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HomeMy WebLinkAboutFIESTA MARKETPLACE PARTNERS (3)INSURANICIE NOT QN111111" 'WORK MAY46f,"'01,H), CEED CLERK "OF COUNCIL pA­,,rt: FF31 LICENSE AGREEMENT (The Paseo) 2440-7 REL:adg-3 10/29/86 r� THIS AGREEMENT, made and entered into this - day of 198, by and between the City of Santa Ana, a municipal corporation of the State of California ("City") and Fiesta Marketplace Partners, a limited partnership ("Fiesta"); W-I-T-N-E-S-S-E-T-H Recitals: A. The City has closed that portion of Spurgeon Street between Third and Fourth Streets to vehicular traffic and improved said area as an open -air -market called "The Paseo" for the vending of artifacts and commodities. B. Fiesta is developing property in the vicinity of the Paseo pursuant to that certain Disposition and Development Agreement ("D.D.A.") with the Community Redevelopment Agency of the City of Santa Ana (the "Agency"). C. Fiesta is the appropriate entity 'to undertake the arrangements for open air vendors within the Paseo® WHEREFORE, in consideration of their respective promises, the parties hereto do hereby agree as follows: 0 0 1. Scope of License City hereby grants to Fiesta, and to persons authorized by Fiesta, a revocable license to use that portion of Spurgeon Street between Third and Fourth Streets (hereinafter referred to as the "subject property") for the following purposes: (a) Vending of food, drinks, artifacts and merchandise and similar items customarily offered for sale in open-air markets. (b) Displays, promotional activities and seasonal decorations, including, but not limited to, a "merry-go-round." 2. Term of License The license herein granted shall commence upon the issuance of a Certificate of Completion by the Agency pursuant to the D.D.A. Said .License shall continue until revoked by City's City Council. 3. Right to Charge for Use As a condition to authorizing the use of any part of the subject property for vending purposes, Fiesta may require any vendor to pay a charge or rent for such privilege through a lease or similar agreement. All such revenues received by Fiesta shall be the property of Fiesta. 4. Insurance As a condition to authorizing a vendor to use any part of the subject property, Fiesta shall require such vendor to obtain liability insurance naming the City of Santa Ana and its 2. I officers, agents and employees as insured or additional insured, which provides comprehensive general liability coverage for damages or injuries to persons or property arising out of the vendor's operations on the subject property in the minimum amount of One Million Dollars ($1,000,000.00) combined single limit, or equivalent. Fiesta shall not allow vending on the subject property by any vendor who does not have in effect a current policy of insurance or a certificate thereof showing compliance with this section on file with Fiesta. 5. Indemnification Fiesta shall indemnify and save harmless the City and its officers, agents and employees from and against any and all claims, demands, loss or liability of any kind or nature which the City or any of its officers, agents or employees may sustain or incur, or which may be imposed on any of them, for injury to or death of persons or damage to property as a result of the operations of Fiesta or any person or entity authorized by Fiesta to use any part of the subject property pursuant to this Agreement. 5. Subordination to_Right-of-way Uses The license herein granted is subordinate to the public's use of the public right-of-way for right--of-way purposes. Fiesta shall comply, and shall require all vendors .located in the public right-of-way to comply with any and all directives from City's Executive Director of Public Works pertaining to the maintenance and repair of the public right-of-way or to the passage of the public on the public right-of-way. 3. r 7. Maintenance Fiesta shall assure that vendors authorized by Fiesta to use parts of the subject property to keep their respective areas of use reasonably free and clear of litter through a daily cleanup of such areas. 8. Compliance with Laws and Ordinances Nothing in this Agreement shall be construed to relieve any person using the subject property pursuant to this Agreement from the duty of compliance with requirements of law or City ordinance, including but not limited to permit requirements for pushcarts, public health regulations, and business license tax requirements. 9. Non-discrimination Fiesta covenants that, in authorizing persons to use the subject property, it will not discriminate on the basis of race, color, creed, religion, sex, age, marital status, national origin, ancestry, physical handicap or medical conditions. 10. Revocation This license granted by this Agreement may be revoked by resolution of the City's City Council in the event Fiesta fails to comply with the terms and conditions of this Agreement or the D.D.A. or in the event the City determines it is necessary to reopen the subject property to vehicular traffic; provided, however, in the event City revokes said license in order to re- open the subject property to vehicular traffic, the City shall reimburse Fiesta for the unamortized cost of the improvements installed on the subject property by Fiesta. In the absence of circumstances necessitating a more rapid revocation, the City shall give Fiesta thirty (30) days notice of revocation. 4. 11. Notices Notices and written communications sent by one party to the other shall be personally delivered or sent by U.S. Mail, postage prepaid, to the following addresses: If sent by the Association to the City: Executive Director of Community Development City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 If sent by the City to the Association: Fiesta Marketplace Partners 890 W. Baker Street, Suite 200 Costa Mesa, CA 92626 Attn: Irving M. Chase IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. Ile c - e C. Guy' Clerk of the council APPROVED AS TO FORM: jjawara. �,c,o2 er City At�or)ney) D&vidjlT. P-bam City Manager 0, THE CITY OF SANTA ANA D iel H. Yoh" Mayor FIESTA MARKETPLACE PARTNERS in in '411 -V �_Xli 4 L• DATE — January 20, 1987 TITLE JOINT PUBLIC HEARING REGARDING THE FIESTA MARKETPLACE PROJECT CITY MANAGER AGENCY RECOMMENDATION DATE OF AGENCY ACTION SUA Adopt Resolution No. 87-07: A RESOLUTION OF THE C014MITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT OF AGRED04T WITH FIESTA MARKETPLACE PARTNERS. COUNCIL RECOMMENDATION 1. Adopt Resolution No. 87-10: A RESOLUTION OF THE CITY COUNCIL OF THE CITY SANTA ANA APPROVING AN AMENDMENT TO A "DISPOSITION AND DEVELOPMENT AGREEMEN7 BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND FIESTA MARKETPLACE PA1Z'1kTW.1S. 2. Approve and authorize the Mayor to execute a'Lease Agreement, a License Agreement, and a Property Line Agreement for"the development of Fiesta Marketplace. COMMISSION RECOMMENDATION Recommend that the Redevelopment Agency approve and authorize the Chairman to execute the Amendment to the Disposition and Development Agreement. EXECUTIVE SUMMARY On August 20, 1985, the Agency entered into a Disposition and Development Agreement with Fiesta Marketplace Partners for the development of a festival retail and office development on Fourth Street between French Street and Bush Street. The Agency -acquired sites have been conveyed to the Partnership and construction is scheduled to begin in February, 1987. The four proposed Agreements are necessary to implement the project and reflect changes and refinement in the scope of development that have occured since the original Agreement was executed. fim 76.B. FIESTA MARKETPLACE PROJECT (AGENCY ITEM 2B) The Mayor opened the Joint Public Hearing of the Community Redevelopment Agency and the City Council of the City of Santa Ana concerning a proposed amendment to the Disposition and Development Agreement and approval of additional agreements for the proposed Fiesta Marketplace located between Third Street, Fifth Street, Bush Street and French Street. Patty Nunn, Project Manager, presented the staff report, Community Redevelopment Commission recommendation, and staff comments, and responded to Councilmembers' questions. The Agency Secretary reported no written communications. There were no speakers on the matter. The Mayor closed the public hearing. MOTION: (Part of concurrent action with Community Redevelopment Agency): 1) Adopt resolution. RESOLUTION NO. 87-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO A "DISPOSITION AND DEVELOPMENT AGREEMENT" BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND FIESTA MARKETPLACE PARTNERS. 2) Authorize the City Attorney to prepare and the Mayor and Clerk to execute agreements. PROPERTY LINE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for the building being constructed at 305 East Fourth Street. A-87-008 LICENSE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for use of that portion of Spurgeon Street between Third and Fourth Streets closed to vehicular traffic and improved as an open-air market called "The Paseo." A-87-009 3) Authorize the City Attorney to prepare agreement to include a clause which will grant the present tenants of the Mercado area the right of first refusal, and authorize the Mayor and Clerk to execute said agreement. LEASE AGREEMENT WITH FIESTA MARKETPLACE PARTNERS for the Mercado, located at the northwest corner of Fourth and French Streets. A-87-007 RECESS TO COMMUNITY REDEVELOPMENT AGENCY At 6.03 p.m., the Council recessed to the Community Redevelopment Agency, and reconvened at 6.48 p.m., with all Councilmembers present. CITY COUNCIL MINUTES 33 JANUARY 20, 1987 MEMORANDUM Deputy City Manager/ To; Development Date: ct ng. xecut ve rector/ From: Community Development Agen Subject: FIESTA MARKETPLACE (_A--_8_S.ITE) AGREEMENTS _.- STATEMENT OF THE ISSUE January 20, 1987 On August 20, 1985, the Agency entered into a Disposition and Development Agreement with Fiesta Marketplace Partners for the development of a festival retail and office development on Fourth Street between Bush and French Streets. The Agency has conveyed the designated sites to the Partnership and construc- tion of the project is scheduled to begin in February, 1987. Since approval of the Development Agreement many issues have been raised which require both amendments to the original agreement as well as three new agreements which are described below in further detail. The Amendment to the Disposition and Development Agreement defines changes that have occurred in the scope of the project since the original Agreement was executed. The original Agree- ment provided that the Partnership had the option to purchase those parcels where owners declined to rehab their buildings and participate in the project. The purchase price to be paid by the Partnership was the Agency's actual cost to acquire, with the exception of the property at 316-320 E. Fourth Street (Galvan) which was to be sold at reuse value. Since that time, two property owners chose not to participate and the Agency proceeded to acquire them. They include 316-320 E. Fourth Street and 202-210 E. Fourth Street (-Isaacson Building). We renegotiated the purchase terms of 202--210 E. Fourth Street to reflect a reuse value vs. actual costs to acquire. Both properties are to be purchased by the Partnership for $560,000 as determined by a reuse appraisal prepared by Keyser Marston & Associates. Attached as Exhibit A is a site map depicting the subject properties.. The proposed Amendment further defines the scope of public. improvements to be funded by the Agency and enables the developer to install them and be reimbursed by the Agency. This will be a more expeditious process and will result in a cost savings as the improvements will be bid with the total project. The developer will be required to obtain at least three separate bids and cannot proceed without prior approval of the Agency's Executive Director. oie 76B Deputy City Manager/Development January 20, 1987 Page 2 The second agreement is between the Fiesta Marketplace Partners and the City of Santa Ana for the lease of the Mercado, located at the northwest corner of Fourth and French Streets. Under. this Agreement, the Partnership agrees to lease the Mercado for 35% of the net income. The lease begins when the Fiesta Marketplace is issued a Certificate of Completion on the total project and terminates on December 31, 1999.. Under the terms of the Agreement, the lease payments shall be paid to the Downtown Santa Ana Business Association (DSARA). This is a triple net lease with the Partnership responsible for all maintenance of the site. The developer will be upgrading the appearance with landscaping, new signage, and other graphic materials. The DSABA has been informed of the lease and concurs with the proposed terms. The third agreement is also between the City and Fiesta Marketplace Partners and pertains to the building being constructed at 305 East Fourth Street. This building will house retail space and a walk-in theater complex. On the east side of the building is a food court that opens onto the existing Mercado area. This Agreement provides that as long as the Agency retains title to the Mercado site, no building shall be constructed within 20 feet of the property line that separates the buildings. If the Agency sells the site to anyone other than the Partnership, the Partnership agrees to close off the door and/or window.openings on the east wall of the building. This Agreement is necessary so that building permits may be issued and the project built as originally conceived with an open air marketplace on the Mercado site. The fourth agreement is between Fiesta.Marketplac,e Partners and the City and pertains to that portion of Spurgeon Street between Third and Fourth Streets closed to vehicular traffic, and improved as an open-air market called "The Paseo". This License Agreement provides a revocable license to the Partners to use' that portion of Spurgeon Street between Third and Fourth Streets for the vending of food, drinks and artifacts and also allows for displays and promotional activities. The agreement requires any vendor who may use the property to maintain liability insurance to name the City as additional insured. Indemnifica- tion to the City is also required of the Fiesta Partners. The. license granted is subordinate to the public right-of-way for right-of-way purposes. ALTERNATIVES CONSIDERED No alternatives have been considered as these agreements are necessary for the implementation of the project. Deputy City Manager/Development January 20, 1987 Page 3 RECOMMMENDED ACTION It is recommended that. the Redevelopment Agency approve and authorize the Chairman to execute the Amendment to the Disposition and Development Agreement, and that the City Council approve and authorize the Mayor to execute the Amendment to the Disposition and Development Agreement, the Lease Agreement, the Property Line Agreement and the License Agreement with Fiesta Marketplace Partners. If you have any questions regarding the matter, please contact me as soon as possible. AA 'Cynt is J. Ne1 on CJN/PN/lj Attachment 020 76B