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HomeMy WebLinkAboutSS3 - Sunset Ridge Park Update• CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Study Session Agenda Item No. SS3 September 14, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Stephen G. Badum 949 - 644 -3311 sbadum@city.newport-beach.ca.us SUBJECT: SUNSET RIDGE PARK UPDATE BACKGROUND: In 1966, Caltrans purchased approximately 15 acres of land, commonly known as "Caltrans West ", at the northwest corner of Coast Highway and Superior Avenue for the future Coast Freeway. Due to heavy local opposition, the freeway was never built. In • the mid1980s, the City of Newport Beach realigned Superior Avenue which created two parcels within Caltrans West (westerly and easterly parcels). Additionally, the City widened Coast Highway and created a public parking lot on a portion of the easterly parcel. The resulting residual parcel and the Westerly parcel of Caltrans West was deemed as excess right of way and was put on the market as surplus. In 1997, the City investigated the possibility of purchasing the property to create a park. An appraisal was performed that yielded an estimated market price of $2,530,000. The appraisal was updated in March 2000 and the valuation rose to $4,185,000. Due to rising land costs, City staff investigated alternative means to acquire the property for park purposes. It was discovered that Article XIX, Section 9 of the State Constitution provides for the transfer of surplus State property within the coastal zone, for consideration of the original cost paid to acquire the property, to the Department of Parks and Recreation for State Park purposes. With the help of Senator Ross Johnson, legislation (SB124) was passed that authorized the transfer of Caltrans West to the State Department of Parks and Recreation upon payment of $1,356,485 (believed to be the original purchase price) by the City of Newport Beach. The intent of the legislation was to transfer all of Caltrans West parcels to State Parks and allow the City to enter into a ground lease similar to the existing operating agreement where the City currently manages Corona del Mar State Beach. DISCUSSION: City Staff has been working with State Parks and Caltrans personnel to execute the • transfer and ground lease (formerly called operating agreements). Attached are draft SUBJECT. Sunset Ridge Park Update September 14, 2064 Page 2 copies of the two documents; Exhibit 1, Agreement for the Transfer of Jurisdiction of • State -owned Real Property and Exhibit 2, Ground Lease. In general, the Ground Lease entitles the City the exclusive right to finance, develop, operate and maintain a park facility for an initial term of ten years with provisions for extensions. The City will make a one time payment of $1,365,485 to the State and will be required to initiate development of the park within five years of the execution of the lease. In a recent letter dated August 16, 2004, Caltrans R/W Division has interpreted the language of SB124 as not including the easterly parcel of Caltrans West and has initiated a separate process to sell the easterly parcel as surplus land. The City has responded firmly that we believe that they do not have clear title to this parcel and that the intent of SB124 was to transfer all portions of the original Caltrans West parcel which includes both the westerly and easterly portions. Staff is continuing discussions with Caltrans staff to resolve this misunderstanding and, if necessary, will work with our legislative representatives to pass amended legislation. Submitted by, Step hen dum Public Works Director • E • STATE OF CALIFORNIA .1KUUNU LEASE COVERING PREMISES LOCATED AT Newport Beach, California APN: 424- 041 -08, -09, -]0, -11, -12; LESSEE'S FED. TAX LD. NO. OR-SOCIAL-SECURITY NO. DEPARTMENT OF PARKS AND RECREATION Lease No.: Pursuant to the provisions of Public Resources Code Section 5003.17, THIS LEASE, dated this day of , 2004, by and between the State of California, acting by and through the Department of Parks and Recreation, hereinafter called STATE, and the City of Newport Beach. a Municipal Corporation, hereinafter called LESSEE. WITNESSETH: DESCRIPTION 1. STATE does hereby ]case to LESSEE, and LESSEE hereby hires from STATE, upon the terms, agreements, and conditions hereinafter set forth, those certain premises as outlined on the attached plot plan designated as Exhibit "A ", and legal description designated as Exhibit "B" which is incorporated herein and by this reference made a part hereof and more particularly described as follows: Approximately 15.05 acres of property consisting of Assessor Parcel Numbers 424- 041 -08, -09, -10, -11, and -12, situated in the City of Newport Beach, County of Orange, State of California, hereinafter called Premises. TERM 2. The term of this Lease shall be for 10 years, commencing on October 1. 2004 and ending on September 30, 2014, with such rights of termination as arc hereinafter expressly set forth. EXTENSIONS OF 3. Upon one year's written notice from LESSEE and upon STATE's written consent as TERM granted pursuant to the STATE's sole discretion, this Lease may be extended for additional terms commencing on the first calendar day after the date set for expiration of this Lease. In exercising its discretion to extend the term of the Lease, the STATE may modify, add or delete terms and conditions of the original lease, including the addition of a requirement for monetary consideration for the use of the Premises, as the STATE may determine to be in the best interests of the STATE. CONSIDERATION 4. This Lease is a non - compensation lease with respect to regldar rental payments. Consideration for the Lease which is deemed to meet or exceed the fair market value of the property is LESSEE'S acceptance of all terms and conditions of the lease, including: (a) The requirement to assume and finance all development, operation and maintenance of the Premises; and (b) To provide the public benefits of'a city park as hereinafter provided; and (c) A one -time payment of S 1,365,485.00 to the STATE per the terns of' Scnate Bill 134 (Chapter 761 of the Statutes of 2001). USE 5. The Premises shall be used by LESSEE during the tern hereof fur the purpose of developing, operating and maintaining a city park providing multi -use sports and recreational facilities for the residents and visitors of the City of Newport Beach and surrounding communities, and for no other purposes whatsoever. EXHIBIT I PERFORMANCE BY 5. LESSEE shall have the sole responsibility for funding the development, operation Lessee and maintenance of the Premises pursuant to Section 5003.18 of the California Public • Resources Code. LESSEE shall develop the Premises for the purposes specified in Section 5003.18 within five (5) years of the execution of this Lease. Net profits, if any, resulting from LESSEE's operation of the Premises shall be used exclusively for the Premises. LESSEE shall keep all records pertaining to the development, operation and maintenance of the Premises for no less than five (5) years from the date of each record and shall make such records available to the State for inspection and/or copying upon the STATE'S request. The STATE shall have the right to declare the LESSEE in breach of its obligations under this Lease, terminate the Lease, and seek all applicable legal and contractual remedies in the event LESSEE fails to develop the Premises within this five (5) year period. TERMINATION 6. Termination of this Lease by either party to this Lease shall be for breach of the terms and conditions of the Lease. Upon termination, LESSEE shall immediately surrender possession of the Premises to the STATE and comply with all other applicable requirements mandated by this Lease. HOLDOVER 7. Any holding over after the expiration of the term or any extension thereof, with the written consent of STATE, expressed or implied, shall be deemed to be a tenancy only from month -to -month and shall otherwise be subject to the terms and conditions specified in this Lease. UTILITIES 8. No utilities, including but not limited to electricity or gas, will be provided by STATE and STATE assumes no liability for the existence or nonexistence of utilities. WATER. 9. It is understood and agreed between the parties hereto that STATE does not • STORN7w'ATER AND guarantee the availability, quality or quantity of water on the Premises. LESSEE shall IRRIGATION manage stormwater discharge on the Premises in a manner consistent with the best management practices as determined by the public regulatory entity or entities having jurisdiction over enforcement of water quality laws and regulations for the LESSEE's project. NOTICES 10. All notices or other communications required or permitted under this Lease shall be in writing, and shall be personally delivered (including by means of professional messenger service), or sent by overnight courier, or sent by registered or certified mail, postage prepaid, return receipt requested to the addresses set forth below, or sent by electronic facsimile to the telefacsimile numbers set forth below. All such notices or other communications shall be deemed received upon the earlier of: (a) if personally delivered or sent by overnight courier, the date of delivery to the address of the person to receive such notice; (b) if mailed as provided above, on the date of receipt or rejection; or (c) if given by electronic facsimile, when received by the other party if received Monday through Friday between 6:00 a.m. and 5:00 p.m. Pacific Standard Time so long as such day is not a state or federal holiday and otherwise on the next day provided that if the next day is Saturday, Sunday, or a state or federal holiday, such notice shall be effective on the following business day. fo the 1_ESSEE: City of Newport Beach c/o Director of Public Works 3300 Newport Boulevard Newport Beach, California Telephone: 949-644-3311 Facsimile: 949 - 644 -3020 To the STATE: Department of Parks and Recreation C/o District Superintendent, Orange Coast District 3030 Avenida del Presidente San Clemente, CA 92672 Telephone: 949 - 492 -0802 • Facsimile: 949- 492 -8459 With a copy provided to: Department of Parks and Recreation Clo Chief, Acquisition and Real Property Services One Capitol Mall, Suite 500 Sacramento, California 95814 Notice of change of address or telefacsimile number shall be given by written notice in the manner described in this section. LESSEE is obligated to notice all STATE offices listed above and the failure to provide notice to all STATE offices will be deemed to constitute a lack of notice. The address to which notices shall be mailed to either party may be changed by written notice. Nothing herein shall preclude the giving of any notice by personal service. ACTION BROUGHT 11. If action is brought by the STATE for any breach of the provisions of this Lease, or FOR BREACH to restrain the breach of any agreement contained herein, or for the recovery of possession of said Premises, or to protect any rights given to the STATE against the LESSEE (including the appeals of such action and any action or proceeding under title I 1 of the United States Code), and if STATE shall prevail in such action, LESSEE shall pay to the STATF such amount in attorneys' fees in said action as the court determines to be reasonable. HOLD 12. This Lease is made upon the express condition that the STATE is to be free from HARMLESS all liability and claims for damages by reason of any injury to any person or persons, including LESSEE, or property of any kind whatsoever and to whomsoever belonging, including LESSEE, from any cause or causes whatsoever while in, upon or in any way connected with the Premises during the term of this Lease or any occupancy hereunder except those arising out of the sole negligence of the STATE. LESSEE agrees to defend, indemnify and hold harmless STATE from all liability, loss. cost or obligation on account of or arising out of any such injury or loss, however occurring. LESSEE further agrees to provide necessary Worker's Compensation Insurance for all employees of LESSEE upon said Premises at the LESSEE's own cost and expense. INSURANCE 13. LESSEE shall furnish a certificate of insurance with the STATE's Lease Number indicated on the face of said certificate, issued to STATE with amounts of Commercial General Liability of at least $1,000,000 per occurrence and Fire Legal Liability of at least $500.000 naming the State of California, its officers, agents and employees as additional insureds. Said certificate of insurance shall be issued by and insurance company with a minimum Best Insurance Guide rating of A- or better. It is agreed that STATE shall not be liable for the payment of any premiums or assessments on the insurance coverage required by this paragraph. The certificate of insurance shall provide that the insurer will not cancel LESSEE's coverage without thirty (30) days prior written notice to STATE. LESSEE agrees that the insurance herein provided for shall be in effect at all times during the term of this Lease. all extensions thereof, hold -over periods or any other occupancy of the Premises by LESSEE. In the event said insurance coverage expires at any time or times during the term of this Lease, LESSFF, agrees to provide STATE at least thirty (30) days prior to said expiration date, a new certificate of insurance evidencing insurance coverage as provided for herein for not less than one (1) year. In the event LESSPE fails to keep in effect at all times insurance coverage as herein provided, STATE may, in addition to any other remedies it may have, terminate this Lease upon the occurrence of such event. If LESSEE is self - insured, LESSEE shall provide STATE with written acknowledgment • of this fact at the time of the execution of this Lease. LESSEE shall annually thereafter, on the anniversary of the date of execution of this Lease, provide STATE with a written acknowledgment of the continuation of its self- insured status. If, at any time after the execution of this Lease, LESSEE abandons its self insured status, LESSEE shall immediately notify STATE of this fact and shall comply with the terns and conditions of Paragraph 13 of this Lease. LOSSES 14. STATE will not be responsible for losses or damage to personal property, equipment or materials of LESSEE and/or any of LESSEE's agents, employees, officers, contractors, invitees. All losses shall be reported to STATE immediately upon discovery. rvov- 15. In the performance of this Lease, LESSEE shall not discriminate, harass, or allow DISCRIMINATION harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability (including HIV and AIDS), mental disability, medical condition, age (over 40), marital status, sex, sexual orientation, or use of family care leave. LESSEE shall insure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. LESSEE shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a -f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Lease by reference and made a part hereof as if set forth in full. LESSEE shall give written notice of its obligations under this clause to any labor organizations with which they have a collective bargaining or other agreement. Further, LESSEE shall post in conspicuous places available to employees and applicants for employment, notices to be provided by the STATE setting forth the provisions of this Fair Employment Practices Section. (Government Code, Section 12920 - 12994). Remedies for willful violations: (a) The STATE may determine a willful violation of the Fair Employment Practices provision to have occurred upon receipt of a final judgment having that effect from a court in an action to which LESSEE was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and determined that the LESSEE has violated the Fair Employment Practices Act and has issued an order pursuant to the appropriate provisions of the Government Code. (b) The STATE shall have the right to terminate this Lease and any loss or damage sustained by the STATE by reason thereof shall be home and paid for by the LESSEE. DEBT LIABILITY 16. The STATE will not be liable for any debts or claims that arise from operation of DISCLAIMER this Lease. PARTNERSHIP 17. LESSEE and any and all agents of LESSEE shall act in an independent capacity DISCLAIMER and not as officers or employees of the STATE. Nothing herein contained shall be construed as constructing the parties herein as partners, agents. or a joint powers entity. Neither party shall have the right or power to bind the other to agreement or any other liability at law. SUBLETTING 18. LESSEE shall not assign this Lease in any event and shall not sublet the Premises or any part thereof and will not permit the use of the Premises by anyone other than the LESSEE without prior written consent of the STATE which consent shall be given at the State's sole discretion. TARES .AND 19. LESSEE agrees to pay all lawful taxes, assessments, or charges, which at any time ASSESSMENTS may be levied upon the Premises or any interest in this agreement. It is understood that any sublease or concession to a private entity that may be permitted by this Lease may create a possessory interest subject to property taxation and LESSEE or such sublessee or concessionaire may be subject to the payment of property taxes levied on such interest. COMPLIANCE 20. LESSEE shall, at its sole cost and expense, comply with all the laws and WITH LAWS, requirements of all Municipal. County, State, and Federal authorities now in force or which may hereafter be in force pertaining to the Premises and use of the Premises as provided by this Lease. CONDITION OF 21. LESSEE accepts the Premises "AS IS, WHERE IS, WITH ALL FAULTS" PREMISES without representation or warranty. LESSEE is experienced in real property transactions and acknowledges that it has the ability to investigate and evaluate the risks, if any, associated with the receipt of the Premises and further acknowledges that it has had adequate time to properly and completely review and analyze the condition of the Premises to the extent it deems necessary or appropriate. LESSEE, hereby accepts the Premises in its existing condition and acknowledges that any preparation of the Premises for LESSEE's use shall be the sole responsibility, obligation and expense of LESSEE. LESSEE aurces on the last day of the term, or the earlier termination of this Lease, to surrender up to STATE the Premises, with any appurtenances or improvements therein (as required or allowed by this Lease), in the same condition as when received, reasonable use and wear thereof and damage by acts of God excepted. MAINTAINING 22. LESSEE shall, at LESSEE's sole cost and expense, be responsible for the PREMISES development, maintenance and operation of all Improvements permitted to be constructed upon the Premises by LESSEE in furtherance of the purposes of this Lease. LESSEE shall keep the Improvements in good, clean and safe condition and shall comply with all laws and regulations regarding the maintenance standards for such Improvements, PROTECTION OF 23. LESSEE shall not commit or suffer to be committed any waste or nuisance upon PREMISES the Premises. PLANNING AND 24. Except otherwise agreed to by STATE, LESSEE shall be solely responsible for all DEVELOPMENT planning and development of the facilities. buildings. playing fields, and infrastructure (the Improvements) on the Premises contemplated by the purposes for which the Premises may be developed under this Lease. LESSEE agrees to consult and collaborate with STATE in the planning for development_ construction and operation of the city park. LESSEE'S interest under this Lease will be subject to all easements, access rights, licenses and permits in favor of or as granted by the STATE or its predecessors in interest. IMPROVEMENTS 25. Development of the Premises or construction of Improvements thereon shall not be permitted to begin until STATE (including Department of General Services, as necessary) has approved the complete plans and specifications for the project, said plans to be prepared by an architect, civil engineer, or other professional, that is duly qualified and registered by the State of California. Once LESSEE has provided STATE said plans and specifications, STATE shall have a thirty (30) day minimum review period before granting LESSEE approval or disapproval of project in writing. LESSEE shall, at the time of the request, specify if LESSEE desires to retain ownership and /or possession of the alteration, addition, or Improvement. Review and approval of all plans and specifications for the Improvements by STATE shall be for concurrence and compatibility with the collaborative planning process contemplated and provided for herein above. Any approvals shall not relieve LESSEE from its responsibility to plan, design, construct and operate facilities in a safe manner according to all laws, codes, regulations or other standards applicable to such facilities. CEQA 26. LESSEE acknowledges that environmental documents under the California Environmental Quality Act (CEQA) may be required for this Lease and for any of LESSEE'S anticipated future improvements to the ]cased Premises. DISPOSITION OF 27. Upon termination of this Lease for any cause. LESSEE shall use its best efforts to IMPROVEMENTS remove any and all personal equipment and Improvements of the LESSEE and restore the entire Premises to its condition prior to the execution of this Lease, except, however, the STATE may approve, in writing, any deviation from this requirement or may direct LESSEE as to its intentions with respect to the Improvements. Any Improvements remaining at the Premises at the expiration or termination of this Lease shall become the property of the State. EIRE AND 28. STATE will not keep Improvements which are constructed or installed by LESSEE CASUALTY under the provisions of this Lease insured against fire or casualty, and LESSEE will make DAMAGES no claim of any nature against STATE by reason of any damage to the facilities or property of LESSEE in the event of damage or destruction by fire or other cause, arising other than from or out of the negligence or willful misconduct of agents or employees of the STATE in the course of their employment. HAZARDOUS 29. The following activities are prohibited on the Premises: SUBSTANCES (a) Use or storage of any hazardous substance or hazardous chemical as those terms are used in CERCLA (42 USC 9601.14) or SARA (42 USC 11021(e)) or any similar state law, or any pesticide, oil, petroleum product or fuel (except only materials packaged and purchased for consumer use in containers not to exceed one (1) gallon, or fuel in a vehicle fuel tank). Use of pesticides should be minimized, and will be applied only by authorized personnel and in accordance with all applicable laws, regulations, and label instructions. Aerial application is prohibited. (b) Accumulation, storage, treatment, or disposal of any waste material (excepting only temporary storage. not to exceed fourteen (14) days), or non- hazardous solid refuse produced from activities on the Property for pick up by a municipal or licensed commercial refuse service, and lawful use of sanitary sewers (if any) for domestic sewage, (c) Manufacturing, maintenance of equipment or vehicles, or use, installation or construction of vessels, tanks, (stationery or mobile), dikes, sumps, or ponds. or any activity for which a license or permit is required from any government agency for (1) transportation, storage, treatment, or disposal of any waste, and (2) discharge of any pollutant, including but not limited to discharge to air, water, or a sewer system. u • • Any spill, release or discharge of a hazardous material to the air. soil. surface water, or groundwater will be immediately reported to the STATE as well as to appropriate • government agencies, and shall be promptly and fully cleaned up and the Premises (including soils and surface water and groundwater) restored to its original condition. LESSEE agrees to comply with the requirements and orders, if any, of the California Department of Toxic Substances Control with respect to the Premises. Should LESSEE desire to use pesticides on the area (either herbicides, rodenticidcs, or insecticides), all applicable Environmental Protection Agency (EPA) standards must be met and prior approval must be received from the STATE (as specified below) as not all EPA approved pesticides may be used on wildlife areas. No aerial applications of pesticides will be permitted. No dumping of hazardous wastes (Petroleum) shall be permitted. LESSEE will fill out Form M -SRO and submit it to the area manager at least seven (7) days prior to application of pesticides. STATE reserves the right to disapprove the use of any pesticide. LESSEE shall obtain all County. State. or Federal permits required. including restricted pesticide use and burning permits. and comply with all conditions of those permits. LESSEE shall submit to the area manager a copy of all permits. NEST CONTROL. 30. All non - routine pest control activities (defined as activities not normally used for the maintenance of ball Gelds and supporting structures), chemical or non - chemical, shall be approved by the STATE prior to any action performed by the LESSEE. LESSEE's employees, agents, or contractors. The LESSEE, or a pest control contractor acting on bchalf of the LESSEE. must submit a pest control recommendation on a form approved by the STATE to the Orange Coast District Superintendent for approval. 'file STATE shall have fourteen (14) days to approve or deny the request. LESSEE, or the pest control contractor acting on behalf of the LESSEE. must submit a report of completed work for • each pest management action to the District Superintendent no later than seven (7) days after performance of the work. LESSEE and all of LESSEE's employees, agents, or contractors shall prevent the inadvertent transport of pest species into or out of the STATE's park unit. LESSEE shall have a written training program for LESSEE's employees who handle pesticides. This program shall comply with California Code of Regulations Title 3, Section 6724. Any pest control contractor hired by the LESSEE shall comply with all California laws and regulations. RIGHT 31. During continuance in force of this Lease. there shall be and is hereby expressly OF ENTRY reserved to STATE and to any of its agencies. contractors, agents, employees, representatives, or licensees. the right at any and all times, and any and all places, to temporarily enter upon said Premises for survey. inspection or other lawful STA'L'E purposes. EASEMENTS AND 32. This Lease is subject to all existing easements and rights of way as may affect the RIGH IS OF NA AN' Premises at the time of commencement of the Lease. MINERAL RIGHTS 33. LESSEE agrees not to interfere in any way with the interests of any person or persons that may presently (or in the fixture) hold oil, gas, or other mineral interests if any under said Premises, nor shall LESSEE interfere in any way with the rights of ingress and egress of said interest holders. RELOCATION 34. LESSEE acknowledges that LESSEE, its employees. contractors. subordinates and assigns are not entitled to any Relocation Payment or Relocation Advisory Assistance due to their occupancy of the Premises. In the event subleasing is permitted, LESSEE shall incorporate the above paragraph into each sublease. Failure to do so will obligate LESSEE for damages and costs resulting from claims for relocation payment by sublessees. DEFAULT 35. The occurrence of any of the following shall constitute a material breach and • default of this Lease by LESSEE: (a) LESSEE's failure to develop the Premises within five (5) years of the date of execution of this Lease. (b) The abandonment or vacation of the Premises by LESSEE. Failure to occupy and operate the Premises for thirty (30) consecutive days following the mailing of written notice from STATE to LESSEE calling attention to the abandonment shall be deemed an abandonment or vacation. (c) A failure by LESSEE to observe and perform any other provision of this Lease to be observed or performed by LESSEE, where such failure continues for thirty (30) days after the date of written notice thereof by STATE to LESSEE: provided, however, that if the nature of such default is such that it cannot be reasonably cured within such thirty (30) day period, LESSEE shall not be deemed to be in default if LESSEE shall within such period commence such cure and thereafter diligently prosecute the same to completion. (d) The making by LESSEE of any genera] assignment or general arrangement for the benefit of creditors, and the appointment of a trustee or receiver to take possession of substantially all of LESSEE's assets where possession is not restored to LESSEE within forty -five (45) days, or the attachment, execution or other judicial seizure of substantially a]] of LESSEE's assets where such seizure is not discharged within thirty (30) days. • 35.1 STATE'S Remedies In the event of any material default or breach by LESSEE, STATE may at any time thereafter, without limiting STATE in the exercise of any right or remedy at law or in equity which STATE may have by reason of such default or breach, immediately terminate this Lease and LESSEE shall immediately surrender possession of the Premises to STATE. In such event, STATE shall be entitled to recover from LESSEE all damages incurred by STATE by reason of LESSEE's default including, but not limited to, the following: (a) any amount necessary to compensate STATE for all the detriment proximately caused by LESSEE's failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom, including attorney's fees and costs; plus (b) such other amounts in addition to or in lieu of the foregoing as may he permitted from time to time by applicable state law: and (c) the costs of all reasonable repairs, alterations or modifications to the Premises which the STATE, in its sole discretion. deems reasonable or necessary as a result of LESSEE possession, including removal of the Improvements and restoration of the property as required on termination by other provisions of this Lease. FAILURE TO 36. In the event of the failure, neglect, or refusal of LESSEE to do, or perform work, or PERFORM any part thereof, or any act or thing in this Lease provided to be done and performed by LESSEE, STATE shall, at its sole option, have the right to do and perform the same, and LESSEE hereby covenants and agrees to pay STATE the cost thereof on demand. WAIVER 37. If the STATE waives the performance of any tern, covenant or condition contained in this Lease, such waiver shall not be deemed to be a waiver of that or any • subsequent tern, covenant or condition. Failure by STATE to enforce any of the terms, covenants or conditions of this Lease for any length of time shall not be deemed to waive or decrease STATE'S right to insist thereafter upon strict performance by LESSEE. Waiver by STATE of any tern, covenant or condition contained in this Lease may only be made by a written document property signed by an authorized STATE representative. SEVERABILITY 38. If any terra, covenant, condition or provision of this Lease or application thereof shall, to any extent, be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law. AMERICANS WITH 39. Lessee shall comply with all federal requirements established under 28 Code of DISABILITY ACT Regulations, Part 36, Americans with Disabilities Act, in order to make improvements and programs accessible to all participants and to provide equally effective communications. 'The requirements of CCR Title 24, State Building Code relative to Access Law Compliance, and Americans with Disabilities Act (ADA), and Uniform Federal Access Standards (UFAS), must be included in the design and development of all facilities constructed under this Lease and all Sub - Leases, including the Lease- Financing. All new construction work shall be planned to comply with the above mentioned standards. SUPERSEDURE 40. This Lease supersedes and voids any prior license. lease or agreement 6envicen the STATE and the LESSEE identified in this Lease with regard to the Premises. • VOLUNTARY 41. Permittee accepts this Lease, and the Premises, in its as -is condition and has made EXECUTION such investigation of the facts pertaining to this Lease and all the matters pertaining thereto as it deems necessary. WARRANTY OF 42. The undersigned represents that it has the authority to, and does, bind the person or AUTHORITY entity on whose behalf and for whom it is signing this Lease and the attendant documents provided for herein, and this agreement and said additional documents arc, accordingly, binding on said person or entity. MUTUAL CONSENT 43. Notwithstanding any provision contained herein to the contrary, this Lease may be altered, changed, or amended by mutual consent of the parties hereto in writing. BINDING 44. The terms of this Lease and covenants and agreements herein contained shall apply to and shall bind the agents, employees, officers, contractors and licensees of the parties hereto. ASSIGNABILITY 45. 'This Lease is non - assignable. CHOICE OF LAw 46. This Lease will be govemed and construed by the laws of the State of California. SECTION 47. All section headings contained herein are for convenience of reference only, and HEADINGS are not intended to define or limit the scope of any provisions of this Lease. ENTIRE 48. This Lease and all attached Exhibits constitute the entire agreement between .AGREEMENT STATE and LESSEE. No prior written or prior. contemporaneous or subsequent oral promises or representations shall be binding. ESSENCE OF TIME 49. Time is of the essence for each and all of the provisions, covenants and conditions of this agreement. IN WITNESS WHEREOF, this Lease has been executed by the parties hereto as of the Executed Date first . written hereinabov e. STATE OF CALIFORNIA: LESSEE: DEPARTMENT OF PARKS AND RECREATION CITY OF NEWPORT BEACH By: By: • u 10 S Agreement for the Transfer of Jurisdiction of State -Owned Real Property THIS AGREEMENT is entered into this day of 2004, by and between the California Department of Parks and Recreation ( "State Parks"), and the California Department of Transportation ( "Caltrans "), with the approval of the Director of General Services. WITNESSETH WHEREAS, Section 9 of Article XIX of the California Constitution allows for the transfer of Caltrans -owned property in the Coastal Zone from Caltrans to State Parks when the property will be used for state park purposes, and WHEREAS, Senate Bill 124 (Johnson), which was passed by the State Legislature and signed into law by the Governor as Chapter 761 of the Statutes of 2001, directs that the Caltrans shall transfer the approximately 15.05 acres known as "Caltrans West" ( "Subject Property") to State Parks in accordance with the Constitution, and • WHEREAS, Government Code §14673 also pertains to the transfer of jurisdiction between state agencies; and WHEREAS, the Subject Property is situated in the City of Newport Beach, County of Orange, State of California more particularly described in Exhibit A attached hereto by this reference and made a part hereof, and WHEREAS, the City of Newport Beach shall pay to State Parks, which shall then pay to the State Highway Account, consideration of one million three hundred fifty-six thousand four hundred eighty-five dollars ($1,356,485) for Subject Property, and WHEREAS, the City of Newport Beach and State Parks shall, consistent with SB 124, execute an agreement that requires the city to accept and perform all of the responsibilities relating to, and to assume the liability for, the construction, operation, and maintenance of the park and its improvements. NOW, THEREFORE, be it resolved that the parties hereto agree as follows: EXHIBIT 2 Pursuant to the provisions of Chapter 761 of the Statutes of 2001 and Section 14673 of the Government Code of the State of California, Caltrans hereby transfers unto State Parks and State Parks hereby accepts the jurisdiction of that real property known as Orange County Assessor Parcel numbers 424 - 041 -08, 424 - 041 -09, 424 - 041 -10, 424- 041-11, and 424 - 041 -12, and more particularly described in attached Exhibit `A" attached hereto and by this reference made a part hereof, and The consideration for this transfer of jurisdiction is one million three hundred fifty-six thousand four hundred eighty-five dollars ($1,356,485.00); and The use and operation of the property shall be in accordance with that agreement between State Parks and the City of Newport Beach dated _ , 2004 wherein the City of Newport Beach has agreed to assume the liability for the construction, operation, and maintenance of the park and its improvements. This agreement will be effective upon approval by the Director of General Services. DEPARTMENT OF PARKS AND DEPARTMENT OF TRANSPORTATION • RECREATION By: -- Title: Date: APPROVED: DIRECTOR OF GENERAL SERVICES 0 0 Title: Date: Date: __ 0 0 • STATE OF CALIFORNIA - BUSINESS. TRANSPORTATION AND HOUSING AGENCY ARNOLD SCHWARZENEGGER, Govemor DEPARTMENT OF TRANSPORTATION SOUTHERN RIGHT OF WAY REGION District 07 RIW Field Office 120 South Spring Street Los Angeles, CA 90012 -3606 August 16, 2004 12- ORA -1- PM 19.7 DD: 040766 -01 -02 City Hall City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 Gentleman: The Department of Transportation hereby offers to sell this surplus land shown on the attached map in accordance with the provisions of Sections 54220 through 54227 of the Government Code. Please notify the undersigned within sixty (60) days of your receipt of this notice if you intend to purchase this surplus land. Multiple Offers In the event our Department receives offers for the purchases of this surplus land from more than one entity, we shall give first priority to the entity which agrees to use the site for housing for persons and families of low or moderate income. except that first priority shall be given to an entity which agrees to use the site for park or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land is designated for park and recreational use in the local general plan and will be developed for the purpose. (Gov. Code Section 54227). If we do not hear from your agency within (601 days of your receipt of this letter, the surplus land will be disposed of in another manner. Than Mai Vo Right of Way Agent Regional Excess Land (2 1 ;1897-1803 Encls. SOUTHERN RIGHT OF WAY REGION 21073 PATHFINDER, SUITE 100 DIAMOND BAR, CA 91167 PHONE: (909) 468 -1500 Fax'. (909) 468 -1500 District 08 R,lu' Field Office 464 A'. Fourth St, San Bernardino, C9 92401 -1400 Phone. 1909) 383 -6 211 Fax:(000) 383 -6877 District 12 Rill' Field Office 3337 A1iche Drive. Ste. CN 380 Irvine, C9 OYJ1 -1692 Phony (714) 724- 2000 Far 0714) 724 -2411 No SCALE SITE PACIFI srArE ROO E Ni`Nw,j c CITY n m o � a i E„ DIST JCOUNTYI RTE 12 1 ORA I \ \ \ I I 1 I I STATE RETAINS ACCESS RIGHTS OCENi Lfl LINE 'HEM" SBPf PIOR .VE. $Pf0. EINSipNO� 9}- OY.1ilOi5 66A. - - -' NEW RT SUPERIOR -- A Q UE .q BIBI] SO. Pi P.M. 19.7 NM'LY LINE SOBE, PER BEACH STATE OF CALIFORNIA - - DEPARTMENT OF TRANSPORTATION - - DISTRICT 12 PLAT ACCOMPANYING SCALE: N.T.S. DIRECTOR'S DEED DD 040766-01-02 DRWN: CWS CHKD: DF DATE: 12 120100 REF. MAPS F,1710-2 7-R, T l n 'f 5; � ED, � J p\ M\ >.A -R wR.ms] PER I \ \ \ I I 1 I I STATE RETAINS ACCESS RIGHTS OCENi Lfl LINE 'HEM" SBPf PIOR .VE. $Pf0. EINSipNO� 9}- OY.1ilOi5 66A. - - -' NEW RT SUPERIOR -- A Q UE .q BIBI] SO. Pi P.M. 19.7 NM'LY LINE SOBE, PER BEACH STATE OF CALIFORNIA - - DEPARTMENT OF TRANSPORTATION - - DISTRICT 12 PLAT ACCOMPANYING SCALE: N.T.S. DIRECTOR'S DEED DD 040766-01-02 DRWN: CWS CHKD: DF DATE: 12 120100 REF. MAPS F,1710-2 CITY OF L._ COUNTY RTE P-bk COUNTY OF 'NEWPORT 1 12 1 ORA I 119.7 = ORANGE BEAC PARCELS:040766 v PACFTC –_ 040767 u� m �1 10 0� HWY O O r > VICINITY MAP U Z LL O r (Il�li CITY OF NEWPORT BEACH z I 7 WESTERLY PORTION �I ,I C 2 35 STORM DRAIN /J Q0 v o q�OFTG`cS�Ts S`4 Slo B'Drclncca —� i - \qsr STREET AREA= 60,639 SO FT 65 248 Sq Ft Slope 8 Drainage ESlIl LSO AC SUPERIOR AVE EASTERLY ,yyt, PORTION NJ L,JTATE OF CALIFORNIA -- DEPARTMENT OF TRANSPORTATION -- DISTRICT 12 T ACCC4WAN VIi 7 SCALE: NONE D/RECTOR S DEED DD 0407667-01-01 lnpwm cwvn-Qc h'6: �/': F 1710 -2 .EK � DATE. 8- 28.-91 M� w �I. 1 it COUNTY OF U = ORANGE P co —O( �(0 rr- 0 0 r3 U Z lL 0 CITY OF DIST I COUNTY RTE I P}.t 'NEW PORT 12 DRQ I 19.7 BEAC PARCELS: 040766 040767 (DD 040766- 01 -02) HWY VICINITY MAP F-- I 0 Iilll I � I� \ 3.i STORM DRA;N 3 Se \ 15 A� CITY OF NEWPORT NITSTERLY PORTION BEACH ' 65 248 Sq F1 Slope 8 Drolnag E3m—T ` 1.50 AC To City of Nox orf Beac SUPERIOR AVE _ �" 40 7 8 � 4175GZ. \AST STREET AREA= 32,310 SO FT EASTERLY PORTION ■ 1= L ELL II STATE OF CALIFORNIA -- DEPARTMENT OF TRANSPORTATION -- DISTRICT 1 2 , , CLAi AcCnWANYWG SCALE: NONE D /RECTORS DEED DD 040766 -01 02 DRWN: EK CtiKD:RC DATE: 0-28.- °1 REF: A-fAP: F 1710••2 ' a'l? � � § > 9 q �Tt � > t _ \ � .. � 3 m ~ / \ t A y 7 � ® # 2 e o � 75 % Senate Bill No. 124 CHAPTER 761 An act relating; to state property. [ Approved by Govemor October 11. 2001. Filed with Secretary of State October 12,'_'001.1 LEGISLATIVE C(MNSEL'S DIGEST SB 124, Johnson. Department of Transportation: property transfer: Department of Parks and Recreation: City of Newport Beach. (1) The California Constitution authorizes the Legislature, by statute, with respect to state surplus property located in the coastal zone and acquired by the expenditure of certain tax revenues, to transfer the property, for a consideration at least equal to the acquisition cost paid by the state to acquire the property, to the Department of Parks and Recreation for state park purposes. This bill would require the Department of Transportation to transfer a certain parcel of land in the City of Newport Beach to the Department of Parks and Rec- eation, for use as a park upon payment of consideration of 81366.486 by the City of Newport Beach. The bill would require the funds to be deposited in the State Highway Account. The bill would make the transfer of the property contingent on the execution of an agreement between the Department of Parks and Recreation and the City of Newport Beach that requires the city to perform all of the responsibilities related to, and to assume the liability for. the construction, operation, and maintenance of the park and its improvements. (2) The bill v,ould declare that, due to the special circumstances concerning the Deparnnent of Transportation property in the City of Newport Beach, a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution, and the enactment of a special statute is therefore necessary. (3 ) To the extent that the bill would impose new duties on the City of Newport Beach, :he bill would impose a state - mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory prov:sions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. vs F 0 • • Ch. 761 —2— • The people of the State of California do enact as follows: SECTION 1. (a) The Department of Transportation shall transfer to the Department of Parks and Recreation, upon payment by the City of Newport Beach of consideration of one million three hundred fifty -six thousand four hundred eighty -five dollars ($1,356,455), which is at least equal to the acquisition cost paid by the state, pursuant to Section 9 of Article X1X of the California Constitution, the state -owned real property described in subdivision (b). for state park purposes. The funds paid pursuant to this section shall be deposited in the State Highway Account. (b) The property to be transferred pursuant to subdivision (al consists of approximately 15.05 acres, located in the coastal zone of the City of Newport Beach, adjacent to Superior Avenue and Pacific Coast Highwav, identified by Director's Deed #040766 -01 -01 and knotcn as "Caltrans West." SEC. 2. Execution of the property transfer specified in Section 1 of this act shall be contingent upon the execution of an agreement bet" cen the Department of Parks and Recreation and the City of Newport Beach that requires the city to accept and perform all of the responsibilities relating to, and to assume the liability for, the construction. operation. and maintenance of the park and its improvements. SEC. 3. Due to the unique circumstances concerning the Department of Transportation propem. in the City of Newport Beach. the Legislature finds and declares that a general statute cannot be made applicable within the meaning of subdivision (b) of Section 16 of Article IV of the California Constitution, and that this special statute is necessary. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article X111 B of the California Constitution because the only costs that may be incurred by a local agency or school district are the result of a program for which legislative authority was requested by that local agency- or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article X111 B of the California Constiartion. O as F