Amendment to the Lease Agreement with Texaco for the use of alternative
parking at the rear of the Mission Texaco site and at the two dirt lots located on EI Camino Real (the
Love and Mitchell lots) to accommodate approximately 50 temporary parking spaces during the
construction of the Multi -Modal Parking Deck. The station would continue their station operation. The
Second Amendment would extend the existing lease for a minimum of two years, and all landscaping
costs would be borne by the City. The hearing was continued from the meeting of September 7, 1993,
so that staff could respond to issues regarding market rent and modifications to the landscaping plan.
Written Communication:
Report dated September 21, 1993, from Douglas Dumhart, Management Assistant, summarizing the
terms of the lease, proposed improvements, market rates, parking assignment and environmental issues.
The Report recommended that the 17 tenant -only parking spaces located behind the EI Peon complex
be relocated to the 19 spaces behind the Texaco station so that public parking would be more visible
and accessible to visitors. The Report noted that a mid -year budget adjustment in the amount of $3,000
would be required to cover the City's costs for landscaping.
Exhibits were on display, and Douglas Dumhart, Management Assistant, made an oral presentation.
CRA Minutes 1- 9/21/93
Council's Questions to Staff:
Director Campbell inquired how many Amtrak commuters used the Love and Mitchell lots.
Mr. Dumhart advised that staff did not survey the users of the lots and that the lots have not been used
to their full extent. He noted that since the lots are for all -day parking, commuters have been
encouraged to park there. Director Vasquez inquired whether $3,000 was sufficient for the proposed
landscaping of the parking lots. Mr. Dumhart explained that landscaping would be minimal because of
the temporary use. Mr. Sievers noted that the intent of the landscaping was to provide some visual
interest along the frontage road of both lots, including drip irrigation.
Public Hearing:
Notice having been given as required by law, Mayor Jones opened the Public Hearing, and the following
persons responded:
(1) Kenneth Friess, 31506 Paseo Christina, spoke on behalf of the applicants. He noted that the
proposed plans were not intended as a full-time parking arrangement. He advised that as part
of the plans, the applicant intended to improve the two restrooms at the gas station to meet
federal Americans with Disability Act standards, and that the restrooms would be available for
public use.
There being no further input, the hearing was declared closed with the right to reopen at any time.
Council Discussion:
Chairman Nash inquired whether staff could provide parking assignments for the lots. Mr. Dumhart
explained that the proposed Second Amendment did not assign parking. Director Campbell expressed
concern that trees were not included as part of the landscaping plan. She noted other "temporary -use"
areas in the City that have become long-term uses and now appear barren because trees were never
planted. Director Jones concurred.
Approval of Second Amendment to Lease Agreement:
It was moved by Chairman Nash, seconded by Director Hausdorfer, and unanimously carried that the
Second Amendment to the Lease Agreement with the Community Redevelopment Agency and Texaco
Refining and Marketing, Inc. be approved for the use of public parking at the Mission Texaco site and
temporary parking improvements at the Love and Mitchell lots, subject to the condition that trees be
added to the landscape plan. City expenditures not to exceed $3,000 were authorized. Staff was directed
to assure that trees are included in the landscaping plan and to advise the Board regarding the type of
parking recommended for the new lots.
BOARD ACTION
RECEIVE AND FILE CITY TREASURER'S REPORT OF INVESTMENTS AS OF
AUGUST 31. 1993 (350.30)
The City Treasurer's Report of Investments as of August 31, 1993, in the total amount of $1,068,747.20
was received and filed.
The Board recessed to the Council meeting at 7:41 p.m. and reconvened in Closed Session at 8:40 p.m, for
discussion of litigation per Government Code Section 54956.9(a) (Swerdlin v. CRA), the Agency Secretary being
excused therefrom, and reconvened at 9:45 p.m.
CRA Minutes -2- 9/21/93
0
AGENDA ITEM September 21, 1993
Revised and Resubmitted
TO: George Scarborough, Executive Director
FROM: Douglas D. Dumhart, Management Assistant II
SUBJECT: Joint Public Hearing - Second Amendment to Lease Agreement for Mission Texaco
(Texaco Refining & Marketing, Inc.)
By motion, approve and execute the Second Amendment to the Lease Agreement with
Texaco Refining and Marketing, Inc. for the Mission Texaco Site. Approve the
expenditure of City funds not to exceed $3,000 for landscaping.
SUMMARY:
Staff has identified the need to find temporary parking for spaces that will be displaced during the
construction of the Multi -Modal Parking Deck. The Mission Texaco site is the logical choice for
temporary parking since the station will need to be razed for the proposed Ortega Highway
realignment in the future. The station tenant has proposed alternative parking improvements to
accommodate temporary parking while retaining the Texaco operations. These solutions are
acceptable to City staff. Staff is recommending a Second Amendment to the Lease Agreement to
formalize such arrangements.
BACKGROUND:
The Community Redevelopment Agency (Agency) acquired real property located at 26874 Ortega
Highway from the Diocese of Orange on December 29, 1987, for the purpose of developing the
Historic Town Center and realignment of Ortega Highway. The Agency paid $1,078,700 to the
Catholic Church for the real property. It also paid another $101,350 in relocation costs plus a
guaranteed $300,000 loan to buy out the existing lease and all rights or claims attributable to the
acquisition of the property.
The Agency then determined that it did not need to utilize the Texaco site until 1989 and entered
into an extension for the existing lease for one full year. This lease was then allowed to roll over
to a month-to-month lease until such time as the Agency needed to utilize the property. Under the
current Lease Agreement, Texaco currently pays the Agency .01 per gallon of gas sold or a minimum
of $400 per month, whichever is greater. Over the last two years, the .01 per gallon has averaged
$675 per month rent payment at 810,000 gallons per annum. Additionally, the City receives
approximately $25,000 per year in sales tax from the Texaco operations. Total income realized
amounts to approximately $33,100 annually.
Staff has reviewed several sites in the downtown for providing temporary parking during the
construction for the Multi -Modal Parking Deck. The Texaco property was identified as being able
to support 70+ spaces should the station be razed to provide temporary parking. It is assumed that
the station will to be demolished for the realignment of Ortega Highway. The preliminary date for C 40 ja
FOR CITY COUNCIL AGEND/;I%!!� I
Agenda Item - 2 - September 21, 1993
Revised and Resubmitted
construction of the Multi -Modal Parking Deck is the first quarter 1995. In order to have temporary
parking facilities ready at the Texaco site before the construction of the Parking Deck, station
operations would have to cease by October 1994. Staff discussed this possibility with the station
lessee, and the tenant has proposed an alternate plan to provide temporary parking while retaining
station operations. Texaco is proposing to provide public parking at the rear of the station and
install temporary improvements to the two dirt lots on El Camino Real known as the Love and
Mitchell lots.
The proposed plan is to provide 19 public parking spaces behind the Texaco station and to pave with
asphalt and stripe the two dirt lots on EI Camino Real. A two-week survey of these lots revealed
that the highest average daily use of these lots is around 30 vehicles. Because the lots do not have
delineated stalls, the unmanaged lots are under-utilized. By providing paving, striping, and signage,
61 spaces can be identified. The result is twice the number of useable all -day parking spaces in this
downtown location. The total estimated cost of these improvements is $24,000 resulting in 50 new
spaces.
The parking lot improvements are designed to be minimal and temporary in nature and will not
negatively impact historic resources or sensitive areas. Installation of landscaping to City standards
would require an electrical meter and pedestal ($2,500), a water meter ($5,000), a backflow
preventer ($1,000), a time clock with enclosure ($1,000), excavation of Yorba Street ($1,500), 350
linear feet of pipe and 5 valves ($1,500), and 48 5 -gallon plants and 6 15 -gallon trees ($1,800) for
a total of $14,300. However, the Director of Public Lands and Facilities has stated that there is a
possibility that something rudimentary and temporary landscaping could be installed for under
$3,000. All landscaping costs would be borne by the City as Texaco has made it clear that
landscaping is not part of their agreement.
Although the 50 new spaces are not the 70+ spaces staff is seeking for relief during the construction
of the Parking Deck, retaining the station's operations does have monetary benefits to the City.
Staff believes the proposed solutions represent a good compromise and are in each party's best
interest. Staff prepared a Second Amendment to the Lease Agreement to formalize the
arrangements. This Amendment is attached for Board of Directors' consideration.
MARKET RATES:
In almost every circumstance, an oil company leases the site from a land owner and subleases the
site and service station improvements to a retail operator. Certain conditions of a lease can cause
a substantial variance in comparison to other properties. These variances are caused most frequently
by use restrictions, onerous rent provisions, and/or a relatively short remaining lease term. All of
these conditions exist on the Mission Texaco property.
The scope of my investigation was limited to contacting the retail operators of the existing seven
stations in San Juan Capistrano. Many of the operators do not possess accurate details of the terms
of the master lease between the oil companies and property owners. The results of these discussions
are that the ground leases yield between $1,500 to $3,000.
The proposal before the Agency is to exchange approximately $24,000 worth of temporary parking
improvements for a 2 -year extension of the lease. Since the Second Amendment calls for the
improvement to be made on the front end of the term, the present value (PV) of these
improvements, assuming a 5% interest rate, is $1,740 per month.
0 0
Agenda Item -3 - September 21, 1993
Revised and Resubmitted
The existing rent average plus the PV of the improvements yields a monthly compensation to the
Agency of $2,415. This figure is directly in line with other comparable ground leases for service
stations in this vicinity. It is important to point out, however, the real market rate for the Mission
Texaco lease is whatever is the most compensation that Texaco is willing to pay to stay open. The
improvements (station, canopy and underground tanks) belong to Texaco who, in turn, sublease
these improvements. If the Agency did not continue to lease to Texaco, they could remove their
improvements and the Agency would only have a dirt lot with which to lease.
PARKING ASSIGNMENT:
Staff believes that the general public or visiting tourist would not necessarily expect to find public
parking behind a gasoline service station. To that end, staff felt that the spaces behind the Texaco
station should be reserved for downtown merchant and employee parking. By relocating the 17
tenant -only parking from the lot behind the El Peon Complex to the 19 spaces behind the Texaco
station, the City could establish more readily identifiable public parking lots to the visitor. This idea
provides customer parking closer to the businesses and would not require the removal of the existing
loading and unloading zones in the El Peon lot. The Second Amendment to the Lease Agreement
does not assign parking spaces. At this time, staff is still exploring the best use of the existing
parking inventory as well as the proposed temporary parking spaces. Staff has requested input from
the adjacent merchants regarding the possibility of reassigning free all -day employee parking spaces.
ENVIRONMENTAL:
The City's Planning Department completed a preliminary review of this project in accordance with
the Cityof San Juan Capistrano's adopted guidelines for implementing the California Environmental
Quality Act (CEQA). Based on that review, the Planning Director determined that the project is
a Categorically Exempt, Class II, Existing Facilities (Sec. 15301-15329) and issued a Categorical
Exemption for the Second Amendment on July 20, 1993.
PUBLIC NOTIFICATION:
The required legal notice of the public hearing was published on August 5, 1993, and August 12,
1993 in the Capistrano Valley News. The lessee, Texaco Refining and Marketing, Inc., was sent a
copy of the this Agenda Item.
Ted Harriss, Texaco Refining and Marketing, Inc.
Hans Chua, Mission Texaco
Ken Friess, Ken Friess and Associates
SIC Antiques
Moonrose
Cafe Capistrano
M&M Trading
Trails West Galleries
Cat's Meow
Mission Portrait
El Peon
Jack Baskin (Antique Barn)
David Victorson (Eslinger Building)
0 0
Agenda Item -4 - September 21, 1993
Revised and Resubmitted
COMMUNITY REDEVELOPMENT AGENCY:
The project is located within the Central Redevelopment Project Area. The proposed Second
Amendment does not hinder the goals and objectives of the Redevelopment Plan.
BOARDS/COMMISSIONS:
Not applicable.
FINANCIAL CONSIDERATIONS:
The Second Amendment extends the Lease for a minimum of two years at which time it would be
permitted to roll over to a month-to-month Lease until the Agency needs the property for the
Historic Town Center or Ortega Highway Realignment. The $3,000 for landscaping has not been
budgeted. If the expenditure is authorized, a mid -year budget adjustment will be required.
ALTERNATIVE ACTIONS:
1. Approve the Second Amendment to the Lease Agreement with the Community
Redevelopment Agency and Texaco Refining and Marketing, Inc. for the Mission Texaco
Site. Approve the expenditure of City funds not to exceed $3,000 for landscaping.
2. Approve the Second Amendment to the Lease Agreement with the Community
Redevelopment Agency and Texaco Refining and Marketing, Inc. for the Mission Texaco
Site, and do not authorize landscaping.
3. Do not approve the Second Amendment with Texaco; direct staff to find temporary parking
by other means.
RECOMMENDATION:
By motion, approve and execute the Second Amendment to the Lease Agreement with
Texaco Refining and Marketing, Inc. for the Mission Texaco Site. Approve the
expenditure of City funds not to exceed $3,000 for landscaping.
Respectfully submitted,
Douglas I3. Dumhart
Management Assistant II
DDD:rmb
attach
notic6*f continuation of 0
PUBLIC HEARING
CITY OF SAN JUAN CAPISTRANO
SUBJECT: Joint Public Hearing - Second Amendment to Lease Agreement
for Property Located at 26874 Ortega Highway (Mission Texaco
Station)
NOTICE IS HEREBY GIVEN, that the Joint Public Hearing with respect to
the Second Amendment to the Lease Agreement with Texaco Refining and Marketing for
the Mission Texaco Station at 26874 Ortega Highway, held on September 7, 1993, at 7:00
p.m., in the City Council Chambers, was continued by official action of the City Council and
the Community Redevelopment Agency Board of Directors to Tuesday, September 21, 1993,
at 7:00 p.m., in the City Council Chambers.
DATED: September 8, 1993
/... // A"
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
T, CHERYL JOHNSON, declare that I am the duly appointed and qualified
City Clerk of the City of San Juan Capistrano and Secretary of the San Juan Capistrano
Community Redevelopment Agency; that on September 8, 1993, I caused the above Notice
to be posted in three (3) public places in the City of San Juan Capistrano, to wit: City Hall,
Old Fire Station Recreation Complex, and Orange County Public Library.
I declare under penalty of perjury that the foregoing is true and correct.
0
SEPTEMBER 7, 1493
0
REGULAR MEETING OF THE SAN JUAN CAPISCRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment Agency was
called to order by Chairman Nash at 7:50 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: Carolyn Nash, Chairman
Jeff Vasquez, Vice Chairman
Collene Campbell, Director
Gary L. Hausdorfer, Director
Gil Jones, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director; Richard K
Denhalter, Agency Counsel/City Attorney; Cynthia L. Pendleton, Finance Officer; Dawn Schanderl, Deputy
Agency Secretary; William Huber, Director of Engineering and Building Services; Al King, Jr., Director of
Community Services; Nancy Bernardi, Recording Secretary.
The Minutes of the Regular Meeting of August 3, 1993, were approved as submitted as part of the City Council
Consent Calendar.
PUBUC HEAR][NGS
JOINT1. • • • AMENDMENT •
LEASE AGREEMENT FOR PROPERTY LOCATED AT 26874 ORTEGA HIGIMAY.
Pr
Consideration of a Second Amendment to the Lease Agreement with Texaco for the use of alternative
parking at the Mission Texaco site to accommodate approximately 50 temporary parking spaces while
still maintaining station operations during the construction of the Multi -Modal Parking Deck. The
Second Amendment would extend the existing lease for a minimum of two years and would then become
a month-to-month lease until the Agency needed the property for the Historic Town Center or the
Ortega highway realignment projects. The hearing was continued from the meeting of August 17, 1993,
so that final revisions could be made to the Second Amendment to the existing Lease Agreement,
Written Commtmicadon:
Report dated August 17, 1993, from Douglas Dumhart, Management Assistant, summarizing the terms
of the lease and proposed improvements.
Mayor Jones announced that the heanng on this item would be continued at the request of staff.
Public Hearse¢
Notice having been given as required by law, Mayor Jones opened the Public Hearing, and the following
persons responded
CRA Minutes -1- 9/7/93
•
0
(1) Kenneth Friess, 31506 Paseo Christina, representing both Mission Texaco and Texaco Refiring
and Marketing, Inc., stated that the applicants were not made aware of the continuance and
were in attendance.
Mr. Scarborough explained that the continuance was requested by staff to respond to issues regarding
market rent and modifications to the landscaping plan. Directors Jones and Campbell expressed
concern that the applicants were not noted earlier of the need to continue the item. Mr. Scarborough
noted that the Texaco station use would continue until this item was completed and the use was
removed.
Mr. Denhalter advised the Agency that it would be unwise to take action on this item at this meeting,
despite the presence of the applicants' representatives, since the Mayor announced at the beginning of
the meeting that this item would be continued. Mr. Friers indicated that the applicants would agree to
the continuance and would be present at the next public hearing on this item.
(2) David Swerdlin of Mission Photography, 31762 Camino Capistrano, expressed concern that the
relocation of the on -street parking spaces in front of the El Peon complex to the Texaco site
had not been discussed with the tenants prior to the meeting. He emphasized the need of the
tenants to use those spaces for deliveries, etc. He suggested that staff consider an alternative
plan to retain the 17 parking spaces for the El Peon tenants. Mr. Scarborough indicated that
a separate report on this issue would be provided for the next meeting.
Continuation of Public Hearin,;
It was moved by Director Hausdorfer, seconded by Director Nash, and unanimously carried that the
public hearing be continued to the meeting of September 21, 1993.
:TA"• s ACnONS
1. RECEIVE AND FILE WARRANT'S OF &
The List of Demands for August 1993, in the total amount of $405,904.22 was received and filed.
LL s ►U 7 _ :. .n • : �1c .t.t
The City Treasurer's Report of Cash Fund Balances for the month of July 1993 in the total amount of
S-34,460.40 was received and filed.
Written Cmmamicatioa
Report dated September 7, L993, from Douglas Dumhart, Management Assistant II, recommending that
the Agency enter into a License Agreement with Kuno Crawler and Backhoe Service to temporarily
stockpile clean fill dirt at the Lower Rosan Ranch site in exchange for management of stockpiling
operations The stockpiling is to help reduce costs for the City's future development of a permanent
improved public access to the site, which will require a significant amount of fill.
Douglas Dumhart, Management Assistant, made an oral presentation. He noted that the dirt will be
belly damped in place at a height of 8 feet.
Director Vasquez inquired about dust control at the site. Mr. Dumhart explained that the stockpile has
a 200 -foot buffer zone from the adjacent mobile home park and that the contractor would be on site
CRA Minutes -2- 9/7/93
AGENDA ITEM August 17, 1993
Resubmitted September 7, 1993
TO: George Scarborough, Executive Director
FROM: Douglas D. Dumhart, Management Assistant II
SUBJECT: Joint Public Hearing - Second Amendment to Lease Agreement for Mission Texaco
(Texaco Refining & Marketing, Inc.)
RECOMMENDATION:
By motion, approve and execute the Second Amendment to the Lease Agreement with
Texaco Refining and Marketing, Inc. for the Mission Texaco Site.
SUMMARY'
Staff has identified the need to find temporary parking for spaces that will be temporarily displaced
during the construction of the Multi -Modal Parking Deck. The Mission Texaco site is the logical
choice for temporary parking since the station will need to be razed for the proposed Ortega
Highway realignment in the future. The station tenant has proposed alternative parking
improvements to accommodate temporary parking while retaining the Texaco operations. These
solutions are acceptable to City staff. Staff is recommending a Second Amendment to the Lease
Agreement to formalize such arrangements.
BACKGROUND:
The Community Redevelopment Agency (Agency) acquired real property located at 26874 Ortega
Highway from the Diocese of Orange on December 29, 1987, for the purpose of developing the
Historic Town Center and realignment of Ortega Highway. The Agency paid $1,078,700 to the
Catholic Church for the real property. It also paid another $101,350 in relocation costs plus a
guaranteed $300,000 loan to buy out the existing lease and all rights or claims attributable to the
acquisition of the property.
The Agency then determined that it did not need to utilize the Texaco site until 1989 and entered
into an extension for the existing lease for one full year. This lease was then allowed to roll over
to a month-to-month lease until such time as the Agency needed to utilize the property. Under the
current Lease Agreement, the Community Redevelopment Agency receives $400 per month for rent
and 0.1 cent per gallon of gas sold. Additionally, the City receives approximately $25,000 per year
in sales tax from the Texaco operations. Total income realized amounts to $29,800 annually.
Staff has reviewed several sites in the downtown for providing temporary parking during the
construction for the Multi -Modal Parking Deck. The Texaco property was identified as being able
to support 70+ spaces should the station be razed to provide temporary parking. It is assumed that
the station will to be demolished for the realignment of Ortega Highway. The preliminary date for
construction of the Multi -Modal Parking Deck is the first quarter 1995. In order to have temporary
parking facilities ready at the Texaco site before the construction of the Parking Deck, station
operations would have to cease by October 1994. Staff discussed this possibility with the station
lessee, and the tenant has proposed an alternate plan to provide temporary parking while retaining
FOR CITY COUNCIL AGEND J&W � IQA
�J �
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Agenda Item - 2 - August 17, 1993
station operations. Texaco is proposing to provide public parking at the rear of the station and
install temporary improvements to the two dirt lots on El Camino Real known as the Love and
Mitchell lots.
The parking at the Texaco station will be assigned for downtown tenant/employee parking only. The
17 existing tenant only spaces in the El Peon lot will be reassigned to 19 new spaces at the Texaco
site. The result is an increase in the number of customer parking stalls in the EI Peon public parking
lot. Texaco is also proposing to pave with asphalt and stripe the two dirt lots on El Camino Real.
A two-week survey of these lots revealed that the highest average daily use of these lots is around
30 vehicles. Because the lots do not have delineated stalls, the unmanaged lots are under-utilized.
By providing paving, striping, and signage, 61 spaces can be identified. The result is twice the
number of useable all -day parking spaces in this downtown location. The total estimated cost of
these improvements is $21,830 resulting in 50 new spaces.
The parking lot improvements are designed to be minimal and temporary in nature and will not
negatively impact historic resources or sensitive areas. Landscaping has not been included as part
of the project because of costs, the limited time the improvements are expected to be in place, and
so the parking lots do not have a sense of permanence. Reasoning behind not providing a sense of
permanence is to not hinder the creative process for the Historic Town Center by establishing use
that looks permanent and pre -determined. Further, to install landscaping would require an electrical
meter and pedestal ($2,500), a water meter ($5,000), a backflow preventer ($1,000), a time clock with
enclosure ($1,000), excavation of Yorba Street ($1,500),350 linear feet of pipe and 5 valves ($1,500),
and 48 5 -gallon plants and 615 -gallon trees ($1,800) for a total of $14,300. Thus, landscaping costs
would be more than half the costs of the temporary improvements.
Although the 50 new spaces are not the 70+ spaces staff is seeking for relief during the construction
of the Parking Deck, retaining the station's operations does have monetary benefits to the City.
Staff believes the proposed solutions represent a good compromise and are in each party's best
interest. Staff prepared a Second Amendment to the Lease Agreement to formalize the
arrangements. This Amendment is attached for City Council's consideration.
ENVIRONMENTAL:
The City's Planning Department completed a preliminary review of this project in accordance with
the City of San Juan Capistrano's adopted guidelines for implementing the California Environmental
Quality Act (CEQA). Based on that review, the Planning Director determined that the project is
a Categorically Exempt, Class II, Existing Facilities (Sec. 15301-15329) and issued a Categorical
Exemption for the Second Amendment on July 20, 1993.
PUBLIC NOTIFICATION:
The required legal notice of the public hearing was published on August 5, 1993, and August 12,
1993 in the Capistrano Valley News. The lessee, Texaco Refining and Marketing, Inc., was sent a
copy of the this Agenda Item.
Ted Harriss, Texaco Refining and Marketing, Inc.
Hans Chua, Mission Texaco
Ken Friess, Ken Friess and Associates
0 0
Agenda Item -3 -
August 17, 1993
COMMUNITY REDEVELOPMENT AGENCY:
The project is located within the Central Redevelopment Project Area. The proposed Second
Amendment does not hinder the goals and objectives of the Redevelopment Plan.
BOARDS/COMMISSIONS:
Not applicable.
FINANCIAL CONSIDERATIONS:
The Second Amendment extends the Lease for a minimum of two years at which time it would be
permitted to roll over to a month-to-month Lease until the Agency needs the property for the
Historic Town Center or Ortega Highway Realignment. No City or Agency funds are available or
have been requested for this project. All costs associated with the required improvements are the
responsibility of the lessee.
ALTERNATIVE ACTIONS:
1. Approve the Second Amendment to the Lease Agreement with the Community
Redevelopment Agency and Texaco Refining and Marketing, Inc. for the Mission Texaco
Site.
2. Approve the Second Amendment to the Lease Agreement with the Community
Redevelopment Agency and Texaco Refining and Marketing, Inc. for the Mission Texaco
Site and authorize expenditure of $14,300 for landscaping.
3. Do not approve the Second Amendment with Texaco; direct staff to find temporary parking
by other means.
RECOMMENDATION:
By motion, approve and execute the Second Amendment to the Lease Agreement with
Texaco Refining and Marketing, Inc. for the Mission Texaco Site.
Respectfully submitted,
��. "/� 0
Douglas D. Dumhart
Management Assistant II
DDD:rmb
attach
noticr*f continuation of 0
PUBLIC HEARING
Cl TY OF SAN JUAN CAPIS TRANO
SUBJECT: Joint Public Hearing - Second Amendment to Lease Agreement
for Property Located at 26874 Ortega Highway (Mission Texaco
Station)
NOTICE IS HEREBY GIVEN, that the Joint Public Hearing with respect to
the Second Amendment to the Lease Agreement with Texaco Refining and Marketing for
the Mission Texaco Station at 26874 Ortega Highway, held on August 17, 1993, at 7:00 p.m.,
in the City Council Chambers, was continued by official action of the City Council and the
Community Redevelopment Agency Board of Directors to Tuesday, September 7, 1993, at
7:00 p.m., in the City Council Chambers.
DATED: August 18, 1993
City Clerk/Agefiby S6cretary
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS AFFIDAVIT OF POSTING
CTTY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, declare that I am the duly appointed and qualified
City Clerk of the City of San Juan Capistrano and Secretary of the San Juan Capistrano
Community Redevelopment Agency; that on August 18, 1993, I caused the above Notice to
be posted in three (3) public places in the City of San Juan Capistrano, to wii: City Hall,
Old Fire Station Recreation Complex, and Orange County Public Library.
I declare under penalty of perjury that the foregoing is true and correct.
JohnsonKity'Clerk/Agency
9
AUGUST 17, 1993
•
REGULAR MEETING OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San Juan Capistrano Redevelopment Agency was
called to order by Vice Chairman Vasquez at 7:52 p.m. in the City Council Chamber.
ROLL CALL PRESENT: Jeff Vasquez, Vice Chairman
Collene Campbell, Director
Gary L. Hausdorfer, Director
Gil Jones, Director
ABSENT: Carolyn Nash, Chairman
STAFF PRESENT: George Scarborough, Executive Director; Richard K Denhalter, Agency Counsel/City
Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency Secretary; William Huber, Director
of Engineering and Building Services; Dick Bobertz, Planning Manager; Al King, Jr., Director of Community
Services; Nancy Bernardi, Recording Secretary.
The Minutes of the Regular Meeting of July 20, 1993, were approved as submitted as part of the City Council
Consent Calendar.
kkell.—Oloi-LIAll i
---� 1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL - SECOND AMENDMENT TO LEASE
AGREEMENT FOR PROPERTY LOCATED AT 26874 ORTEGA HIGHWAY. TEXACO
Pr000sat: '
Consideration of a Second Amendment to the Lease Agreement with Texaco for the use of alternative
parking at the Mission Texaco site to accommodate approximately 50 temporary parking spaces while
still maintaining station operations during the construction of the Multi -Modal Parking Deck. The
parking lot improvements proposed did not include landscaping because of costs and the temporary
nature of the parking use. The Second Amendment would extend the existing lease for a minimum of
two years and would then become a month-to-month lease until the Agency needed the property for the
Historic Town Center or the Ortega Highway realignment projects.
Written Communications:
(1) Report dated August 17, 1993, from Douglas Dumbart, Management Assistant, summarizing
the terms of the lease and proposed improvements.
(2) Memorandum dated August 17, 1993, from Mr. Dumhart, recommending that the public
hearing be continued to the meeting of September 7,1993, so that final revisions could be made
to the Second Amendment to the existing lease Agreement.
Notice having been given as required by law, Mayor Jones opened the Public Hearing, and there was
no response.
CRA Minutes 1- 8/17/93
0
Continuation of Public Hearin ¢:
It was moved by Director Hausdorfer, seconded by Vice Chairman Vasquez, and unanimously carried
that the public hearing be continued to the meeting of September 7, 1993.
Vice Chairman Vasquez requested that staff provide information regarding the market value of the
Texaco property and what the rents would be in a similar situation if the property were leased out to
a tenant. Mr. Scarborough indicated that a memo would be provided in Council slots prior to the
September 7 meeting.
1. FINANCE OFFICER'S REPORT OF INVESTMENTS AS OF JULY 31 1993 (350 30)
The Finance Officer's Report of Investments as of July 31, 1993, in the total amount of $1,166,747.20
was received and filed.
CLOSED SESSION
None.
ADJOURNMENT
There being no further business before the Board, the meeting was adjourned at 7:53 p.m. to the next regular
meeting date of Tuesday, September 7, 1993, at 7:00 p.m. in the City Council Chamber.
Respectfully submitted,
CHERYL JOHNSON, AGENCY SECRETARY
ATTEST:
JEFF VASQUEZ, VICE CHAIRMAN
CRA Minutes -2- 8/17/93
0 0
MEMORANDUM August 17, 1993
TO: George Scarborough, City Manager
FROM: Douglas D. Dumhart, Management Assistant II
SUBJECT: Joint Public Hearing - Mission Texaco
Recommendation: By motion, Continue the Joint Public Hearing for
Mission Texaco to September 7, 1993.
Summary: Staff had prepared for City Council/Agency consideration
a Second Amendment to the Existing Lease Agreement for Mission
Texaco. The Second Amendment provides for an extension of the
lease for two years in exchange for miscellaneous temporary parking
improvements in the Downtown.
Staff had successfully negotiated the Second Amendment with the
Tenant and Texaco Refining and Marketing, Inc. and prepared the
item for Council/Agency consideration this evening. It was staffs
understanding from Texaco's Personnel, they would have the signed
contracts to the City Clerk's office in time for packet
distribution. Staff was then informed that Texaco Inc., the parent
company to Texaco Refining and Marketing Inc., needed minor
revision to the Second Amendment pursuant to the parent company's
legal counsel direction. The changes were technical legal
wordsmithing rather than changes to the deal points. The parent
company's concerns have been incorporated to the Second Amendment
and will be ready for Council consideration September 7, 1993.
Staff is recommending the City Council continue the Joint Public
Hearing until September 7, 1993, when the signed Second Amendment
can be reviewed.
Respectfully submitted,
x�jz
Douglas D. Dumhart
Management Assistant II
DDD: ms
FOR CITY COUNCIL AGEN
XP�g3�
yD OR B /
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA
COUNTY OF ORANGE
I am a citizen of the United States and a resident of the County
aforesaid. I am over the age of eighteen years, and not a party to or
interested in the above entitled matter. I am the principal clerk of the
Capistrano Valley News, a newspaper that has been adjudged to
be a newspaper of general circulation by the Superior Court of the
County of Orange, State of California. on June 7, 1984, Case No.
A-122949 in and for the City of San Juan Capistrano, County of
Orange, State of California, that the notice, of which the annexed is
a true printed copy, has been published in each regular and entire
issue of said newspaper and not in any supplement thereof on the
following dates, to wit:
July 29, August 5, 1993
I declare under penalty of perjury that the foregoing is true and
correct.
Executed at Mission Viejo, Orange County, California, on
....... August ... 5,...19.9.3 ........................................ _........................
(Signat
Capistrano Valley News
(A Publication of South Orange County News)
23811 Via Fabricante
P. O. Box 3629
Mission Viejo, California 92690
(714) 768-3631
E
Space below for Filing Stamp Only.
Proof of Publication of
NOTICE OF PUBLIC HEARING
.............................................................................................................
NOTICE OF PUBLIC HEARING
CITYOF SANJUAN CAPISTRANO I
JOINT PUBLIC HEARING
CITYOF SANJUANCAPISTRANO
N JUAN CAFISTRANO COMt1tUNITY
TEXACO REF1N7NasAmutavwn: "1
ore
— Re®m[ana Yartetns. in,
0st sm s"d ammfdmen Y°tha Lean Agnmo ent pro-
rmPovemeW of temporary parking IW, in various,
nafthe to exchange far a minimum tmayear exWa-
existing Leafs Agreement.
%f.t tPoli°wFngdceuotenh will we be an Ale in CheotS°eaf
1. A COPY °rthe Wood amendment to the Lace Agreamenl. 1
nmmmY Report which dus iba aM PacftAa:
Tim ran' in be incurred by the Agency under the
b. Tpseatltaledval°eofthearamdamend,neat to the
Lens, Agreemat.
e Theamofthel""aYmatsduring the tsrma ofthe
towns.
cm, 3. A °°fthe Categorical Exemption iwed by the Plan-
ning Dictator,
se desiring to be heard in favor of or in oppothib, to, this
wi116e V,ew ao opportuWty todo so during such bearing or
formation, you may contact Doughu D. Dumhnrt, City Ham
ager'eoRice x141131111.
CHERYL JOHNSON, CITY CLERK
Pablbhed: Capiutrano Valley Nem,
Jwty 29, An" A, I993
03363
0
NOTICE OF TRANSMITTAL - LEGAL PUBLICATIONS
TO: CAPISTRANO VALLEY NEWS
Bea Gougeon, Legal
FOR PUBLICATION ON:
DOCUMENT TO BE PUBLISHED:
PROOF OF PUBLICATION
AUTHORIZED BY:
DATE: July 21, 1993
Date of Public Hearing
Date notice published
Date affidavit received
E
THURSDAY, JULY 29, 1993
THURSDAY, AUGUST 5, 1993
NOTICE OF JOINT PUBLIC HEARING -
CONSIDERATION OF SECOND AMENDMENT TO
LEASE AGREEMENT, TEXACO REFINING AND
MARKETING, INC. (MISSION TEXACO
STATION)
Please send to:
City Clerk's Division
City Hall
32400 Paseo Adelanto
San Juan Capistrano,
California, 92675
(714) 493-1171
- 08/17/93
- 07/29/93
- 08/05/93
- NJ3)93d/-nr
Date notice posted in
designated posting places (3) - 07/29/93
Date notice posted on property - N/A
Date of mailing notice to
interested parties - 07/29/93
Date notice transmitted to
City Manager's Office - 07/21/93
0 0
FOR OFFICE USE ONLY:
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss. AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO ) AND PUBLICATION
I, CHERYL JOHNSON, declare that I am the duly appointed
and qualified City Clerk of the City of San Juan Capistrano; that
on July 29, 1993, I caused the above Notice to be posted in three
(3) public places in the City of San Juan Capistrano, to wit:
City Hall;
Old Fire Station Recreation Complex;
Orange County Public Library
AND, that on July 29, 1993, and August 5, 1993, the above Notice
was published in the Capistrano Valley News newspaper.
I declare under penalty of perjury that the foregoing is
true and correct.
City of San Juan Capistrano
California
noti ° of
PUBLIC HEARING
Cl TY Of SAN JUAN CAPISTRANO
JOINT PUBLIC HEARING
CITY OF SAN JUAN CAPISTRANO
SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY
CONSIDERATION OF SECOND AMENDMENT TO LEASE AGREEMENT - TEXACO
REFINING AND MARRETINGO INC. (MISSION TEXACO STATION)
NOTICE IS HEREBY GIVEN, that on the 17th day of August, 1993, at
7:00 P.M. in the City Council Chamber, 32400 Paseo Adelanto, San
Juan Capistrano, California, the City Council of the City of San
Juan Capistrano (the "City") and the San Juan Capistrano Community
Redevelopment Agency (the "Agency") will hold a joint public
hearing pursuant to the California Community Redevelopment Law
(Health & Safety Code Section 33000 et seq) for the purpose of
considering the approval of a second amendment to the Lease
Agreement with Texaco Refining and Marketing, Inc.
The proposed second amendment to the Lease Agreement provides for
the improvement of temporary parking lots in various downtown
locations in exchange for a minimum two-year extension of the
existing Lease Agreement.
A copy of the following documents will be on file in the office of
the City Clerk:
1. A copy of the second amendment to the Lease Agreement.
2. A Summary Report which describes and specifies:
a. The costs to be incurred by the Agency under the
proposed amendment.
b. The estimated value of the second amendment to the
Lease Agreement.
C. The sum of the lease payments during the term of the
lease.
3. A copy of the Categorical Exemption issued by the
Planning Director.
Those desiring to be heard in favor of, or in opposition to, this
item will be given an opportunity to do so during such hearing or
by writing to the City Council at 32400 Paseo Adelanto, San Juan
Capistrano, California 92675, Attention: City Clerk. For further
information, you may contact Douglas D. Dumhart, City Manager's
office at 493-1171. /Z „
CITY
HISTORIC TOWN CENTER - ACQUISITION OF LEASE
PATRICK) (655—.-4-5F6 —75—.2 o
Written Communications:
Report dated January 19, 1988, from the Deputy Director, advising that the Agency
owns the property commonly known as El Peon, located at 26832 Ortega Highway.
Robert and Carolyn Patrick own the Master Lease to the property, which has a
remaining term of nine years. The report advised that Mr. and Mrs. Patrick wished
to sell the leasehold interest in the property to the Agency. The report forwarded a
Conveyance Agreement setting forth financial terms of the acquisition at a $125,000
cash payment and $2,000 per month for seven years for a total cost of $293,000.
The Agency will receive approximately $93,600 per year in rents from subtenants.
Approval of Agreement:
It was moved by Director Buchheim, seconded by Director Friess and unanimously
carried to approve acquisition of the Master Lease on the E1 Peon property from
Robert and Carolyn Patrick, in the total amount of $293,000. The Chairman and
Secretary were authorized to execute the Conveyance on behalf of the Agency.
HISTORIC TOWN CENTER - INTERIM FINANCING,
BOND ANTICIPATION NOTE 340.30
Written Communications:
Report dated January 19, 1988, from the Finance Officer, advising that the Agency
needed to replace a major revenue source for Fiscal Year 1987-88, since the Cash
Balance had been drawn down with the acquisition of property for the Historic Town
Center and citing several options available. The report advised that the most
economic option was to issue a Debt Instrument to the City. The debt would be
scheduled for repayment with the next Bond or Note Issuance of the Agency, or
when sufficient cash is available from other sources. The rate of interest on the
note would range from 9.0% to 9.5%. The Note will be issued in the amount of
$6,000,000, with draws from the City as cash is required.
Approval of Bond Anticipation Note:
It was moved by Director Bland, seconded by Director Buchheim and unanimously
carried to authorize the Executive Director and Secretary to sign the Bond
Anticipation Note in the amount of $6,000,000, and to direct the Finance Officer to
request draws as cash needs are required.
5. HISTORIC TOWN CENTER - EXTENSION OF LEASE
TEXACO, 26874 ORTEGA HIGHWAY 670.20 <-m—
Written Communications:
Report dated January 19, 1988, from the Deputy Director, advising that the existing
lease for the Texaco Service Station will expire April 30, 1988. The property is not
currently needed for the Historic Town Center development and realignment of
Ortega Highway and the report recommended extending the lease for a one-year
period. The lease requires a $400 monthly payment plus 1¢ per gallon delivered to
the site over 480,000 gallons per annum.
-2-
1/19/88
0 0
Approval of Lease Extension:
It was moved by Director Bland, seconded by Director Friess and unanimously
carried to authorize the Executive Director to execute documents entering into an
extension of the lease between Texaco USA and the Agency for a period of one year,
ending April 30, 1989. The lease will be extended month-to-month thereafter.
6. COOPERATION AGREEMENT (CAPISTRANO UNIFIED SCHOOL DISTRI(
Written Communications:
Report dated January 19, 1988, from the Deputy Director, advising that on
January 6, 1986, the Agency entered into a Cooperation Agreement for acquisition
of the Capistrano Elementary School site at 31422 Camino Capistrano. In exchange
the Agency will construct a gymnasium and 50 -meter competition swimming pool at
Capistrano Valley High School. The report advised that although escrow was
extended to June 1, 1988, it could be completed within 30 days and it was
recommended that necessary actions be taken to close escrow.
Close of Escrow - Capistrano Elementary School Site:
It was moved by Director Buchheim, seconded by Director Friess and unanimously
carried to authorize the Executive Director, or his designee, to execute all
documents necessary to close escrow on the Capistrano Unified School District
property known as the Capistrano Elementary School site.
CLOSED SESSION
The Board recessed at 7:17 p.m., to reconvene the City Council meeting. The Board
convened in a Closed Session at 8:02 p.m., for discussion of personnel matters and
acquisition of property in the Historic Town Center owned by the Agency, with the
Agency Secretary excused therefrom. Director Schwartze arrived at 8:40 p.m. The
meeting reconvened at 9:03 p.m. with Director Schwartze and Chairman Hausdorfer
absent.
BOARD ACTIONS
PROPERTY ACQUISITION (OLIVER/McMILLAN) (670.20)
It was moved by Director Bland, seconded by Director Buchheim and unanimously
carried with Chairman Hausdorfer and Director Schwartze absent, to direct the
Executive Director to continue discussion regarding property acquisition.
-3-
1(19/88
AGENDA ITEM
TO.-
FROM:
O:FROM:
SUBJECT:
SITUATION
0 0
January 19, 1988
Stephen B. Julian, Executive Director
Thomas G. Merrell, Deputy Director
Community Redevelopment Agency
Historic Town Center - Extension of Lease (Texaco)
A. Summary and Recommendation - On December 29, 1987, the Agency acquired
property from the Diocese of Orange on which the Texaco Service Station exists.
Texaco's existing lease expires April 30, 1988. The property is not currently needed
for the Historic Town Center development and realignment of Ortega Highway;
therefore, it is recommended that the Agency authorize the Executive Director to
execute documents entering into a one year extension of the lease under existing
terms with month to month extensions until the site is needed by the Agency.
B. Background - The Texaco Service Station site on the southeast corner of
Ortega Highway and El Camino Real will ultimately be needed for the realignment
of Ortega Highway and development of the Historic Town Center project. The
Agency acquired the property from the Diocese of Orange on December 29, 1987,
subject to the existing lease with Texaco. Texaco's lease expires April 30, 1988;
however, the Agency does not anticipate needing to utilize the site until at least
April of 1989. Rather than demolish the existing Texaco station in May of 1988, it is
recommended that the existing lease be extended under its current terms for a
period of one year with possible month to month extensions after that until the
Agency has need of the site. The lease extension will also allow for Mr. Han Chua,
the current operator, to continue managing the station for the additional time.
Staff has met with the Texaco representative to discuss the lease extension and they
are very agreeable to do so as this will allow them additional time to amortize the
cost of new tanks that were installed on the property three to four years ago.
Agency Counsel is in the process of preparing the lease extension. It is
recommended that the Agency authorize the Executive Director to execute the
lease and any other necessary documents to provide for an extension to
April 30, 1989.
ENVIRONMENTAL
Not applicable.
PUBLIC NOTIFICATION
Texaco USA and Mr. Han Chua have been notified of the proposed lease extension.
COMMISSION/BOARD REVIEW, RECOMMENDATION
None.
Agenda Item
FINANCIAL CONSIDERATIONS
•
-2- January 19, 1988
The existing terms of the lease provide for a $400 monthly payment plus one cent (1fi)
per gallon delivered to the site over 480,000 gallons per annum. These terms are
proposed to continue during the period the lease is extended.
ALTERNATE ACTIONS
1. Authorize the Executive Director to execute documents entering into an extension
of the lease between Texaco USA and the Agency until April 30, 1988, with month to
month extensions thereafter.
2. Do not extend the lease.
3. Request additional information from staff.
RECOMMENDATION
By motion, authorize the Executive Director to execute documents entering into an
extension of the lease between Texaco USA and the Agency until April 30, 1988, with
month to month extensions thereafter.
Respectfully submitted,
Thomas G. Merrell, Deputy Director
Community Redevelopment Agency
TGM:NE:dh
GPL/NEAI119881
San Juan Capistrano
Community
Redevelopment
Agency
September 24, 1993
Mr. Paul A. Archer
Texaco, Inc.
P. O. Box 7812
Universal City, California 91608
Re: Second Amendment to Lease Agreement - 26874 Ortega Highway. San Juan
Capistrano
Dear Mr. Archer:
At their meeting of September 21, 1993, the San Juan Capistrano Community
Redevelopment Agency Board of Directors and the San Juan Capistrano City Council held
a joint public hearing to consider the Second Amendment to the Lease Agreement for the
Texaco Station located at 26874 Ortega Highway. Following that hearing, both boards took
unanimous action to approve the Second Amendment to the Lease.
Two fully -executed copies of the Second Amendment to Lease are enclosed in the envelope
provided, as you requested.
Thank you for your cooperation in this matter.
Very truly yours,
e�
Cheryl Joh on
Agency Secretary
Enclosure
cc: Han Chua (with copy of Second Amendment)
Ken Friess (with copy of Second Amendment)
Ted Harriss (with copy of Second Amendment)
Douglas Dumhart (with copy of Second Amendment)
Mary Laub (with copy of Second Amendment)
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714-493-t 171
►I4
-- Texaco Refining
aiol Marketing Inc
August 20, 1993
SECOND AMENDMENT TO LEASE
26874 Ortega & E1 Camino
San Juan Capistrano, Ca
10 ! auve,sal C,uy Plaza
Ody (:A )1608
Ms. Carolyn Nash, Chairman
San Juan Capistrano Community
Redevelopment Agency
32400 Paseo Adelanto
San Juan Capistrano, Ca 92675
Dear Ms. Nash:
i
Enclosed are three original Second Amendment To Lease which
have been executed on behalf of TRMI. Please execute these
documents for the "Agency" and return two of them to our
office in the enclosed envelope.
Should you have any questions, or comments, please contact
our Real Estate Agent, Mr. Ted Harriss, at (714) 434 8606.
Very truly yours,
Paul A. Archer
ENC:
082093b
dcaUrng On a i130100ri Or Civaahty
AUG 2 31993
tet. t c
San Juan Capistrano
Community
Redevelopment
Agency
January 21, 1988
Dave Mattson
Texaco
10 Universal City Plaza
Universal City, California 91608
Re: Historic Town Center - Extension of Lease (Texaco)
Dear Mr. Mattson:
The Board of Directors of the San Juan Capistrano Community Redevelopment Agency at
its regular meeting held January 21, 1988, approved extension of the lease with Texaco
U.S.A. for the Texaco Service Station site on the southeast corner of Ortega Highway
and EI Camino Real for one year to April, 1989.
Brian Fisk of the Department of Community Planning and Development will be in touch
with you regarding execution of the lease.
If we can be of further assistance, please call.
Very truly yours,
Mary Ann anover, CMC
Agency Secretary
MAH/mac
cc: Deputy Director
Finance Officer
Han Chua, Mission Texaco
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714.499-1171
,, "I 1111, ,
San Juan Capistrano
Community
Redevelopment
Agency
August 19, 1993
Mr. Ted B. Harriss
Texaco Refining & Marketing, Inc.
3631 Harbor Boulevard, Suite 225
Santa Ana, California 92704
Re: Second Amendment to Lease Agreement for Mission Texaco
Dear Mr. Harriss:
At their meeting of August 17, 1993, the San Juan Capistrano Community Redevelopment
Agency Board of Directors and the City Council both took action to open the joint public
hearing for consideration of the second amendment to the Lease Agreement for Mission
Texaco. The joint public hearing was then continued to the meeting of September 7, 1993.
Copies of the Agenda and any additional staff reports will be forwarded to you prior to the
September 7th meeting. If you have any questions, please do not hesitate to call.
Very truly yours,
Cheryl Johnson
Agency Secretary
cc: Han Chua
Ken Friess
Douglas Dumhart
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714 - 493-1171
San Juan Capistrano
Community
Redevelopment
Agency
September 9, 1993
Mr. Ted B. Harris
Texaco Refining & Marketing, Inc.
3631 Harbor Boulevard, Suite 225
Santa Ana, California 92704
Re: Second Amendment to Lease Agreement for Mission Texaco
Dear Mr. Harris:
At their meeting of September 7, 1993, the San Juan Capistrano Community Redevelopment
Agency Board of Directors and the City Council both took action to open the joint public
hearing for consideration of the second amendment to the Lease Agreement for Mission
Texaco. The joint public hearing was then continued to the meeting of September 21, 1993.
Copies of the Agenda and any additional staff reports will be forwarded to you prior to the
September 21st meeting. If you have any questions, please do not hesitate to call.
AVery truly yooju-,rs,
aux)
Cheryl Johnson
Agency Secretary
cc: Han Chua
Ken Friess
Downtown Commercial Complex Tenants
Douglas Dumhart
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714 - 493-1171
Additional notification after City Council/CRA joint public hearing of 9/7/93 regarding
Texaco item:
Dixie Boehm
SJC Antiques
31768 Camino Capistrano
SJC, CA 92675
Sue Tober
Moonrose
31766 Camino Capistrano
SJC, CA 92675
Al Whelchel
Cafe Capistrano
31752 Camino Capistrano
SJC, CA 92675
Chris McLaughlin
M&M Trading
31754 Camino Capistrano
SJC, CA 92675
Trails West Galleries
26822 Ortega Highway
SJC, CA 92675
Cat's Meow
31762 Camino Capistrano
SJC, CA 92675
David Swerdlin
Mission Portrait
31762 Camino Capistrano
SJC, CA 92675
Mike Darnold
El Peon
26832 Ortega Highway
SJC, CA 92675
Jack Baskin
R. Brundate Inc.
34080 Golden Lantern
Dana Point, CA 92629
David Victorson
W.C. Matz, Inc
8001 Irvine Center Drive, Ste 1430
Irvine, CA 92718
0
September 13, 1993
Douglas Dumhart
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, Ca. 92675
Reference: Second Amendment to Texaco Lease Agreement
(400.20)
Dear Mr. Dumhart:
In response to your letter of September 10 regarding tenant parking
in the "E1 Peon" parking lot, I would like to state the following
points:
1. Tenants in the "Cafe Capistrano" and the "Mission
Photography/Cat's Meow" buildings need close -by parking for
security of retail personnel and for the convenience of operating
their retail and/or service businesses.
2. Verbal assurances were given by the then city manager
Steve Julian and Councilperson Ken Friess that the tenants would
have these spaces until the city put through the Ortega Highway
realignment or sold the lot to a private enterprise. (Hence the
"Tenant Parking" signage in the lot; these signs were put up by the
city as a part of the verbal agreement.) This agreement can be
verified by the San Juan Antiques, Moonrose, Mission Photography,
Cat's Meow, M & M Jewelers, and the Cafe Capistrano, as well as
Mike Darnold of the E1 Peon.
3. When the new parking deck is completed, the Capistrano
Plaza businesses, etc. will benefit substantially; the "El Peon"
businesses will not. The inconveniences caused by the coming
construction of the parking deck will not be alleviated by the
addition of 17 parking spaces at the "E1 Peon"; the loss of these
spaces will just inconvenience that many more merchants in the "E1
Peon" buildings.
4. The best compromise is to ask Mike Darnold and his sub-
lessees to use the Texaco lot, with the other tenants retaining
their allotted parking spaces. This would free up an additional
eight or so spaces for public parking while causing only minor
inconveniences to building tenants.
Mr. Dumhart, I do appreciate your stopping by September 8 to
discuss the issues and seek possible solutions. The sensitivity of
staff and especially City Council to tenant needs and issues is
greatly appreciated. It would be greatly appreciated if this issue
could be resolved to the satisfaction of both parties.
SEP 1 4 1993