HomeMy WebLinkAbout25B - AGMT GRAND CENTRAL LEASEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 5, 2011
TITLE:
AMENDMENT TO LEASE AGREEMENT
WITH GRAND CENTRAL
?l `?
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1s` Reading
0 Ordinance on 2rtl Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and the Clerk of the Council to execute the attached third
amendment to the lease agreement with California State University, Fullerton, subject to non-
substantive changes approved by the City Manager and City Attorney.
DISCUSSION
In 1995, the Community Redevelopment Agency entered into an agreement with the California
State University, Fullerton (CSUF) Foundation to operate its Graduate Visual Arts Program at the
Grand Central building located at East Second Street and Broadway in the Artists Village. The
building was completely renovated by the Agency for use by the University. On April 5, 2004, at
a joint hearing, the Agency amended the lease agreement with CSUF extending the term for an
additional 20 years and executed an agreement assigning the lease to the City. The Grand
Central Art Center includes three art galleries, a live performance "black box" theater, a
printmaking studio and a restaurant. There are also 27 student residential units with studio space
for each resident use.
Since opening in February 1999, the facility has been a tremendous asset to the City, the
University, the Artists Village and the entire Downtown. Under the terms of the agreement and
consistent with the intended use of the building, CSUF sublet space to a printmaking studio,
Watermark Printmaking Workshop and Gallery. Watermark Printmaking Workshop and Gallery
has occupied the tenant space since the opening of the Grand Central Arts Center. However,
due to the decrease in demand-for this type of service, they have given CSUF a 90-day notice to
terminate their sublease agreement. In recent years, the fine art print market has diminished
substantially; and CSUF has indicated that to find a similar service to fill the space would prove to
be difficult.
Given the evolution of the arts, the University focused its efforts on attracting a business to fill the
space that could collaborate with them in outreaching to the community in the areas of
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Amendment to Lease Agreement with CSUF
December 5, 2011
Page 2
sustainability, architecture, culinary arts, and performing and visual arts. As a result, an
amendment to the lease with CSUF is needed to refine the list of acceptable uses to reflect
current technology and market conditions, particularly in the arts. CSUF has been negotiating
with the Road Less Travelled to occupy the tenant space. The Road Less Travelled holds a
similar vision to work as a collaborative partner with CSUF to better engage the community in the
creative process. The Road Less Travelled focuses on eco-friendly products with an emphasis
on sustainable lifestyles and is anticipated to be a welcomed addition in the Artists Village.
A Road Less Travelled is consistent with the Urban Center Zone under the Transit Zoning Code
and will further the City's goal of creating a vibrant downtown. By creating a more active
storefront, it will enhance the viability and visual connection of the Grand Central building with the
Second Street Mall. The City approves of the sublease to The Road Less Travelled as an
authorized use pursuant to the terms of the lease as amended. Therefore, no separate formal
action is required on the sublease.
FISCAL IMPACT
There is no fiscal impact associated with this action.
?--?-?J
Nancy T. E ards
Interim Exe ive Director
Community Development Agency
NTE/GPL/mr
Exhibit: 1. Amendment
2. Map
25B-2
THIRD AMENDMENT TO LEASE AGREEMENT
THIS THIRD AMENDMENT TO LEASE AGREEMENT, made and entered into this 5`h
day of December, 201 1, by and between California State University, Fullerton Foundation, a
California corporation (hereinafter "Tenant"), and the City of Santa Ana, a charter city and
municipal corporation (hereinafter "Landlord").
RECITALS
A. The Community Redevelopment Agency for the City of Santa Ana ("Agency") entered
into a Lease Agreement with Tenant dated June 19, 2005, for Tenant to operate its Visual
Arts Program.
B. On April 5, 2004, the Agency assigned said Agreement to the City as ?.andlord. The
parties desire to amend said Agreement to update the list of acceptable uses to reflect
current technology and market conditions.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties agree as follows:
1. Section 7 of the Agreement, "Use", shall be amended to expand the list of acceptable
uses to reflect current technology and market conditions, particulary in the arts. This can
include, but is not limited to, eco-friendly sustainable uses, architecture, culinary arts,
performing and visual arts, and retail combined with these uses.
2. All other terms and conditions included in said Agreement shall have the same force
and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment the date and
year first above written.
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH STRAKA
Interim City Attorney
By:
Lisa Storck
Assistant City Attorney
LANDLORD -SANTA ANA
Paul Walters
Interim City Manager
TENANT
California State University, Fullerton
By:
Title:
Tax ID#
EXHIBIT 1
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