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HomeMy WebLinkAboutStaff ReportMayor Ron Morrison CALIFORNIA NAT LNCORpoRA ED Council Members Alejandra Sotelo-Solis Louis Natividad Mona Rios Rosalie Zarate TO: FROM: SUBJECT: Office of the City Attorney Mayor and City Council George H. Eiser, III, Legal Counsel Lease with Boys' and Girls' Club of Greater San Diego, Inc. City Attorney Claudia Gacitua Silva Legal Counsel George H. Eiser, Ili Senior Assistant City Attorney Jodi L. Doucette DATE: January 25, 2011 In December, 2008, shortly after the Boys' and Girls' Club of National City ("BGCNC") merged with the Boys' and Girls' Club of Greater San Diego, Inc. ("BGCGSD"), the City entered into a month -to -month lease of its land and building at 1430 D Avenue (the "Leased Premises") with BGCGSD. In entering into the month-to-nl.onth lease, it was the understanding of the parties that a long-term lease would eventually be entered into. At the December 7, 2010 City Council meeting, after some discussion the Council approved a version of the Lease with a provision giving the City the rigtt•to terminate the Lease if the Leased Premises were needed for a municipal purpose. The City was subsequently informed by the attorney for BGCGSD that BGCGSD could not accept the Lease with such a provision, because it caused the tern of the Lease to be too uncertain, especially for purposes of BGCGSD receiving public and private funding. As a compromise, the attorney indicated that BGCGSD would be willing to accept language permitting early termination by the City upon one year's notice in the event the Leased Premises must be reclaimed for public use due to the requirements of a governmental agency, such as the U.S. Arnly Corps of Engineers. This proposed language has been incorporated into the Lease. In addition to the early termination pi-ovision, the Lease contains the following main points: • The term of the Lease is 20 years. • Rent is $1.00 per year. • Use of the Leased Premises is for a Boys' and Girls' Club only. • A provision for• performance standards is included, which requires the Lessee to adhere to the Requirements for Membership as a Member Organization of the Boys and Girls Club of America. • Any assignment or subletting of the Lease requires the prior written consent of the City of National City. • The Lessee is responsible for routine maintenance and payment of utilities. • The Lessee is responsible for repairs, but the City must consent to all repairs or alterations costing over $5,000. 1243 National City Boulevard; National City, California 91950-4301 Tel.: (619) 336.4220 Fax: (619) 336.4327 Boys' and Girls' Club Lease October 26, 2010 Page Two • Typical insurance and indemnification requirements are included. • All signage shall be pre -approved by the City of National City. • The Lessee is responsible for all possessory interest taxes, if any. It is recommended that this Lease be approved as drafted. /R, GEORGE H. EISER, III Legal Counsel GHE/gmo