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HomeMy WebLinkAboutC-2528 - Pacific View Drive, 3101 - Lease Agreement (for Lincoln School Gymnasium and Athletic Fields)LEASE THIS LEASE, between the NEWPORT -MESA UNIFIED SCHOOL DISTRICT, ("DISTRICT") and the CITY OF NEWPORT BEACH ("CITY") is entered into this day of , 1997. 1. DISTRICT leases to CITY a portion of the real property and improvements commonly referred to as the Lincoln Intermediate School located at 3101 Pacific View Drive, Corona Del Mar, California (Leased Property). The Leased Property consists of the gymnasium, lighted play fields, and the public restrooms, excluding the locker rooms. The Leased Property is more particularly described in Attachment 1. 2. The term of this Lease shall be for a period of ten (10) years beginning on the 1st day of July, 1997, with two automatic five year extensions, ending respectively on the 30th day of June 2012, and on the 30th day of June 2017. 3. Subject to the discount provided in this Section, CITY agrees to pay DISTRICT the sum of thirty two thousand four hundred dollars ($32,400) as the annual lease payment, which shall be adjusted pursuant to Section 5. The lease payment for the first year and for the succeeding four years will be discounted by fifty percent (50%) in consideration of the extensive renovations previously made by the CITY to the Leased Property including installation of the new gymnasium flooring and the 1997/98 planned refurbishment of the restrooms and installation of new exterior doors on the gymnasium. Lease Payments will be made in two equal installments due on July 1 and January 1. 4. In the event CITY determines that certain improvements to the Leased Property should be made to accommodate potential users, CITY may submit requests to District for approval to make the improvements and reduce the Lease Payment in an amount equal to the cost of the improvements. Approval of the improvements and discount from the annual lease for that year shall not be unreasonably withheld. 5. The Lease Payment shall be increased or decreased on July 1, 1998 and each twelve months thereafter, to reflect changes in the Consumer Price Index (for all Urban Consumers for Los Angeles, Anaheim and Riverside) for the preceding twelve month period for which CPI changes are available, but not to exceed an increase of 5% in any given year. 6. Lease Payment subsequent to the initial ten (10) year term of this lease shall be the lower of (1) the rental rate for use of DISTRICT property negotiated by the City of Costa Mesa with the DISTRICT; or (2) the rate determined to be "fair market value" for the use of public property as determined by a disinterested real estate appraiser mutually agreed upon by the CITY and the DISTRICT. 7. In the event the DISTRICT requires the use of the Leased Property, or any portion thereof, for DISTRICT programs, the DISTRICT will provide the CITY with one hundred eighty (180) days notice of its intent to modify this agreement and the DISTRICT will use its best efforts to assist CITY in obtaining alternate DISTRICT facilities suitable for CITY recreational programs during the period the Leased Property is unavailable to the CITY. In the event DISTRICT is unable to provide CITY with alternate facilities, CITY and DISTRICT shall negotiate modifications to this Agreement relative to the Lease Payments and the Leased Property. 8. CITY and DISTRICT each have the right to terminate this Agreement, without cause, on one year written notice. 9. The CITY shall not sublet all or a portion of the Leased Property without the express written consent of DISTRICT. CITY shall not make any alterations or additions to the Leased Property without the express written consent of DISTRICT. Any alterations of additions to premises shall be at the sole cost of CITY subject to the provisions of Section 4. 10. CITY shall pay DISTRICT fifty percent (50%) of any net income derived from use of the Leased Property which, during any calendar year, exceeds the annual Lease Payment. Net income shall be calculated by deducting from the gross revenue the City's costs of conducting programs on or in the Leased Property. 11. CITY shall, during the term of this lease, maintain in good order, condition and repair the Leased Property. The CITY's obligation includes, without limitation, the repair of windows, roofs, field lighting system, painting, and blacktop around the gymnasium. CITY shall also reimburse DISTRICT for any damage to the Leased Property proximately caused by the CITY, or its employees, officials, or invitees. 12. CITY shall, during the term of this Agreement, comply with the scheduling parameters identified in DISTRICT Rule and Regulation 7410, paragraph 7.0, which states that youth activities conducted for NMUSD students will have preference over adult activities. The priority of scheduling shall be as follows: 1. Regular school programs, including summer school activities. 2. CITY sponsored and/or school connected youth groups, e.g., Harbor Area Baseball Program 3. Other youth activities 4. CITY adult programs 5. Other adult programs 13. CITY shall, during the term of the Lease, keep the interior of each structure on the Leased Property, and every part thereof in good order, condition and repair as well as maintain the fields in a safe condition. If CITY fails to perform its obligations pursuant to this section, DISTRICT may, at its option, after ten (10) days written notice to CITY, and CITY's failure to perform, perform the necessary repair or maintenance and the cost thereof shall become due and payable by CITY to DISTRICT upon demand. 14. On the last day of the term hereof, or on any earlier termination, CITY shall surrender the premises to DISTRICT in the same condition as when received, ordinary wear and tear excepted. 15. CITY shall, at its own cost and expense, provide all janitorial supplies and services to the Leased Property, which shall include, without limitation, the replacement of restroom supplies, light bulbs and fluorescent tubes. CITY shall maintain the two restroom facilities in a clean and sanitary manner, and lock the rooms at 11:00 P.M. each evening, Monday through Friday. The District will open the restrooms at 7:00 A.M. each morning, Monday through Friday. Restrooms shall be clean and ready for daily use at the 7:00 A.M. To accommodate weekend activities scheduled by CITY, the CITY shall open the restrooms on Saturday and Sunday mornings, and lock them on each evening. Restrooms shall be clean and ready for daily use at the 7:00 A.M. on Monday. 16. CITY shall, at its own cost and expense, maintain the landscaping and turf areas on the Leased Property in an attractive and safe condition and, to the extent feasible, free from rodent infestation. In addition, CITY will maintain, and repair as necessary, the field sprinkler systems and timers in the Leased Property. 17. CITY shall cause all necessary utility services for the fields to be placed in its name and shall pay all charges therefore during the term of this Agreement. The City agrees to reimburse to the District annually the fair amount of the cost of utilities related to CITY's use of the gymnasium on the Leased Property. 18. All notices pursuant to this Lease shall be deemed given when personally delivered or deposited in the United States mail, first class postage prepaid, and addressed as follows: DISTRICT Attention: Superintendent of Schools Business Office Newport -Mesa Unified School District P.O. Box 1368 Newport Beach, CA. 92663 CITY Attention: City Manager City of Newport Beach 3300 Newport Boulevard, P.O. Box 1768 Newport Beach, CA. 92658-8915 19. CITY agrees that no activity or business will be conducted or carried on in violation of any regulations, order of law, statute, bylaw or ordinance of any governmental agency having jurisdiction. Any modifications or additions to the Leased Property shall revert to sole ownership of DISTRICT upon the expiration or termination of this Agreement. 20. In the event of any breach of this Lease by CITY, DISTRICT shall notify CITY in writing of such breach and CITY shall have sixty (60) days in which to cure said breach. If such breach is not cured within the specified time, this Lease shall be terminated; in which event CITY agrees to immediately surrender possession of the premises and to pay to the DISTRICT, in addition to any other remedy DISTRICT may have, all damages DISTRICT may incur by reason of its defaults, including the cost of recovering the premises. 21. If either party hereto shall be delayed or prevented from the performance of any act required by this Agreement by reason of acts of God, restrictive governmental laws or regulations, or other cause beyond the control of the party obligated (financial inability excepted), performance of such acts shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for the period of the delay. However, nothing in this Section shall excuse either party from the prompt payment of any rental or other charges required except as may be expressly provided elsewhere in this Agreement. 22. This Agreement sets forth the entire understanding between CITY and DISTRICT and any modifications must be in the form of a written amendment signed by the party to be charged. 23. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 24. The failure of either party to insist upon strict performance of any of the terms, conditions or covenants in this Agreement shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions or covenants herein contained. 25. DISTRICT recognizes that the use of tobacco products represents a health and safety hazard which can have serious consequences for the tobacco user and non -user alike. It is the intent of the DISTRICT that all District buildings, property and vehicles remain tobacco -free. Therefore, the CITY agrees that the District facilities included in this Lease shall be designated and posted tobacco -free. 26. In the event of a partial destruction of, or damage to, the Leased Property or the Leased Property has been declared unsafe or unfit for occupancy, by a public agency authorized to make such declaration, for any reason other than CITY's use or occupation, DISTRICT shall, as soon as practicable, make such repairs as are necessary to restore the Leased Property to the condition which existed prior to the destruction or damage and/or make such repairs as are necessary to make the Leased Property safe and fit for occupancy, provided , however, DISTRICT shall be entitled to terminate this Agreement in the event DISTRICT reasonably determines that repairs are infeasible. CITY shall be entitled to an abatement of Lease Payments for the period that CITY's use and occupancy of the Leased Property was adversely affected by the destruction, damage, restoration and/or repair. 27. DISTRICT shall have the right at all reasonable times to inspect the Leased Property to determine if CITY is in compliance with the provisions of this Agreement. 28. As additional consideration for this Agreement, the CITY will use its best efforts to assist the DISTRICT relative to the sale and reuse of property declared surplus by the DISTRICT subject to the following: a. DISTRICT has offered to sell or lease the property to the CITY for the minimum consideration required by law; and b. CITY has, through formal action of the City Council, declined the offer within 60 days after the offer was served on the CITY 29. This Agreement is entered into pursuant to the authority of the Education Code of the State of California (beginning with Section 39300). IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first written above. Date: 6/24 DISTRICT: Secretary, Board of Education Newport -Mesa Unified School District CITY: City of Newport Beach City Manager AMENDMENT NO. 2 LEASE AGREEMENT The Lease Agreement between the Newport -Mesa Unified School District and the City of Newport Beach for a portion of the fields at Lincoln School shall be amended as follows: The following section is hereby added to the Lease Agreement: 22. DISTRICT recognizes that the use of tobacco products represents a health and safety hazard which can have serious consequences for the tobacco -user and non -user alike. It is the intent of DISTRICT that all District buildings, property, and vehicles remain tobacco -free. Therefore, the Board of Education directs that all District buildings, property, and vehicles shall be designated and posted tobacco -free effective July 1, 1995. All other terms and conditions to remain the same. Date: j ne 27;_ 1995 Date: August 15, 1995 NEWPORT -MESA UNIFIED SCHOOL DISTRI C.M. Bernd, Superintendent CITY OF NEWPORT BEACH 3620 NEWPORT -MESA UNIFIED SCHOOL DISTRICT RULE AND REGULATION TOBACCO -FRET: ENVIRONMENT 1. Tobacco use is not permitted in District -owned or leased buildings, on District pgoperty, or in District vehicles at any time. It is the responsibility of the Superintendent and managers at the District level, and principals at all school sites, to ensure that all students and employees have a tobacco - free environment. 2. All District -owned or leased buildings, District property, and District vehicles shall be designated and posted as tobacco -free. 3. All District -owned or leased buildings shall have posted at major entrances and in main meeting rooms, signs designating that smoking tobacco use is prohibited. 4. The Drug, Alcohol, Tobacco Education (D.A.T.E.) office shall provide students and employees information with a list of clinics and community resources which offer assistance to individuals who wish to stop using tobacco products. 5. The District shall provide information and services relating to smoking to pregnant students or pregnant minors who are enrolled in the District. Such services shall include referral to pre -natal services, individualized counseling, and incentives to maintain a healthy lifestyle. 6. District employees shall demonstrate conduct that is consistent with the "no -use" message given to students to discourage use of tobacco products. 7. The District shall provide for instruction regarding the effects of tobacco use on the human body and shall take steps to discourage students from smoking or using any tobacco product. B. The Rule and Regulation regarding a tobacco -free environment becomes effective July 1, 1995. Rule and Regulation Adopted: 6/23/92 Revised and Readopted: 1/24/95 LINCOLN ATHLETIC FACILITY Project Scope This project will initiate and complete redevelopment of a former intermediate school site into a multi -functional activity and athletic complex. The facility is operated by the City of Newport Beach through a Lease Agreement with the Newport -Mesa Unified School District. The improvements will include three specific elements: Basic Site Improvements, including irrigation, drainage, parking and utilities; Athletic Field Improvements, including the installation of new backstops, fencing, infields and turf areas; and Indoor Facility Improve- ments, including the replacement of the gymnasium floor and remodeling the locker facilities into multi-purpose activity rooms. The redevelopment of the Lincoln Athletic Facility will provide the City with a 12 acre complex capable of pro- gramming at least five major youth/adult sports and a variety of indoor activities throughout the year. Specific Elements Basic Site Improvements: 1. Replace present irrigation system. 2. Remove deteriorated asphalt and replace with turf for an expansion of the athletic field. 3. Provide grading, landscaping, utilities and drainage improvements. 4. Remove present game courts and repair balance of the asphalt to accommodate an expansion of the parking lot. Athletic Field Improvements: 1. Install new backstops, fencing and dugouts at three baseball/softball lighted diamonds. 2. Install infields for three lighted baseball/softball diamonds. 3. Improve two existing lighted soccer/football fields (60 x 120 yards). 4. Install one new soccer/football field within present track and field area (60 x 120 yards). 5. Install soccer practice areas. Indoor Facility Improvements: 1. Replace the existing gymnasium floor with an air suspension hardwood floor. 2. Remodel two existing locker facilities into activity rooms and storage areas. 3. Install new fixtures, flooring and plumbing improvements to existing restroom facilities. Amendment No. 1 LEASE AGREEMENT Lincoln Intermediate School This Amendment No. 1 dated October 14, 1986, is a part of the City of Newport Beach Lease Agreement of the Lincoln Intermediate School dated January 28, 1986 and extends Section 4 to read: The District agrees that termination will only occur if the site is reopened as a school and will provide the City with continued use for community recreation purposes after school, weekends and school vacation periods for a period of ten (10) years subject to terms and conditions of Section 7, Priority of Use. JDated: October 14, 1986 NEWPORT -MESA UNIFIED SCHOOL DISTRICT CIT' By. John W. Nicoll, Superintendent Attest: J'e C4 -t-\7 C' erg 1 2 LEASE AGREEMENT 3 THIS LEASE, between the NEWPORT -MESA UNIFIED SCHOOL DISTRICT, 4 hereinafter referred to as "DISTRICT," and the CITY OF NEWPORT BEACH, hereinafter referred to as "CITY," is entered into this 10th day of 5 December, 1985. 6 1. DISTRICT leases to CITY portions of that certain real property referred to as the Lincoln Intermediate School located at 3101 Pacific View Drive, Corona del Mar, California. These portions consist of the gymnasium 7 and lighted play fields. (See Attachment No. 1). 8 2. The term of this Lease shall be for a period of ten (10) years beginning the 10th day of December, 1985 and ending the 9th day of 9 December, 1995. 10 3. CITY agrees to pay DISTRICT the sum of $12,000 annually. Payment shall be due December 10, 1985 and each December 10 thereafter during the 11 life of this Agreement. 4. This Agreement is subject to review by both parties every two 12 years with the first review period in 1987. If mutually agreed, this Agreement may be extended for an additional two years beyond the stated 13 expiration date of December, 1995. This process creates an "evergreen" 10 -year lease, subject to biennual mutual agreement. 14 Nothing in this lease, however, precludes either party from taking steps to cancel the Agreement by serving the other party formal 15 notice of official action taken either by the Newport -Mesa Unified School District Board of Education or the Council of the City of Newport 16 Beach terminating the Lease Agreement two calendar years from the date of such official action. 17 5. The CITY shall not assign or sublet all or any part of the premises described without the consent in writing of DISTRICT. Tenant shall 18 not make any alterations or additions to the premises without permission of DISTRICT. Any alterations or additions to premises shall be at the sole 19 cost of CITY. In CITY use of the facilities or in subletting with prior permission of the Board of Education, CITY shall not- derive revenue in 20 excess of the annual rent. If CITY derives income in excess of the annual rent, fifty (50) percent of all such revenues shall be due and payable to 21 the DISTRICT. 6. CITY shall, during the term of this lease, keep in good order, 22 condition and repair the facilities described including the repair of windows, roofs, field lighting system, painting, blacktop around the 23 facility, including service systems to facilities leased. CITY shall also pay DISTRICT for all repairs necessitated by CITY or CITY's invitees misuse 24 of the leased premises. 7. CITY shall, during the term of the Lease, follow as closely as possible in scheduling the facilities the DISTRICT'S Priority of Use as i i 3; spelled out in DISTRICT Rule and Regulation 7410, paragraph 7.0, which state 4 that youth activities conducted for N-MUSD students will have preference over adult activities. The priority of scheduling shall be as follows: 5 1. Regular school programs, including summer school activities 6 2. CITY sponsored and/or school connected youth groups, e.g., Harbor Area Baseball Program 7 3. Other youth activities 4. CITY adult programs 8 5. Other adult programs 9 8. CITY, shall, during the term of the Lease, keep the interior of the premises and every part thereof in good order, condition and repair as 10 well as maintain the fields in a safe condition. 11 I If CITY fails to perform its obligations under this section, DISTRICT may, at its option, after ten (10) days written notice to CITY, 12 enter upon the premises and put the same in good order, condition and repair and the cost thereof shall become due and payable as additional 3.3 rent by CITY to DISTRICT upon demand. 24! On the last day of the term hereof, or on any sooner termination, CITY shall surrender the premises to DISTRICT in the same condition as when 25! received, that is, broom clean, ordinary wear and tear excepted. 3.6 I CITY shall, at its own cost and expense, provide all janitorial supplies and services to the leased premises, which shall include but not be 3.7 limited to the replacement of restroom supplies, lightbulbs and flourescent tubes. 18 CITY shall, at its own cost and expense, maintain the landscaping 19i and turf areas for which it is responsible in an attractive and safe condition. In addition, CITY will maintain the field sprinkler systems and 20 I associated clocks in an operable condition. CITY also agrees to keep the playing fields under their control free from rodent infestation. 21 9. CITY agrees, at its own expense to maintain in force during the 22 term of this Lease, full comprehensive public liability insurance, insuring against all claims for injuries to person or persons or property occurring 23 in, upon or about the leased premises. Said policy shall have limits of not less than $5,000,000 for injuries to person or persons, and not less than 24 $1,000,000 for property damage. CITY shall supply DISTRICT with a Certificate of Insurance of such policy or other documentation satisfactory 25 to DISTRICT. Such policy or statement shall show DISTRICT immunity with respect to claims arising out of CITY's occupancy and use of the leased 26 premises. 27 DISTRICT shall carry the necessary policy, or policies, covering the hazards of fire, vandalism, malicious mischief and "extended coverage" 28 in an amount of at least ninety (90) percent of replacement cost - contents excepted. CITY shall, as additional lease payments, reimburse DISTRICT the premium cost of said insurance. I Revised 10/23/85 -2- _J I I t 2I i 3i 10. CITY shall cause all necessary utility services to be placed in its name and shall pay all charges therefore during the term of this Lease. 4I 11. All notices pursuant to this Lease shall be addressed as set forth 5 below, or as either party may hereafter designate by written notice, and may be sent through the United States mail to: 6 DISTRICT Business Office 7 Newport -Mesa Unified School District P. 0. Box 1368 g Newport Beach, CA 92663 9 CITY City of Newport Beach 3300 Newport Boulevard 10 Newport Beach, CA 92663 11 I 12. CITY agrees that no improvements shall be erected, placed upon, I operated or maintained with the demised premises without prior written 3.2' consent of DISTRICT, nor shall any business be conducted or carried on in violation of any regulations, order of law, statute, bylaw or ordinance of 3.3 any governmental agency having jurisdiction. Any modifications or additions to the leased premises shall revert to sole ownership of DISTRICT at the 14 I conclusion of Lease. 15 ; 13. In the event of any breach of this Lease by CITY, DISTRICT shall notify CITY in writing of such breach and CITY shall have sixty (60) days 3.6 in which to cure said breach. If such breach is not cured within the specified time, this Lease shall be terminated; in which event CITY agrees 17 to immediately surrender possession of the premises and to pay to the I DISTRICT, in addition to any other remedy DISTRICT may have, all damages 181 DISTRICT may incur by reason of its defaults, including the cost of recover- ing the premises. 191 14. If either party hereto shall be delayed or prevented from the 20 I performance of any act required hereunder by reason of acts of God, restrictive governmental laws or regulations, or other cause beyond the 21 control of the party obligated (financial inability excepted), performance of such acts shall be excused for the period of the delay; and the period 22 for the performance of any such act shall be extended for the period of the delay. However, nothing in this clause shall excuse either party from the 23 prompt payment of any rental or other charges required except as may be 24 expressly provided elsewhere in this Lease. 15. This Lease sets forth the entire Agreement between CITY and $5 DISTRICT and any modifications must be in the form of a written amendment. 26 16. If any term, covenant, condition or provision of this Lease is held by a court of competent jurisdiction to be invalid, void or 27 unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated 28 thereby. I17. The failure of either party to insist upon strict performance of I ,I Revised 10/23/85 -3- 8 9 10 11 12 13 14 15 16 17 281 19 20 21 22 23 24 25 26 27 28 any of the terms, conditions or covenants in this Lease shall not be deemed a waiver of any right or remedy for a subsequent breach or default of the terms, conditions or covenants herein contained. 18. In the event of: partial destruction of or damage to leased premises or the leased premises being declared unsafe or unfit for occupancy, by a public authority authorized to make such declaration, for any reason other than CITY's act or use of occupation, except as otherwise provided; DISTRICT shall, as soon as practicable, make such repairs as are necessary to restore the leased premises to the condition which existed prior to destruction or damage and/or make such repairs as are necessary to make the leased premises safe and fit for occupancy. In lieu of necessary repairs, DISTRICT shall be entitled to terminate Lease in the event DISTRICT determines that repairs are not feasible. CITY shall, however, be entitled to a reduction of rent during any period its use and occupancy of the leased premises are adversely affected by reason of destruction, damage, restoration and/or subsequent repair required thereby. Such reduction shall be proportionate to the interference with CITY's ordinary use of the leased premises. 19. DISTRICT shall have the right at all reasonable times to inspect the leased premises to determine if the provisions of this Lease are being complied with. 20. CITY has inspected the premises which are the subject of this Lease and agrees that, as of the date of the execution of this Lease, they are acceptable. 21. This Lease is entered into pursuant to the authority of the Education Code of the State of California (beginning with Section 3936). IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first written above. Date: January 28, 1986 DISTRICT: retary, Board of Education port -Mesa Unified School District City of ffewport Revised 10/23/85 -4-