HomeMy WebLinkAboutRD362 Lease Agreement Family YMCA Contract No. RD-362
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INTEROFFICE MEMORANDUM
DEPARTMENT OF,THE CITYMANAGER
CITY OF PALM DESERT •February 1, 1999
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: RAMON A. DIAZ, CITY MANAGER
SUBJECT: LEASE AGREEMENT RD-362 WITH FAMILY YMCA
RECOMMENDATION
The Palm Desert Parks and Recreation Commission considered this request and recommends
approval. Therefore, staff recommends approval of the request.
DISCUSSION
The attached letter from Richard I. Roemer explains the problem currently being faced by the
Family YMCA of the Desert. The agreement requires that the Family YMCA expand 5000
square feet, at their current rate, in order to exercise twenty-five year options. The time period
from the original agreement date extends to May 2000 (see attached current agreement).
The Family YMCA is requesting a five-year extension or postponement of that requirement.
DIAZ
CITY COUNCIL CTION:
deb APPROVED V,�, DENIED
RECEIVED OTHER
Attachments (as noted) „EET '.* SATE _I `qg
•+3RIFIEa 9Y: ,_ �.....
rk's Office
ROEMER,HARNIK&NETHERY,LLP
ATTORNEYS AT LAW
45-025 MANITOu DRIVE
INDIAN WELLS,CALIFORNIA 92210
RICHARD I.ROEMER TELEPHONE(760)360-2400
BRIAN S.HARNIK FACSIMILE(760)360-1211
D.MARTIN NETHERY*
RANDALL S.JACKSON Of Counsel
J.ROBERT VAUGHAN
•A PROFESSIONAL CORPORATION
January 27, 1999 RECEIVED
JAN 2 8 1999
CITY OF PALM DESERT
CITY MANAGER
Mr. James Winklepleck
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Re: Lease Agreement RD-362 with Family YMCA
Dear Mr. Winklepleck:
Reference is made to the above lease agreement that was entered into on May 11, 1989,
between the Palm Desert Redevelopment Agency and the Family YMCA of the Desert. Section
3 of the lease states that the lease shall be for a period of ten years commencing on the
"commencement date". We are advised that the commencement date is approximately May
1990. That date is determined by the definition of"commencement date" as found in Section
1(b) and 3(a). In short, the lease commences on the date of the issuance of the final certificate of
occupancy by the City of Palm Desert.
Section 3(c) gives the YMCA two twenty-five(25) year options subject to making a
minimum expanded improvement to the property of 5,000 square feet for each option period.
Needless to say, it is the intention of the Family YMCA to remain at its present location
for an indefinite period of time. The year and several months before the lease will terminate will
pass very quickly.
The present intention of the YMCA is to build an indoor swimming pool facility in direct
proximity of the existing Family YMCA building in the Civic Center. It is anticipated that the
facility will include two pools, one a"therapy pool"and the other a more typical pool with lanes,
etc. This project will more than meet the expansion requirements of the lease. Due to fund-
raising necessities, it is highly unlikely that this could be accomplished before May 2000.
Based on the foregoing, request is hereby made on behalf of the Family YMCA of the
Desert,that an item be placed on the agenda of the next City Council meeting, whereby the
YMCA will request that Section 3(b) of the lease be amended as follows:
Mr.James Winklepleck
City of Palm Desert
January 27, 1999
Page Two
"(b) Tenn of Lease.
The term of this Lease shall be for a period of fifteen(15)years commencing on
the Commencement Date, and expiring fifteen(15) years thereafter."
The foregoing extends the period for exercising the option indirectly and I believe does
not do violence to the remaining provisions of Section 3.
Please let me know when and if this will appear on the Council's agenda so that I may be
present to answer any questions that may arise.
Thank you for your cooperation.
Ve truly yours,
Ro R,HARNIK&NETHERY,LLP
RI HARD I.ROEMER
RIR:ed
cc: Gerald Hundt, Executive Director
Family YMCA