HomeMy WebLinkAboutAgenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: April 1, 2014
AGENDA ITEM NO.
ITEM TITLE;
Resolution of the City Council of the City of National City authorizing the Mayor to execute the Third
Amendment to the Lease Agreement American Digital Outdoor, LP
PREPARED BY: Claudia G. Silva
PHONE: Ext. 4222
EXPLANATION:
The City and American Digital Outdoor, LP ("AO"), entered into a Lease Agreement o April 3, 2012
("the Lease'), for the lease of a vacant parcel of land identified as assessor's parcel num.er 562 220 41
00, located between the 30th Street cul-de-sac and Interstate 5. The Lease sets forth terms and
conditions whereby AO will install, operate, and maintain a single -faced digital billboard.
The parties entered into an Amendment to the Lease in June 2012, to extend the time to obtain Caltrans
and City permits.
The parties entered into a Second Amendment to the Lease Agreement, dated October 30, 2012, to
allow for a north facing digital display to be built as part of the originally contemplated structure which
would provide opportunities for a more visible gateway and greater revenue generation. The
Amendment also contained a re -opener regarding the appropriate amount of base monthly rent, as the
current rent contemplated a single -faced message center.
AO now seeks to re -open the appropriate amount of the base rent and amend the Lease and Second
Amendment to modify Section 3 and Schedule 1 to include a base monthly rent for the north facing
digital display and clarify the additional Business Revenue Share is 33% of Annual Net Revenue less
the Base Monthly Rent paid for that year.
DEPARTMENT:
APPROVED BY•
rney
FINANCIAL STATEMENT: APPROVED: Finance
ACCOUNT NO. APPROVED: MIS
N/A
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
Proposed Third Amendment to the Lease Agreement