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Home My WebLink AboutC29461 Remote Controlled Car Racetrack APN 640-091-010Contract No. C29461 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: AUTHORIZATION OF A ONE-YEAR LEASE AGREEMENT WITH DONNA PISZCZOR FOR THE OPERATION OF A REMOTE CONTROLLED CAR RACETRACK ON A VACANT CITY -OWNED PARCEL (APN# 640-091-010). SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works APPLICANT: Donna Piszczor d/b/a Palm Desert RC Raceway 78-865 Sonesta Way La Quinta, CA 92253 DATE: February 10, 2011 CONTENTS: Lease Agreement Vicinity Map Recommendation By Minute Motion, that the City Council authorize the Mayor to execute a one-year lease agreement (Contract No. C29461) with Donna Piszczor for the operation of a remote controlled car racetrack on a vacant city -owned parcel located on Painters Path (APN# 640-091-010). Background On January 14, 2010, the City Council authorized a one-year lease agreement for the operation of the Palm Desert RC Raceway on a vacant city -owned parcel on Painters Path west of Desert Crossing Shopping Center (see attached vicinity map). The operators of the facility have indicated that they were tremendously successful in their first year, and have made several improvements to the site including a new track layout, a driving stand that complies with ADA standards, a track timing system, and a P.A. system for conducting organized races. Palm Desert RC Raceway concluded its first year of operation with a fundraising event benefiting the Toys for Tots organization and is looking forward to continued success in 2011. Staff has worked closely with the applicant during the first year to ensure that the site was operated and maintained according to City standards. Staff has performed Staff Report Palm Desert RC Raceway February 10, 2011 Page 2 of 2 inspections during times when the track layout is changed and continues to regularly inspect the property. Operations of the facility generally occur in the evening hours and weekends. Staff has not received any complaints in regard to the facility, and recommends offering the applicant an additional one-year lease agreement for the site. Fiscal Analysis There are no costs incurred by the City except for minimal staff time for review and observation of the operation of the facility. The 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 an additional insured. Submitted By: Ryan Stendell Sen' anagement Analyst aul S. Gibson, Director of Finance John M. Wohlmuth, City Manager Mark Gre wood, P.E.\ Director dt Public Works CITY COUNCIL6&rjON APPROVED DENTED RECEIVED OTHER MEET', G A C AYES: I 7 NOES: 0 ABSENT: ABSTAIN: VERIFIED BY: Original on File with City rk's Office G:\PubWorks\Staff Reports\2011\February 10\04 Approve One -Year Lease for Remote Control Car Raceway\SR Lease for Remote Control Car Raceway. doc CONTRACT NO. C29461 LEASE AGREEMENT This Lease Agreement ("Lease") is made and entered into as of this 10th day of February, 2011, 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: 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. 2.1 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 Legal Effect. The terms, covenants and conditions of this Lease shall become legally binding on the Term Commencement Date. 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. CONTRACT NO. C29461 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. 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. 2 CONTRACT NO. C29461 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. 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. Assignment 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 performance by the other of any covenant, agreement, term 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. 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 -5 10 Fred Waring Drive Palm Desert, CA 92260 If to Tenant: Palm Desert Raceway CIO 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 Headings. 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 Governing Law. This Agreement shall be construed and governed by the laws of the State of California. 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 Jean Benson, Mayor ATTEST: Rachelle D. Klassen, City Clerk City of Palm Desert, California Approved as to Form: David J. Erwin City Attorney 0 CONTRACT NO. C29461 EXHIBIT "A" DESCRIPTION OF PREMISES APN No. 640-091-010, vacant property behind the Desert Crossings Shopping Center. See attached. W, I iti-11C4 ,• l7r` 4b AW 46 441f k V%A ry