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Home My WebLink AboutTUP 09-443 - PD RC Raceway/C.Marrale & D.Piszczor Contract No. C29460 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: AUTHORIZATION OF A TEMPORARY USE PERMIT AND ONE- YEAR LEASE AGREEMENT WITH PALM DESERT RC RACEWAY / CHRIS MARRALE AND DONNA PISZCZOR FOR THE USE OF A REMOTE CONTROLLED CAR RACETRACK. SUBJECT PROPERTY IS A VACANT CITY-OWNED PARCEL LOCATED ON PAINTERS PATH WEST OF THE DESERT CROSSINGS SHOPPING CENTER (APN# 640-091-010). SUBMITTED BY: Ryan Stendell, Senior Management Analyst APPLICANT: Palm Desert RC Raceway/Chris Marrale & Donna Piszczor 78-865 Sonesta Way La Quinta, CA 92253 DATE: January 14, 2010 CASE NO: TUP 09-443 CONTENTS: Draft Lease Agreement Plans & Exhibits Recommendation 1 . That the City Council authorize the Director of Community Devetopment to issue Temporary Use Permit 09-443 allowing the operation of a RC Racetrack on said property, and; 2. That the City Council authorize the Mayor to execute a one year lease agreement with Palm Desert RC Raceway/Chris Marrale and Donna Piszczor for said property. Commission Recommendation At its regular meeting of December 1, 2009, the Parks and Recreation Commission reviewed the proposed use of this property and associated lease agreement. The Commission was enthusiastic about the re-opening of this facility and discussed ways to improve upon the facility. Discussions centered on the facility's ability to handle a large scale event, if any were to be proposed. The Commission approved the recommendation to the City Council by a unanimous vote (6-0-3, Staff Report TUP 09-443/Palm Desert RC Raceway Page 2 of 3 January 14, 2010 Commissioners Dash, Munson, and Schukart absent), subject to incorporating items discussed by the Commission. Backqround In October of 2002, the City Council authorized a lease agreement on the subject property with HobbyTown USA for the use of a remote control (RC) car racetrack on the subject property. At the time, Hobbytown USA was occupying space within the Desert Crossings Shopping Center. Hobbytown USA operated an RC track on this property for several years until the business closed in 2008. City staff secured the site once the City was notified that HobbyTown USA was no longer in business. The previous operator left behind most of the equipment used to operate the business. Staff had very minor operating issues with the previous operator, and is not aware of any complaints that were received based on this use. Chris Marrale & Donna Piszczor/Palm Desert RC Raceway have proposed to reopen the RC car racetrack facility as it was during the operation of HobbyTown. Mr. Marrale and his family have teamed up with Uncle Don's Hobby Shop of Palm Desert to form the team that will manage the facility. Based on staff's experience with the use of this property as an RC car track, staff is proposing a similar arrangement as was given to HobbyTown USA. Proposed is a one- year temporary lease agreement with Palm Desert RC Raceway / Chris Marrale and Donna Piszczor. This lease agreement was drafted by the City Attorney and includes all necessary insurance and hold harmless requirements. The one-year agreement will give staff time to evaluate the use and determine its long term viability. In addition, it will allow Palm Desert Raceway time to get up and running. Staff can revaluate this use after one year and determine whether a longer term lease could be considered. Staff has conditioned the project to provide monthly reports to the Public Works/Parks Department outlining safety, financial, and attendance records. Additionally, the operators are to gain approval from the City in advance for any large scale events that might occur. G:\Planning\Ryan Stendell\Word Data\RC Track\Staff RepoR_CC.DOC Staff Report TUP 09-443/ Palm Desert RC Raceway Page 3 of 3 January 14, 2010 Fiscal Analvsis There is no cost incurred to the City for this proposed project except for minimal review and observation of the operators of the facility. The proposed 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 additionally insured. Submitted By: Department Head: 1,lI Ryan Stendell, Sr. Management Analyst Lauri Aylaian, Dir. of Community Development d `" r — Pau S. Gibson, Director of Finance CITY COUNCILA ON Ap val: APPROVFD � DENtED RECEIVED OTHER M�ETING DATE - ' J M. Wohlmuth, City Manager AYF,S: �I��F.7: �V V/! � �..�.�.r� � ��.��.��i.�rr ` ABSEI�IT: A i3S'TA[N: VFRIFII:D BY: �C Originxl on File with Ci Clcrk's Office G:\Planning\Ryan Stendell\Word Data\RC Track\Staff Report_CC.DOC Contract No. HA26630 DRAFT LEASE AGREEMENT This Lease Agreement ("Lease") is made and entered into as of this day of , 2009, by and between the City of Palm Desert, a Municipal Corporation ("Landlord") and Donna Piszczor ("Tenant"), with reference to the following facts: RECITALS A. WHEREAS, 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. 21 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 Le�al Effect. The terms, covenants and conditions of this Lease shall become legally binding on the Term Commencement Date. RMBUS\DERWIN�11712.1 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. 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. RM B US\DER W IN\311712.I 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. Assi�nment 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. 11. No Waiver of Breach. No failure by either Landlord or Tenant to insist upon the strict perfarmance by the other of any covenant, agreement, term r 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. RM BUS\DERW I[V�3 I 1712.I 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 be 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. � If to Landlord: City of Palm Desert Attention: City Manager 73-510 Fred Waring Drive Palm Desert, CA 92260 If to Tenant: Palm Desert Raceway C/O Donna Piszczor 78-865 Sonesta Way La Quinta, CA 92253 � 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 Headin�s. 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 Governin�w. This Agreement shall be construed and governed by the laws of the State of California. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] RMBUS\DERWIN\31 I712.1 IN WITNESS WHEREOF, 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 Donna Piszczor, Palm Desert RC Raceway , Mayor ATTEST: Rachelle D. Klassen, City Clerk Approved as to Form: David J. Erwin City Attorney for City of Palm Desert RMBUS\DERW IN\3 I 1712.I Contract No. HA26630 EXHIB IT "A" DESCRIPTION OF PREMISES APN No. 640-091-010, vacant property behind the Desert Crossings Shopping Center. 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