HomeMy WebLinkAboutRD362 Lease Agreement Extension to Family YMCA of the DesertPALM DESERT REDEVELOPMENT AGENCY
OFFICE OF THE CITY MANAGER
STAFF REPORT
REQUEST: Extend the term of the Lease Agreement between the Palm Desert
Redevelopment Agency and Family YMCA of the Desert to May 1, 2006
DATE: May 12, 2005
SUBMITTED BY: Carlos L. Ortega, City Manager
Recommendation: By Minute Motion, that the Redevelopment Agency extend the term
of the Lease Agreement dated May 11, 1989, between the Palm Desert Redevelopment
Agency, as Landlord, and Family YMCA of the Desert, as Tenant, to May 1, 2006.
Background:
In 1989, the Redevelopment Agency and the YMCA entered into an agreement which
provided for the following:
► The Agency would construct a building which it would lease to the YMCA for an initial
ten year term with two twenty-five year extension options.
► The initial term was to begin upon the issuance of a Certificate of Occupancy. The
Certificate of Occupancy was issued March 22, 1991, making the expiration date of
the initial term March 22, 2001.
► At the end of the initial ten year term, the YMCA could request the first of the two
twenty-five year options provided the YMCA had expanded the facility by 5,000
square feet. There is a similar 5,000 square foot expansion requirement on the
second twenty-five year extension option.
► As consideration for the lease, the YMCA would convey two areas of property on the
Civic Center site to the Redevelopment Agency and would expand its services to the
benefit of the general public.
Staff Report: Extension of YMCA Lease
May 12, 2005 Page Two
In 1999, the YMCA requested an extension of the original initial ten year term, which was
agreed to by the Agency, and the Agency and the YMCA entered into an amendment of the
lease dated February 11, 1999, which provided for a term of fifteen years with a
commencement date of May 1, 1990, extending the initial term to May 1, 2005. In addition,
the amendment confirmed that the option to extend could be exercised within such fifteen
year term period. The amendment did not address nor waive any other conditions of the
lease, including those pertaining to the exercise of the option.
In the most recent letter addressed to the City Manager from the YMCA, the YMCA is
requesting a lease extension of three years.
As a result of discussions between the City and the YMCA regarding the requested
extension and other options that the YMCA wants to consider regarding the expansion of
the current facilities or consideration of other available sites for expanded YMCA facilities
and programs, the recommendation is for a one-year extension. After one year, the YMCA
feels it would be in a better position to provide the City with answers on its plans to serve the
community in the future.
Submitted By:
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CARLOS L. 9KEGA
City Manager
Approval:
PAUL GIBSON
Finance Director
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We build strong kids, CITY OF PALM DESERT
strong families, strong communities. CITY MANAGER
April 15, 2005
Carlos Ortega
City Manager, City of Palm Desert
73510 Fred Waring Dr.
Palm Desert, Ca. 92260
Dear Carlos:
Thank you for your letter of March 10. To follow up, a small group of our YMCA
executive board members met on April 5 to formulate a response. During our meeting, it
became clear that there was a need to clarify some points of reference with regard to both
YMCA and the City of Palm Desert concerning the YMCA's future plans, our lease, and our
existing programs.
Through ongoing meetings and discussions with all the major cities in the valley, we have
tried to keep all interested parties apprised of our intentions and needs. Recently, questions
and statements have surfaced which indicate that we need to present more information to the
City of Palm Desert.
Our YMCA has had a long history of partnership with the City of Palm Desert, and,
together, we have done great things for the youth and families of our community. We want
to continue our existing programs as well as develop new programs to better serve the Palm
Desert area and, ultimately, its residents.
The YMCA has no plans to leave its Palm Desert location or to reduce the level of
programming in the City of Palm Desert. Our plans for future capital expansion are still
undecided.
We would propose that, for now, the City consider allowing us a 3-year lease extension.
This extra time will give both the city (with its new Parks and Recreation service manager
hired) and the YMCA time to plan what will best serve this community.
FAMILY YMCA OF THE DESERT
43-930 San Pablo Ave., Palm Desert, CA 92260
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(760) 341-9622 Fax (760) 779-9651
United Way To put judeo-Christian principles into practice through programs that
of the Desert build healthy spirit, mind and body for all.
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We would also suggest that the city appoint a task force of two Council members and
appropriate City staff to meet with members of the YMCA board and myself. The objective
would be to discuss the YMCA's direction, resolve any misunderstanding, answer any and
all questions, and find a solution to the lease issue.
We believe that this partnership is key to our efforts to adapt to changes in our local
community, and we value our relationship with you. Thank you for your collaboration, and
I look forward to hearing from you.
Sincerely,
ROB BALLEW
Executive Director and C.E.O.
Family YMCA of the Desert