HomeMy WebLinkAboutExplanationExplanation
Since 2004, the City of National City has been working cooperatively with the San Diego
Unified Port District (SDUPD) to develop the National City Aquatic Center. On June 8,
2010, the Port District granted the Community Development Commission (CDC) of
National City a thirty (30) year lease for the project site located on Goesno Place, with
the condition that the project commenced construction before December 31, 2012.
On July 8, 2011, consistent with the Cooperation Agreement between the City and the
CDC dated February 15, 2011, the Port District administratively approved assignment of
the lease from the CDC to the City, pursuant to the Assignment and Assumption Review
and Approval. The lease was assumed and executed by the City Manager on behalf of
the City.
On January 11, 2013, the Port District and City entered into Amendment No. 1 to the
lease, extending the date of commencement of construction to December 31, 2013.
The Port District issued a Coastal Development Permit for the project (SDUPD Clerk's
Document No. 57961 filed on August 10, 2011), and has additionally granted a two-year
extension of the Permit through August 2, 2015.
On September 13, 2011, the Port District and City entered into a Memorandum of
Understanding ("MOU") regarding the project.
On December 11, 2012, the Port District and City mutually agreed to MOU Amendment
No. 1 which extended the deadline for commencement of construction to December 31,
2013.
On July 16, 2013, at the request of the City, the Board of Port Commissioners approved
the reallocation of $3,080,000 from the National City Park project to the Aquatic Center
project, pending amendments to the IVIOU and Lease. Based on the reallocation of
funds for construction, the Lease must be amended to include language regarding
compliance with prevailing wage laws.
In addition, the attached Amendment No. 2 to the Lease Agreement includes language
vesting title to the improvements constructed to the Port District. Once the City
completes construction of the improvements, they shall become part of the Leased
Premises.
Staff recommends that City Council approve Amendment No. 2 to the Aquatic Center
Lease Agreement between the San Diego Unified Port District and the City of National
City, and authorize the Mayor to execute Amendment No. 2 to the Lease Agreement.