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Home My WebLink AboutC19712 - 2nd Amndmnt to Lease Agmt for Washington St Sheriff Substn Contract No. C19712 7 CITY OF PALM DESERT �� y�� ,-� /��- -.i - �: 1 . . . . • �� Community Services Division � �� . _• Staff Report REQUEST: REQUEST FOR APPROVAL OF SECOND AMENDMENT TO THE LEASE AGREEMENT WITH FKC PALM DESERT PARCEL 1, LLC, FOR WASHINGTON STREET SHERIFF SUBSTATION (Contract No. C19712) SUBMITTED BY: Sheila R. Gilligan, ACM/Community Services DATE: July 9, 2009 CONTENTS: Second Amendment to Lease Agreement RECOMMENDATION: By Minute Motion: 1)Approve the Second Amendment to the Lease Agreement with FKC Palm Desert Parcel 1, LLC, for the Washington Street Sheriff Substation (Contract No. C19712) in the amount of $1.00 for the one-year term commencing July 1, 2009, and expiring June 30, 2010; 2) authorize the Mayor to execute same. BACKGROUND: Attached is the Second Amendment to the Lease Agreement with FKC Palm Desert Parcel 1, LLC, for the Washington Street Substation. This amendment has been subject to finro different discussions with the City Council in Study Sessions. Staff was directed to proceed with extension of the lease, provided it was for a nominal amount. The property owner has agreed to lease the substation to the City of Palm Desert for a total of$1.00 for the one-year term beginning July 1, 2009, and expiring on June 30, 2010. This will save the City approximately$60,000 for Fiscal Year 2009/2010. There are no options to extend after June 30, 2010; however, the new Palm Desert Sheriff Substation is scheduled to open in May, which significantly reduces the need for the substation on Washington�treet. CITY COUNCIL STAFF REPORT JULY 9, 2009 RE: REQUEST FOR APPROVAL OF SECOND AMENDMENT TO THE LEASE AGREEMENT WITH FKC PALM DESERT PARCEL 1, LLC, FOR WASHINGTON STREET SHERIFF SUBSTATION (Contract No. C19712) Staff recommends that the City Council, by Minute Motion: 1) Approve the Second Amendment to the Lease Agreement with FKC Palm Desert Parcel 1, LLC, for the Washington Street Sheriff Substation (Contract No. C19712)in the amount of$1.00 for the one-year term commencing July 1, 2009, and expiring June 30, 2010; 2) authorize the Mayor to execute same. __.. :ry � ; � �, _ , � �� h t' , i � l , SHEILA R. LIGAN ACM/COMMUNITY SE ICES �� PAUL S. GIBSON M. WOLHMUTH FINANCE DIRECTORCITY TREASURER C MANAGER SRG:mpg CITYCOUNCILA ON APPROVED � DFN�ED RECEIVED OTHER MEET C,,� ATE - AYES: r � NOES: ABSENT: ABSTAINs VERIFIED BY: Original on File with City rk's Office 2 � � , � � �� '�r ';� , ty � ,�. c� � i� � �� ' P R O P E R T I L= S, I �! C Z�L}9 ��1� -5 �,� 1 I� �� June 3, 2009 Ms. Sheila R. Gilligan CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 RE: SECOND AMENDMENT TO LEASE FOR THE PREMISES LOCATED AT 42-305 WASHINGTON STREET, SUITE E, PALM DESERT, CA 92211 Dear Sheila: Enclosed please find four (4) duplicate original Second Amendments to Lease as they relate to the lease renewal for Sheriff's substation and recruitment center at the above referenced location. Please have the appropriate individual initial each page in the lower right hand corner and sign the Amendment in the signature block located on the third page. After the documents have been signed off, please re#urn three (3) of the Amendments back to my office for final execution. Once the Amendment has been counter signed, I will return a fully executed copy back to you for the City's files. Please feel free to contact me should you have any questions. You can always reach me at 714.528.9864 extension 202. Best regards, �--U"U t`l,U � my Ra il Senior ager Enclosure — Second Amendment to Lease FKC PROPERTIES, INC. • FKC LLC 101 S. Kraemer Blvd.,Suite 136 • Placentia,CA • 92870 Office: 714.528.9864 Fax: 714.528.6641 Website: www.fkcproperties.com � Contract No. C19712 SECOND AMENDMENT TO LEASE City of Palm Desert, a municipal corporation THIS SECOND AMENDMENT TO LEASE ("Amendment") is made and entered into as of the 2"d dav of June, 2009 by and between FKC PALM DESERT PARCEL 1, LLC, a California limited liabilitv companv ("Landlord") and CITY OF PALM DESERT, a municipal corporation ("TenanY'). RECITALS A. Landlord and Tenant are parties to that certain lease dated February 13th, 2002 and as assigned by and between HOMA, LLC, a Delaware limited liability company (Assignor) and FKC Palm Desert Parcel I, LLC, a California limited liabitity company (Assignee) and as amended by that Amendment No. 1 dated June 24, 2004 (collectively, the "Lease"). Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 2,100 +/- rentable square feet (the "Premises") described as 42-305 Washinqton Street, Suite E, Palm Desert, CA 92211 (the"Building"). B. By this Amendment, Landlord and Tenant desire to modify the Lease as provided herein. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: AGREEMENTS 1. Whereas, Landlord and Tenant desire to amend the Lease and extend the lease for the following term: EXTENDED LEASE TERM: 1 Year(12 Lease Months) Commencement Date: July 1, 2009 Expiration Date: June 30, 2010 2. RENT: Section 4 of the Lease is hereby amended as follows: 4.1 During the extended term of this Lease, Tenant shall pay to Landlord, the sum of$1.00 which shall be paid upon execution of this Second Amendment. 4.4 Security Deposit. Tenant shall have no obligation to pay Landlord a security deposit. 3. Utilities, Maintenance and Insurance: Section 5 of the Lease is hereby amended as follows: 5.1 Utilities: Tenant shall make all arrangements for and shall pay for all utilities and services furnished to or used by it including, without limitation, electricity, telephone service, and janitorial services (including trash removal from the Premises), and for all connection charges. Landlord shall not be liable for failure to furnish such utilities or services to the Premises when the failure results from causes beyond Landlord's reasonable control. 5.2 Maintenance: Landlord shall provide all exterior maintenance of the Building and grounds, including, but not limited to parking lot maintenance, gardening services, trash disposal, maintenance of the systems providing temperature controlled water and return, air conditioning, plumbing and electrical roof maintenance and repair, water and electricity charges for common areas and parking lot, and all other expenses related to the maintenance and repair of the Building, including the cost of public liability insurance for damage arising out of the maintenance, use, or occupancy of the building and grounds. 5.3 Monthly Common Area Charqes: During this extended term, Tenant shall be exempt from paying Landlord monthly Common Area Charges. 4. Use and Occupancy: Section 6.2.D. Maintenance by Tenant is hereby amended in its entirety as follows: 6.2.D. Maintenance by Tenant. Except as otherwise provided in this Lease, to 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, including, without limiting the foregoing, all fixtures, interior walls, floors, ceilings, sides, all interior Building appliances and similar equipment, windows, doors and plate glass. 5. Notices. Section 13.6 of the Lease, Landlord's Notices address is hereby amended as follows: If to Landlord: FKC PALM DESERT PARCEL 1, LLC, a California limited liability company 101 South Kraemer Boulevard, Suite 136, Placentia, CA 92870 6. AUTHORITY TO EXECUTE AGREEMENT. Each individual executing this Amendment on behalf of a partnership, corporation or other entity represent that he or she is duly authorized to execute and deliver this Amendment on behalf of the corporation, partnership and/or other entity and agrees to deliver evidence of his or her authority to Landlord prior to the execution of this Amendment. 1 Initial Here � � ' Contract No. C19712 7. ENTIRE AGREEMENT. This Amendment represents the entire agreement among the parties with respect to the matters contained in this Amendment and supersedes any prior negotiations, representations, or agreements, whether written or oral, with respect to the subject matter contained herein. Nothing in this Amendment shall be deemed to waive or modify any of the provisions of the Lease, except as expressly stated herein. This Amendment may be amended, modified, or altered only by written instrument, signed by Landlord and Tenant. 8. INCONSISTENCIES. Except as modified or amended herein, each and all of the terms, covenants and conditions of the Lease are hereby ratified and confirmed and remain in full force and effect. If there are any inconsistencies between this Amendment and the Lease the provisions of this Amendment shall prevail. 9. LEGAL ADVICE; NEUTRAL INTERPRETATION; HEADINGS. Each party has received independent legal advice from their attorneys with respect to the advisability of executing this Amendment and the meaning of the provisions hereof. The provisions of this Amendment shall be construed as to their fair meaning, and, not for or against any party based upon any attribution to such party as the source of the language in question. Headings used in this Amendment are for convenience of reference only and shall not be used in construing this Amendment. 10. JOINT DRAFTING: The Amendment contained herein shall not be construed in favor of or against either party, but shall be construed as if both parties prepared this Amendment. Landlord and Tenant acknowledge that they have been represented, or have had the opportunity to be represented, by counsel of their own choice. Neither Landlord nor Tenant is relying upon any legal advice from the other party's counsel regarding the subject matter thereof. Both parties acknowledge that they understand the terms and conditions of this Amendment and the terms and conditions of all other documents and agreements executed in connection herewith and that they sign the same freely. Neither Landlord nor Tenant shall deny the enforceability of any provision of this Amendment or any of the other documents or agreements executed in connection herewith on the basis that it did not have legal counsel or that it did not understand any such term or condition. This Amendment and any ambiguities or uncertainties contained in this Amendment shall be equally and fairly interpreted for the benefit of and against all parties to this Amendment and shall further be construed and interpreted without reference to the identity of the party or parties preparing this document, it being expressly understood and agreed that the parties hereto participated equally in the negotiation and preparation of this Amendment or have had equal opportunity to do so. Accordingly, the parties hereby waive the legal effect of California Civil Code Section 1654 or any successor and/or amended statute which in part states that in cases of uncertainty, the language of the contract should be interpreted most strongly against the party who caused the uncertainty to exist. The captions used herein are for convenience only and are not a part of this Amendment and do not in any way limit or amplify the terms and provisions hereof. 11. NONDISCLOSURE OF LEASE TERMS. Tenant acknowledges and agrees that the terms of this Lease are confidential and constitute proprietary information of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord's relationship with other tenants. Accordingly, Tenant, TenanYs partners, managers, members, officers, directors, employees, agents and attorneys agree they shall not intentionally and voluntarily disclose the terms and conditions of this Lease to any newspaper or other publication or any other tenant or apparent prospective tenant of the Building or other portion of the Office Building Project, or real estate agent, either directly or indirectly, without the prior written consent of Landlord, provided, however, that Tenant may disclose the terms to prospective subtenants or assignees under this Lease. 12. CHOICE OF LAW. This Amendment shall be governed by and construed in accordance with the domestic laws of the State of California applicable to agreements executed and to be fully performed therein without giving effect to any choice of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. The parties hereto agree that any suit, action or proceeding arising out of or relating to this Amendment shall be instituted and prosecuted in the Superior Court of California, and the parties hereto irrevocably submit to the jurisdiction of said court and waive any rights to object to or challenge the appropriateness of said forum. 13. SEVERABILITY. If any term, covenant, condition or provision of this Amendment, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Amendment, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 14. SUBMISSION OF AGREEMENT. The submission of this Amendment to Tenant, TenanYs agent or attorney for review or signature does not constitute an offer to Tenant. This Amendment shall have no binding force or effect until its execution and delivery by both Landlord and Tenant. 2 Initial Here , . - Contract No. C19712 15. RATIFICATION OF LEASE: Except for the amended sections expressly contained herein, all other terms and conditions of the above-described Lease shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, this Amendment has been executed effective as of the day and year first above written. Dated: Dated: LANDLORD: TENANT: FKC PALM DESERT PARCEL 1 LLC City of Palm Desert, a California limited liability company a municipal corporation By: FKC LLC, a California limited liability company sole Managing Member By: By: Kraemer Vl, Inc., a California Corporation Its Managing Member By: Brett S.Albrecht Authorized Agent 3 Initial Here