HomeMy WebLinkAbout04/25/1983 Item #F-2bCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
April 25, 1983
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT:
I
Background
C - 109
(3 9)
CITY COUNCIL
AGENDA ITE11 F -2(b)
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
APR 2 51983
On April 28, 1958, the City Council authorized execution of a
lease agreement between the City (sublessee), the Elks Lodge
(lessee), and the Griffith Company (lessor). The agreement
authorized the City to use a portion of the "Elks Club" property
at Via Oporto and Central for metered parking (four spaces) in
connection with the larger City -owned lot at this location as well
as for egress from the City lot. The agreement established a term
commencing on May 1, 1958 and terminating on April 30, 1983, and
provided that the City would pay to the Elks Club 12% of the meter
revenue from the City lot or $120.00 per year, whichever was greater,
as a consideration for use of the portion of the lot on the Flks
property.
Attachment 1 is a copy of the sublease agreement and Attachment
2 is a map showing the spatial relationships between the City
parking lot, the Elks Club building area and the area under_ lease.
It should be noted that the Griffith Company is no longer a party
to the lease since the Elks Club has purchased the companv's
interest.
Proposed Lease Renewal
Attachment 3 is a letter from the Elks Club proposing an extension of
the existing lease agreement on a month -to -month basis. As noted
previously in this staff report, the agreement is due to expire on
April 30, 1983 and the proposed extension would permit an oppor-
tunity for discussing the terms of a longer term lease agreement.
The other terms and conditions of the existing aareement would
remain in effect under the month -to -month extension.
Recommendation
It is recommended that the Mayor and City Clerk be authorized to
execute a month -to -month extension of the Elks Club lease. Staff
TO: MAYOR AND CITY COUNCIL - Page Two
will continue to discuss the matter of a longer term agreement
with the Elks,
QR0136En L. WYNN
City Manager
RLW:GJB:jmb
Attachments
ATTACF24ENT 1
3 4/25 53 (6)
1j SUBLEASE
2
3 THIS AGSEEi,IENT OF SUBLEASE made and entered into this
4 28th day of April , 1958, at Newport Beach, California,
5 by and between the CITY OF NEWPORT BEACH, a municipal corporation,
6 hereinafter referred to,as "SUBLESSEE ", LODGE BUILDING C01MRATI04,
7 a corporation, hereinafter referred to as "LESSEE ", and GRIFFITH
8 COMPANY, a corporation, hereinafter referred to as "LESSOR ",
9 WITNESSEPH:
10 WHEREAS, Lessor is the owner of Lot 1126, of Tract No.
11 907, Lido Mainland; and ,
12 WHEREAS, Lessor and Lessee entered into a lease under
13 which Lessee leased said lot from August 1, 1952, to July 31, .
14 2007, from Lessor; and
15, - WHEREAS, Sublessee owns certain land at the northerly <
16 end of Central Avenue and intends to develop said land as a
17 parking lot; and
i8 WHEREAS, a portion of the lot ovned by Lessor and leased
19 by Lessee lies between Sublessee's land and Via Oporto; and
20 WHEREAS, it would be convenient and useful for Sublessee.
21 to have possession of a portion of the land under lease to Lessee
22 to use in connection with the parking lot for parking and for
23 ingress and egress to said parking lot;.
24 NOW, THEREFORE, the parties agree as follows:
25 1.- Description. Sublessee leases from Lessee a portion
26 of the land under lease from Lessor described as follows:
27 A portion of Lot 1126, as shown upon a map of Tract
28 No. 907, recorded In 'Useellaneous Map Book 28,
29 Pages 25 to 36 inclusive, records of Orange County,
30 California, and more particularly described as
31 follows:
32
1.
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I Beginning at the most northerly corner of said Lot
2 1126; thence southwesterly along a northwesterly line
3 of said lot a distance of 135.52 feet to an angle point,
4 said angle point being the true point of beginning;
5 thence southwesterly along the southwesterly prolonga-
6 tion of said northwesterly line to an intersection with
7 the southwesterly line of said lot; thence northwesterly
8 along said southwesterly line a distance of 51.74 feet,
9 more or less to the beginning of a tangent curve, concave
10 to the northeast and having a radius of 10 feet; thence
11 northerly along said curve and along the westerly line
12 of said lot an are distance of 15.71 feet; thence tan -
13 gent to last mentioned curve and northerly along the
14 westerly line of said lot a distance of 15 feet to a
15 corner of said lot; thence southeasterly along a north-
1 16 easterly line of said lot to the true point of beginning.
17 2. Term. The term of the sublease shall be from May 1,
18 1958, to April 30, 1983.
19 3. Rental. Sublessee will install and intends to
20 maintain parking meters on the leased premises and on its land at
21 the northerly end of Central Avenue being developed with said
22 leased premises as a parking lot. During the time meters are main -
23 tained on said lot, Sublessee shall pay to Lessee as rental twelve
24 per cent (12%) of the gross revenue received from all meters
25 installed in the area bounded by Via Oporto, the center line of
26 Central Avenue, Newport Bay and LesaeO s building adjoining the
27 proposed parking lot, or One Hundred Twenty Dollars ($120.00),per
28 year, whichever is greater. Should the meters be removed after
29 they have been in operation for more than one (1) year, the annual
30 rental shall be twelve per cent (120) of the amount of gross
31 revenue from the meters in the area herein described during the
32 twelve.(12) .complete months immediately preceding the time the
2.
1 meters are removed or One Hundred Twenty Dollars ($120.00), which -
2 ever is greater. In any other event the annual rental shall be
3 One Hundred Twenty Dollars ($120.00). Rental shall be paid to
4 Lessee quarterly or monthly at the convenience of Sublessee. As
5 additional rental Lessee shall be permitted to have exclusive use
6 of all that portion of the parking lot not in any street right of
7 way for any six (6) days each year or portion of a year, provided
8 that Lessee shall give Sublessee notice of the days selected at
9 least thirty (30) days in advance.
10 4. Use and Maintenance. The Sublessee.s'nall use the
11 property only as a parking lot or for ingress or egress from its
12 parking lot at that location; provided, however, that the propert.
13 may be used for any facilities necessary or convenient for.the
14 efficient operation of the parking lot. The property shall be
15 maintained by Sublessee with respect to lighting, surfacing and
16 cleaning in as good condition as other municipal parking lots are
17 maintained by Sublessee.
1s 5. Termination. The sublease shall terminate upon the
19 termination of the lease between Lessor and Lessee for any cause.
20 The sublease shall also terminate if said Sublessee discontinues
21 using it in connection with the parking lot. If the lease between
22 Lessor and Lessee is canceled, Subleases nay continue to pay
23 Lessee the rent herein provided as long as Sublessee is in posses -
24 lion of the premises; provided, however, that Sublessee may in an;
25 event remain in possession of the premises for ninety (90) days
26 after receiving notice of cancelation of the lease. The parties
27 recognize that Lessee by leasing the land to Sublessee is reducing
28 the area it has available for parking in connection with its presei
29 building. It is the intention of the parties that Lessee not be
30 penalized with respect to the present or future use of its buildin;
31 as a result of said reduction in area. Lessee should, therefore,
32 receive credit for parking space equivalent to the area leased
3.
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hereunder in connection with any application for a permit in the
consideration of.which parking space is a factor. It is agreed tha
�i Sublessee is not hereby bound to grant any such permit; provided,
however, if Sublessee should fail in the consideration of any
application for any such permit to give credit for said parking
space at the request of Lessee, Lessee may terminate this sublease
by giving thirty (30) days' notice of termination. Upon terminatio
of this sublease, Sublessee shall remove all facilities except
paving placed upon the premises for use in connection with the
parking lot, and shall repair any holes or depressions caused as
a result of removing any such facilities,
6, Successors and Assigns. The terms of this sublease
shall inure to the benefit of and be binding upon the successors
and assigns of the Lessor, Lessee and Sublessee.
IN WITNESS WHEREOF the parties hereto have executed this
sublease on the day and year hereinabove written.
_ LODGE ULDIN COR PORATION L [K By
LESSEE
CITY NEWPORT EAC F
By .
mayor
Margery Schrouder, City Clerk
�i Clem
SUBLESSEE
GRIFFITyj CPAA�`
rest— de-n--
a-* Secrecy
LESSOR
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Newport Harbor Elks Lodge 1767
BENEVOLENT AND PROTECTIVE ORDER OF ELKS j
3456 VIA OPORTO, NEWPORT BEACH, CALIFORNIA 92663 �r
TELFPHONE:673 -6110
l_.
April 18, 1983
I.Ir Gerry J Bolint
Asst, to City 'tanager
3300 Newport Boulevard
Newport Beach, California 92660
Subject: Sublease of a portion of Lot 1126
Dear NLr Bolint,
ATTACHMENT 3
Oil OF
As per our conversation of April 11th and April 15th, 1983
regarding the sublease for ingress and egress and parking
in the above mention lot between the City of Newport Beach
and the Newport Harbor Elks Lodge # 1767 B.P.O.E., the Newport
Harbor Elks # 1767 B.P.O.E, is willing to extend the sublease
of a portion of our lot to the City of Newport Beach for
said parking scheduled-to expire April 30th, 1983.
This extention is to be for a Deriod of 30 days at a time
until such time as a new and fair and equitable agreement
can be made between the City of Newport Beach and Newport
Harbor Elks # 1767 B.P.O.E, for a long term agreement.
If for any reason the City of Newport Beach cannot accept
the 30 day extention periods, please notify me, and we
will explore other avenue for agreement. Please assure
the City that we want to work out an agreement that will
benifit both the City and ourselves.
Until I hear from you
Respectfully,
NEWPORT HARBOR ELKS # 1767 B.P.O.E.
Robert F Dearborn 11
Exalted Puler
RFD11 /sd
RESOLUTION NO. 83 -40
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT.BEACH AUTHORIZING THE MAYOR & CITY
CLERK TO EXECUTE AN AMENDMENT TO A LEASE
PURSUANT TO WHICH CITY UTILIZES A PORTION OF
THE ELKS CLUB PROPERTY FOR PARKING AND
VEHICULAR ACCESS PURPOSES
WHEREAS, the City of Newport Beach, the Griffith
Company and the Elks Lodge Building Corporation are parties to a
SubLease, dated April 28, 1958, which grants to the City of
Newport Beach rights to use certain property, at the northerly
end of.Central Avenue, for parking and vehicular access purposes;
and
WHEREAS, the Elks Club has purchased the interests of
the Griffith Company to the original Lease and is now the only
party, other than the City, which has an interest in the Lease of
the City property referenced above; and
WHEREAS, the Lease referred to above expires on
April 30, 1983, and the Elks Club is reluctant to execute a. long-
term Lease renewal until it has had a chance to further negotiate
the terms of such a renewal; and
WHEREAS, the present SubLease does not clearly
establish that the.City would have the right to continue to use
the leased property on a,month -to -month basis, subsequent to
expiration of the Lease• and
WHEREAS, the parties to the Lease wish to amend.the
provisions thereof, to clarify the rights.and duties of the
parties subsequent to the termination of the Lease and prior to
the execution of any long -term renewal. thereof;
NOW, THEREFORE, BE IT RESOLVED by.the City Council of
the City of Newport Beach that the Mayor and City Clerk are
hereby authorized to execute an amendment to the SubLease,
pursuant to which the City is authorized to utilize the leased
property for parking and vehicular access purposes, a copy of
which amendment is attached hereto as Exhibit "A ", and which
a 0
amendment provides for the right, on the part of the City, to
utilize the leased property, on a month -to -month basis, subject
to the payment of rent as provided in the original agreement.
ADOPTED this 25th day of April , 1983.
City Clerk
RSP /Elks
.3
0 0
AMENDMENT TO LEASE
WHEREAS, the City of Newport Beach, the Griffith
Company and the Elks Lodge Building Corporation are parties to a
SubLease dated April 28, 1958, which grants to the Elks Club the
rights to use certain City property at the northerly end of
Central Avenue for parking and vehicular access purposes; and
WHEREAS, the Elks Club has purchased the interests of
the Griffith Company to the original Lease, and is now the only
party, other than the City, which has an interest in the Lease of
the City property referenced above; and
WHEREAS, the Lease referred to above expires on
April 30, 1983, and the Elks Club is reluctant to execute a long-
term Lease renewal until it has had a chance to further negotiate
the terms of such a renewal; and
WHEREAS, the present SubLease does not clearly
establish that the City would have the right to continue to use
the leased property, on a month -to -month basis, subsequent to
termination of the Lease; and
WHEREAS, the parties to the Lease wish to amend the
provisions thereof, to clarify the rights and duties of the party
subsequent to the termination of the Lease and prior to the
execution of any long -term renewal thereof.
.y
1. The terms of the original Lease, between the City
of Newport Beach and the Griffith Company, dated August 1, 1952,
and the original SubLease between the City of Newport Beach,
Lodge Building Corporation and the Griffith Company, dated April
281 1958, are, except to the extent that they are inconsistent
with the provisions of paragraph 2 of this amendment, repeated
herein as though fully set forth at length.
2. Should the City of Newport BEach remain in
possession of the demised premises after the expiration of this
Lease, a new tenancy, from month -to- month, shall be created which
shall be subject to all of the terms and conditions of this
Lease, but shall be terminable by thirty (30) days' written
notice, served, by either party, on the other party, in the
manner prescribed by Section 1946 of the Civil Code of the State
of California. In the event that a month -to -month tenancy is
created by virtue of the holdover by the sublessee, the
consideration to be paid shall be one - twelfth (1 /12th) of the
amount paid for the twelve (12) month period immediately
preceeding the date of termination of the Lease (April 30, 1983),
with payment of said sum to be made on or before June 10, 1983,
and on or before the 10th of each month thereafter, for so long
as the City of Newport Beach is in possession by virtue of the
provisions of this paragraph..
IN WITNESS WHEREOF the parties hereto have executed
this agreement on the day and year first above written.
LODGE BUILDING CORPORATION
By
By
CITY OF NEWPORT BEACH
By
Mayor
ATTEST:
City Clerk
RSP /Elks