HomeMy WebLinkAboutResolutionRESOLUTION NO. 2014 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE THIRD AMENDMENT
TO THE LEASE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY
AND AMERICAN DIGITAL OUTDOOR, LP
WHEREAS, the City and American Digital Outdoor, LP ("AO') entered into a
Lease Agreement on April 3, 2012 ("the Lease"), for the lease of a vacant parcel of land
identified as assessor's parcel number 562 220 41 00, located between the 30th Street cul-de-
sac and Interstate 5; and
WHEREAS, the Lease sets forth terms and conditions whereby AO will install,
operate, and maintain a single -faced digital billboard; and
WHEREAS, the parties entered into an Amendment to the Lease in June 2012,
to extend the time to obtain Caltrans and City permits; and
WHEREAS, the parties entered into a Second Amendment to the Lease
Agreement, dated October 30, 2012, to allow fora 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; and
WHEREAS, the Second Amendment contained a re -opener regarding the
appropriate amount of base monthly rent, as the current rent contemplated a single -faced
message center; and
WHEREAS, 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 to clarify the additional Business
Revenue Share is 33% of Annual Net Revenue, less the Base Monthly Rent paid for that year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City that the Mayor is hereby authorized to execute the Third Amendment to the Lease
Agreement between the City of National City and American Digital Outdoor, LLP, to 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 to clarify the additional Business Revenue Share is
33% of Annual Net Revenue, less the Base Monthly Rent paid for that year. Said Third
Amendment to the Lease Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 1st day of April, 2014.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney