HomeMy WebLinkAboutItem No. 13 Alleyway Lease Agrmnt APN 374-174-013 Thomas Martin, DBA The WreckText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-227
Agenda Date: 6/13/2017 Status: Consent AgendaVersion: 1
File Type: AgreementIn Control: City Council
Agenda Number: 13)
Page 1 City of Lake Elsinore Printed on 6/8/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Date:June 13, 2017
Subject:Alleyway Lease Agreement – APN 374-174-013 with Thomas Anthony
Martin, DBA The Wreck
Recommendation
Authorize the City Manager to execute the Lease Agreement, in the amount of $1.00 per year
for a term of 99 years, in such final form as approved by the City Attorney.
Background
In 1991, the City leased property (APN 374-174-016) located on Peck Street just west of Main
Street. Pursuant to the 1991 lease, the City improved APN 374-174-016 and the adjacent City
owned properties (APNs 374-174-014 and 015) as a public parking lot to serve the City’s
historic downtown. In March 2017, the City acquired fee title to APN 374-174-016.
Under the 1991 lease, the City also leased the alleyway (APN 374-174-013) generally located
between Peck Street and Graham Avenue. As depicted on the attached Vicinity Map, the
alleyway property currently provides access from Graham Avenue to the City’s public parking
lot. The City desires to continue to lease the alleyway parcel.
Discussion
Under the terms of the proposed Lease Agreement, the alleyway parcel will be used for public
ingress and egress to the City’s public parking lot. The City will pay one dollar ($1.00) per year
due July 1, 2017 and every July 1 thereafter during the term. The term of the lease is ninety
nine (99) years, subject to the right of either the City or the property owner to terminate upon
sixty (60) days’ prior written notice. During the term of the lease, the City will continue to
maintain the alleyway parcel.
Fiscal Impact
The lease payment of $1.00 annually is nominal. The City has maintained the alleyway parcel
since 1991 and the ongoing maintenance costs are included in the City’s budget for street
maintenance/paving.
Exhibits
A -Lease Agreement
B -Vicinity Map
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Lease Agreement
This Lease Agreement (“Lease”) is entered into as of June 13, 2017 (the “Effective
Date”) by and between Thomas Anthony Martin, DBA as The Wreck (“Martin”) and the
City of Lake Elsinore, a municipal corporation organized and existing under the laws of
the State of California (the “City”) (Martin and the City are sometimes collectively referred
to herein as the “Parties.”).
RECITALS
A.Martin is the owner of certain real property (APN 374-174-013) generally
located between Peck Street and Graham Avenue just west of Main Street in historic
downtown Lake Elsinore (the “Property”). As depicted on Exhibit “A”, attached hereto
and incorporated herein by reference, the Property currently provides access from
Graham Avenue to APNs 374-174-014, 015 and 016 which are currently used for public
parking purposes (the “Parking Lot”).
B.Pursuant to that certain prior Lease Agreement dated January 8, 1991,
Martin leased the Property and the APN 374-174-016 to the City for public parking and
City improved the Parking Lot.
C.The Parties entered into a Standstill Agreement on January 21, 2016,
pursuant to which the Parties agreed to extend the term of the 1991 Lease Agreement
during negotiations concerning the long-term disposition of the Property and APN
374-174-016.
D.The Parties now desire to enter into this Lease for the continued use of the
Property as a means of public ingress and egress to the Parking Lot.
NOW, THEREFORE, with reference to the foregoing Recitals and in
consideration of mutual promises, obligations and covenants contained herein, the
Parties hereto agree as follows:
TERMS
1.Use of the Property. The Property shall be used for public ingress and
egress to the Parking Lot. Martin shall not place, or allow to be placed, any items on the
Property that obstruct in any manner its use for public access to and from the Parking Lot.
2.Payment. As lessee of the Property and during the term of this Lease, the
City shall pay to Martin the sum of one dollar ($1.00) per year payable July 1, 2017 and
each July 1 annually thereafter.
3.Term. The term of this Lease shall be for ninety nine (99) years,
commencing on the Effective Date (the “Term”), unless terminated earlier as set forth
herein.
4.Termination. Either Party may terminate this Lease upon sixty (60) days’
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prior written notice. Notice of termination shall be given pursuant to Section 8.
5.Maintenance. During the Term, the City shall maintain the Property at no
cost to Martin.
6.Indemnification. The City shall indemnify, defend, and hold harmless
Martin from any claims, causes of action, or liability arising from the public use of the
Property, except for any claims, causes of action, or liability arising from Martin’s
negligent or willful conduct, including without limitation, causing or allowing any
dangerous condition or obstruction on the Property interfering with the public’s access to
and from the Parking Lot.
7.Right of First Refusal. In the event Martin elects to sell the Property at any
time during the Term, City shall be entitled to a right of first refusal. Prior to accepting
any offer to purchase the Property, Martin shall deliver to City a written notice (the “Offer
Notice”) stating all material terms and conditions applicable to the offer and the proposed
purchaser. City shall have thirty (30) days from the delivery of such Offer Notice (during
which time Martin shall not make or accept any offer to purchase the Property) within
which to notify Martin of its election to purchase the Property. The purchase price shall
be the lesser of:
(a)the fair market value of the Property (as if free of all resale
restrictions in this First Refusal) determined by an independent third party appraiser;
(b)the purchase price specified in the offer to purchase, if any.
In the event, City does not deliver notice of its election to purchase the Property within
such thirty (30) days, Martin may proceed to sell the Property on the terms and conditions
set forth in the Offer Notice.
8.Notices. Any notice, demand, approval, consent or other communication
required or desired to be given under this Lease shall be delivered in writing and may be
given either personally, by registered or certified mail, or by reputable courier or overnight
delivery service, signature or return receipt requested. Notices personally given shall be
deemed to have been given and received upon actual receipt. Notices given by courier
or overnight delivery service shall be deemed given and received upon signature
therefore or refusal thereof. Notices shall be given at the following addresses (which
addresses may be changed by notice given in accordance herewith):
The City:
City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Attention: City Manager
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Martin:
Thomas Anthony Martin DBA The Wreck
117 Graham Avenue
Lake Elsinore, CA 92530
9.Modification. This Lease may not be modified or amended except by a
written agreement executed by Martin and the City.
10.Exhibits and Recitals. All Recitals made in, and all Exhibits attached to this
Lease are incorporated into, and shall be deemed a part of, this Lease.
11.Compliance with all Laws. The Parties shall comply with all laws, orders,
ordinances, and other public requirements now or hereafter pertaining to the Property.
12.Headings. The headings used in this Lease are for the convenience of the
Parties only and shall not be considered in interpreting the meaning of any provision of
this Lease.
13.Successors. The provisions of this Lease shall extend to and be binding
on the Parties and their heirs, successors, assigns, and legal representatives.
14.Understanding Agreement. Each Party hereby represents that it has had
an opportunity to consult with legal counsel concerning the terms of this Lease and that
each party fully understands all the terms and provisions contained herein.
15.Entire Agreement. This Lease is the entire agreement of the Parties
hereto with respect to the subject matter hereof, supersedes the Standstill Agreement
and contains all of the terms and conditions to which Martin and the City have agreed
regarding the Property.
16.Governing Law and Venue. The laws of the State of California shall
govern the validity, construction, enforcement, and interpretation of this
Lease. Any claim or other legal proceeding arising out of or relating to this
Lease, or the breach hereof, shall be brought in state or local court in the
County of Riverside or in the Courts of the United States of America in the
district in which the City is located.
IN WITNESS WHEREOF, this Lease Agreement has been executed by the
undersigned as of the date first above written.
[Signatures on Next Page]
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MARTIN:
By:____________________________
Thomas Anthony Martin
CITY:
CITY OF LAKE ELSINORE, a municipal
corporation
By:____________________________
Grant Yates, City Manager
ATTEST:
By:____________________________
Susan M. Domen, MMC, City Clerk
APPROVED AS TO FORM:
By:___________________________
Barbara Leibold, City Attorney
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EXHIBIT “A”
THE PROPERTY
[See Attached]
Lease AgreementCity of Lake Elsinore/Thomas A. MartinOwner:CityMartin