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HomeMy WebLinkAboutC35840-C29150-C34880 - Portola Cmnty Ctr Lease Agmt Mdfctns CONTRACT NOS. C35840 C29150 CITY OF PALM DESERT C34880 SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: APPROVE PORTOLA COMMUNITY CENTER LEASE AGREEMENT MODIFICATIONS SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: September 28, 2017 CONTENTS: Sample Lease Agreement Modification Recommendation By Minute Motion, approve Portola Community Center Lease Modifications for Christopher's Club House (C35840), Palm Desert Historical Society (C29150), and Malka and Jeff Alley (C34880). Strategic Plan Objective Approval of the Portola Community Center Lease Modifications does not tie into identified goals within the Strategic Plan. Background This year, one of the tenants within the Portola Community Center received a "Notice of Supplemental Assessment" from the Riverside County Assessor-County Clerk- Recorder. In reviewing the lease agreement to determine the responsible party, pertinent language to address such circumstances was not included. As a result, all lease agreements with existing tenants will be amended to include the standard wording as reflected in the attached sample lease agreement modification. Since the City is required to report all leases to the County and the City is a non-taxable entity, any lessee of the City could possibly be assessed a possessory interest tax as determined by the County. However, non-profits may file a welfare exemption with the County requesting exemption from the possessory interest tax. STAFF REPORT PORTOLA COMMUNITY CENTER LEASE MODIFICATION SEPTEMBER 28, 2017 PAGE 2 Fiscal Analysis The above request does not impact the City's General Fund. Submitted By: `- Frankie Riddle, Director of Special Programs Reviewed: ane Moore, Director of Finance Approval: Lori Aylaian, City Manager LEASE AGREEMENT MODIFICATION This Lease Agreement Modification is entered into this day of , 2017, by and between the CITY OF PALM DESERT, a municipal corporation (the "Lessor"), and the , a (the "Lessee"). WITNESSETH 1. PREMISES. Pursuant to Lease Agreement dated ("Lease") Lessor leased to Lessee and Lessee leases from Lessor that certain space (the "Leased Space") on the first floor of the building at 45-580 Portola Avenue in the City of Palm Desert, California, commonly known as the Portola Community Center (the "Building"). 2. TERM. The term of the Lease commenced and automatically continues unless terminated as provided in the Lease. 3. REAL PROPERTY TAXES. The City of Palm Desert is a Property Tax Exempt Entity. This Lease Agreement Modification is to memorialize that any real estate taxes, including possessory interest taxes, assessed against Suite No. are the responsibility of the tenant for payment. 4. All other terms and conditions of the lease shall remain the same. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR: LESSEE: CITY OF PALM DESERT By: By: JAN C. HARNIK, MAYOR ATTEST: Print Name: RACHELLE KLASSEN, CITY CLERK Title: