HomeMy WebLinkAboutC29464 - 1yr Lease Agmt - APN 640-091-010 Contract No. C29464
CITY OF PALM DESERT
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
REQUEST: AUTHORIZATION OF A ONE-YEAR LEASE AGREEMENT WITH
CHRISTOPHER DOLAN FOR THE OPERATION OF A REMOTE
CONTROLLED CAR RACETRACK ON A VACANT CITY-OWNED
PARCEL (APN# 640-091-010)
SUBMITTED BY: Kimberly Warpinski, Management Analyst
APPLICANT: Christopher Dolan
Palm Desert RC Raceway, LLC
72440 Painters Path
Palm Desert, CA 92260
DATE: May 25, 2017
CONTENTS: Lease Agreement
Vicinity Map
Recommendation
By Minute Motion, authorize the Mayor to execute a one-year lease
agreement (Contract No. C29464) with Christopher Dolan for the operation
of a remote controlled car racetrack on a vacant City-owned parcel located
on Painters Path (APN# 640-091-010).
Background
In January 2013, the City Council authorized the fourth one-year lease agreement at a
rental of$1 per year for the operation of the Palm Desert RC Raceway on a vacant City-
owned parcel on Painters Path west of Desert Crossing Shopping Center (see attached
vicinity map). The operators had continued to successfully operate the raceway for four
years and had made several improvements to the site. The previous lease expired in
2014, causing a prolonged period of inactivity at the site. Now, Chris Dolan wishes to
reestablish the site as an operable RC Raceway for hobby enthusiasts and educational
purposes. He has established the Palm Desert RC Raceway, LLC in anticipation of this,
and would like to officially begin operating with a one-year lease under his new
leadership.
Staff Report
Palm Desert RC Raceway, LLC
May 25, 2017
Page 2 of 2
Staff has worked closely with the organizers over the years to ensure that the site was
operated and maintained according to City standards and Christopher Dolan has been
involved with the raceway for a number of those years. Staff has performed inspections
during times when the track layout has been changed and will continue to do so in the
future. Operations of the facility generally occur in the evening hours and weekends.
Staff has not received any complaints in regard to the facility and recommends offering
the applicant a one-year lease agreement for the site.
Fiscal Analysis
There are no costs incurred by the City except for minimal staff time for review and
observation of the operation of the facility. The lease agreement calls for the payment
of one dollar to the City annually and provides insurance levels of $2,000,000 combined
single limit, with the City named as an additional insured.
Submitted By: Reviewed and Concur:
. C jc
Kimb4rly Warpins i V J Moore, Director of Finance
Management A lyst
Ryan Stendell
Director of Community Development
Approval:
Lauri Aylaian, City Manager
G\Panning\Kimberly Warpinski\RC Raceway\SR Lease for Remote Control Car Raceway-Chris Dolan doc
CONTRACT NO. C29464
LEASE AGREEMENT
This Lease Agreement ("Lease") is made and entered into as of this 25th day of May,
2017, by and between the City of Palm Desert, a Municipal Corporation ("Landlord") and
Christopher Dolan ("Tenant"), with reference to the following facts:
RECITALS
A. WI IEREAS, Tenant operates, a remote controlled (RC) car racetrack
and;
B. WHEREAS, Landlord is the owner of a parcel of property ("Premises"),
described with particularity in Exhibit `'A" attached hereto and incorporated herein by this
reference; and
C. WHEREAS, Tenant desires to lease from Landlord and Landlord desires to lease
to Tenant the Premises on the terms and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:
1. Leased Premises. Landlord leases to Tenant, and Tenant hires from
Landlord, for the term, at the rental and upon the conditions in this Lease
the Premises. Tenant accepts condition of premises and agrees to maintain
premises in condition as provided for in Section 4.2.
2. Term of Lease.
2.1 Term. The term of this Lease shall be 1 year, commencing on the
date (the "Term Commencement Date") that this Lease has been
executed.
2.2 Date of Lease and Legal Effect. The terms, covenants and
conditions of this Lease shall become legally binding on the Term
Commencement Date.
3. Rent. During the Term of this Lease and any extension thereof Tenant
shall pay Landlord $1.00 per year as minimum yearly rent.
4. Utilities & Maintenance.
4.1 Provided by Landlord. Landlord shall provide no services nor
maintenance for the premises.
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CONTRACT NO. C29464
4.2 Provided by Tenant. Except as otherwise provided in this Lease,
Tenant shall pay any and all expenses required and keep and
maintain the Premises and every part thereof in and about the
Premises in good order, condition and repair, normal wear and tear
excepted. Tenant shall be responsible for general upkeep of the
Premises and shall provide service therefore. Tenant shall also
inspect and provide reasonable daily upkeep for the grounds of
which the Premises are a part, to the extent that such areas are used
by Tenant.
5. Taxes.
5.1 Landlord Taxes. Landlord shall have no responsibility for
payment of any real property taxes and assessments levied and
assessed against the land of which the Premises are a part.
5.2 Tenant Taxes. Tenant agrees to pay, before delinquent, all real and
personal property taxes levied or assessed on Tenant's property
located on the Premises, at Tenant's sole cost and expense, if any.
6. Insurance and Indemnification.
6.1 Landlord's Insurance. Landlord shall obtain and maintain, at
Landlord's sole cost and expense, insurance in such coverages and
in such amounts as Landlord determines, in Landlord's sole
discretion.
6.2 "Tenant's Insurance. Tenant shall obtain and maintain, at Tenant's
sole cost and expense, broad-form comprehensive public liability
insurance with limits of not less than One Million Dollars
($1,000,000) per person and $1,000,000 each occurrence, insuring
any and all liability of Tenant with respect to the Premises, and
property damage liability insurance with a limit of not less than
$1,000,000 each accident or $2,000,000 combined single limit, and
Tenant shall name Landlord as an additional insured, at Tenant's
sole cost and expense.
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CONTRACT NO. C29464
6.3 Mutual Indemnification. Each of the parties hereto hereby agrees
to indemnify, defend, protect and hold harmless the other and any
and all agents, employees and representatives of the other from and
against all losses, liabilities, claims, damages costs and expenses,
including without limitation, attorneys' fees, arising out of or in
connection with its activities or the activities of its employees,
agents and contractors, and this Lease.
7. Permitted Use.
7.1 Tenant shall use the Premises solely for the purposes of operating a
remote controlled car race track.
8. Landlord's Right to Enter Premises. Landlord reserves, and shall at any
and all times have, the right to enter the Premises upon reasonable notice
to Tenant to inspect same, to submit the Premises to prospective tenants,
to post notices of non-responsibility, and to repair the Premises.
9. Assignment and Subleasing. Tenant shall not assign, mortgage, or
hypothecate this Lease in whole or in part, nor sublet all or any part of the
Premises, without the prior written consent of Landlord in each instance.
which consent may be withheld, reasonably or otherwise, in Landlord's
sole and absolute discretion.
10. Termination. Either party hereto may terminate this Lease upon thirty
(30) days' prior written notice to the other party.
II. No Waiver of Breach. No failure by either Landlord or Tenant to insist
upon the strict performance by the other of any covenant, agreement, term
or condition of this Lease or to exercise any right or remedy consequent
upon a breach thereof, shall constitute a waiver of any such breach or of
such covenant, agreement, terms, or condition. No waiver of any breach
shall affect or alter this Lease, but each and every covenant, condition,
agreement, and term of this Lease shall continue in full force and effect
with respect to any other then existing or subsequent breach.
Time is of the essence of this Lease, and of each provision.
All notices and other communications hereunder shall be in writing and shall be delivered
in person or sent by registered or certified mail, postage prepaid, commercial overnight courier
(such as Express Mail, Federal Express, etc.) with written verification of receipt or by facsimile.
A notice shall he deemed given: (a) when delivered by personal delivery (as evidenced by he
receipt); (b) three (3) days after deposit in the mail if sent by registered or certified mail; (c) one
(1) business day after having been sent by commercial overnight courier as evidenced by the
written verification of receipt; or (d) on the date of confirmation if faxed.
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CONTRACT NO. C29464
If to Landlord: City of Palm Desert
Attention: City Manager
73-510 Fred Waring Drive
Palm Desert, CA 92260
If to Tenant: Palm Desert RC Raceway, LLC
C/O Christopher Dolan
72440 Painters Path
Palm Desert, CA 92260
Any party may change its address for receiving notice by written notice given to
the others named above.
This Lease contains the entire agreement of the parties with respect to the matters covered by this
Lease, and no other agreements, statements, or promise made by any party, or to any employee.
officer, or agent of any party, which is not contained in this Lease shall be binding or valid.
11.5 Headings. The subject headings of the sections and paragraphs of this
Lease are included for purposes of convenience only and shall not affect
the construction or interpretation of any of its provisions.
Should either party commence any legal action or proceeding against the other based on this
Lease, the prevailing party shall be entitled to an award of attorney's fees.
11.7 Counterparts. This Agreement may be executed in any one or more
counterparts, and all so executed shall constitute one and the same
instrument.
11.8 Governing Law. This Agreement shall he construed and governed by the
laws of the State of California.
IN WITNESS WIIEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives on the date first above written.
TENANT: LANDLORD:
CITY OF PALM DESERT, a municipal corporation
Christopher Dolan, Jan C. Harnik, Mayor
Palm Desert RC Raceway, LI,C
ATTEST: Approved as to Form:
Rachelle D. Klassen, City Clerk Robert Hargreaves
City of Palm Desert, California City Attorney
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CONTRACT NO. C29464
EXI lIBIT "A"
DESCRIPTION OF PREMISES
APN No. 640-091-010, vacant property behind the Desert Crossings Shopping Center. See
attached.
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