Loading...
HomeMy WebLinkAbout25C - AGMT - DELHI GROUND LEASEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 5, 2016 TITLE: AGREEMENT AMENDMENT WITH DELHI CENTER TO EXTEND THE GROUND LEASE {STRATEGIC PLAN NO. 5,413) �1 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the ground lease agreement with Delhi Center to extend the expiration date from September 6, 2020 to September 6, 2040, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On September 5, 2000, the City of Santa Ana entered into a 20 -year ground lease agreement with Delhi Center, a California non - profit corporation, to permit the construction of a community center and ancillary parking areas at Delhi Park located at 2314 South Halladay Street. Delhi Center provides community programs and day care facilities for the residents of Santa Ana. On December 1, 2008, an amendment was approved to allow Delhi Center to expand the original lease area to accommodate a new fenced playground, which allowed Delhi Center to implement a California Head Start educational facility within the existing community center. Under the terms of the existing agreement, Delhi Center may elect to extend the term of the lease for a period of 20 years and 10 years, respectively, commencing on the expiration of the original term and /or extended term. In order to extend the term Delhi Center must provide written notice to extend the term at least 30 days before expiration term, which has been provided to the City. Delhi Center has requested an early extension to the ground lease in order to obtain funding for the operation and deferred maintenance of the center. All terms and conditions of the original ground lease shall remain in full force and effect. 25C -1 Agreement Amendment with Delhi Center July 5, 2016 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy B (Improve neighborhood quality by locating or providing access to complementary services and public facilities, including access to healthy food options (community gardens, farmers' markets, corner markets, etc.) in neighborhoods). FISCAL IMPACT The City will continue to receive as rent an annual payment of $1.00 for each year during the original and extended term of the lease, as per the terms of the existing agreement. Funds will be deposited into Parks, Recreation and Community Services Agency - Miscellaneous Recoveries revenue account (no. 01113002 57010). Gerardo Mouet Executive Director Parks, Recreation and Community Services Agency EXHIBIT: 1. Agreement Amendment APPROVED AS TO FUNDS AND ACCOUNT: t Francisco Gutierrez Executive Director Finance and Management Services Agency 25C -2 SECOND AMENDMENT TO THE GROUND LEASE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE DELHI CENTER THIS SECOND AMENDMENT TO THE GROUND LEASE AGREEMENT is entered into this 5`i' day of July, 2016 by and between the City of Santa Ana, a municipal corporation and charter city duly organized and existing under the Constitution and laws of the State of California ( "Landlord "), and the Delhi Center, a California nonprofit public benefit corporation ( "Tenant ") (collectively referred to as the "Parties "). RECMLS A. The parties entered into that certain Ground Lease Agreement # A -2000 -154 dated September 5, 2000 ( "Ground Lease "), by which the Landlord leased real property to the Tenant for construction of a Community Center. A copy of the Ground Lease is attached as Exhibit 1, B. On December 1, 2008, the Parties entered into First Amendment to Ground Lease # A- 2008 -334 to allow for the construction of an expansion to the Community Center. A copy of the First Amendment is attached as Exhibit 2. C. The term of the Ground Lease is for a period of twenty (20) years, from September 6, 2000 through September 5, 2020, and the Ground Lease remains in effect as amended. D. The Parties wish to further amend the Ground Lease in order to extend the term for a period of twenty (20) years, as permitted by Section 1.04 of the Ground Lease. Wherefore, in consideration of the covenants contained in the Ground Lease and First Amendment, and subject to all the terms and conditions of the Ground Lease and First Amendment, the Parties hereby agree as follows: I. The term of the Ground Lease shall be extended for the twenty (20) year period beginning September 6, 2020 and ending September 5, 2040, unless terminated earlier pursuant to the applicable provisions of the Ground Lease. 2. Except as modified by this Second Amendment, and the First Amendment, all terms and conditions of the Ground Lease shall remain in full force and effect. IN WI'T'NESS WHEREOF, the parties hereto have executed this Second Amendment to Agreement on the date and year first written above. -- signatures ors,inllolezng page -- Page 1. of 2 Imo' L ATTEST: CITY OF SANTA ANA, it municipal corporation and charter city duly organized and existing under the Constifut,ion and laws of the State of California ( "Landlord ") MARIA D. HIAZAR DAVID CAVAZ,OS Clerk of the Council City Manager APPROVED AS TO FORM: DELIil CENTER,, a California nonprofit public benefit corporation SONIA R. CAR VALHO City Attorney By' -- Johrrw�—unk JC IOS Assistant City Attorney C tleYf E ecutie , ffic r RECOMMENDED FOIL APPROVAL: GERARDO MOUET Executive Director of the Parks, Recreation and Community Services Agency Page 2 of 2 m ■n