HomeMy WebLinkAboutR00362 YMCA Lease Agreement -Communtiy Center on Civic Center Site RD-362
INTEROFFICE MEMORANDUM
CITY OF PALM DESERT
DATE : April 27 , 1989
P
TO: HONORABLE CHAIRMAN AND MEMBERS OF REDEVELOPMENT AGENCY
BOARD
FROM : EXECUTIVE DIRECTOR , REDEVELOPMENT AGENCY
SUBJECT: LEASE AGREEMENT WITH YMCA FOR USE OF THE COMMUNITY
CENTER TO BE CONSTRUCTED ON CIVIC CENTER SITE
Recommendation:
That the Agency Board , by minute motion , approve the attached
Lease Agreement with the Family YMCA of the Desert for their
occupancy of the recreation facility to be built on the Civic
Center site, and authorize the Executive Director to execute said
Agreement .
Background:
The Redevelopment Agency is currently in the process of designing
a community center on the Civic Center site. The facility is
budgeted at one million dollars .
In addition , the City' s Capital Improvement Budget has contained
for the past 2-3 years , $300 , 000 offsite improvements for the
facilities . The proposal is that such community center be run
and operated by the Family YMCA of Palm Desert in its efforts to
provide its services to the community.
The Lease Agreement provides that :
1 . The center will be leased to the Family YMCA of the Desert
for an initial term of 10 years ;
2 . The compensation through such initial term to the Agency
will be the provision of community recreation services as
outlined in Exhibit " 5 " ;
3 . The YMCA will deed to the Agency two acres it currently owns
within the Civic Center site;
4. The YMCA will pay one dollar ( $ 1 . 00 ) per year as rent .
• There are two options to extend the lease . Under the same terms
and conditions , the first option could be exercised at the end of
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the initial term and the Agency is only obligated to extend the
lease if the YMCA has built an addition of 5 , 000 sq. ft . The
first option would be for a period of 20 years . There are
provisions for an additional 20 year option if the YMCA has added
another 5 , 000 sq . ft . during the first 20 year option .
The Lease provides that the premises will be used solely as a
nonprofit institution available to the general public for those
services customarily provided by the Family YMCA ; that the YMCA
would be responsible for setting fees and charges for
participation , but that however , participation will not be denied
to any member of the public based on YMCA membership. There is a
nonmember fee that could be established for non-YMCA members ,
provided such fees bear a direct relationship to the costs of
providing the service . The YMCA , under the Agreement , is
required to furnish , install and maintain personal property,
furniture, fixtures and equipment ; maintain all of the premises ;
pay for insurance , utilities and any property taxes that may
result from the YMCA ' s use of facilities . In addition, the YMCA
is to provide for repair and maintenance to the facilities and
not make any alterations unless such alterations are approved by
the RDA and the City . The YMCA is responsible for providing
insurance for both the facility and general liability.
An important provision of the Agreement is that if the YMCA were
to be terminated during the initial term for nonperformance that
the Agency would compensate them for terminating the Lease , and
that the value of such compensation would be equivalent to
$25, 000 for each unused year of the initial 10-year
term.
aki°
Carlos L . Ortega
Executive Director
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Attachment
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