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HomeMy WebLinkAboutA200 and Staff ReportCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 5, 2014 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute the Second Amendment to the Lease by and between the City and the Boys and Girls Club of Greater San Diego, Inc., consenting to a Sublease Agreement between the Boys and Girls Club and Integrity Charter School and a Sublease between the Boys and Girls Club and Episcopal Community Services for the city -owned land and building located at 1430 "D" Avenue (Housing, Grants, and Asset Management) PREPARED BY: Jodk r Alejandro PHONE: 619 336-4266 EXPLANATION: (Please see attached background report). DEPARTMENT: Housing, Grants, & Asset APPROVED BY. Management FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS There are no direct financial impacts to the City. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the resolution. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. 'Background Report 2. Amended Lease Agreement 3. Episcopal Community Services Sublease Agreement 4. Integrity Charter School Sublease Agreement Attachment 1 Background Report In 2011, the City of National City and the Boys and Girls Club (BAGC) entered into a 20-year lease agreement for use of the City -owned land and building located at 1430 D Avenue for the purposes of maintaining a clubhouse and promoting the physical, mental, and moral well-being of the boys and girls of the City of National City, and for boys and girls in the immediate vicinity. On August 16th, 2011 the City Council adopted Resolution 2011-183, which approved the 20-year lease agreement with the Boys and Girls Club. The BAGC pay $1 per year for rent. In order to assist the Boys and Girls Club with their operating costs, the City is willing to allow two (2) temporary and non-exclusive sublessees, Integrity Chart School (Integrity) and Episcopal Community Service (ECS) onto the city -owned land and building located at 1430 D Avenue. Both Integrity and ECS would share the land and facility with the BAGC. According to section six of the 20-year lease agreement, any subletting requires the City's prior written consent. Integrity and ECS's monthly rent would be paid directly to the BAGC. The City is entitled to the net income, if any, up to the amount of the two subleases. Moreover, the City shall have the option to require the BAGC to operate and maintain the future Kimball Park Skate Park. If exercised, the City shall construct the Kimball Park Skate Park at its own cost and coordinate with the BAGC to develop a secure facility, which would allow the BAGC to control access. Second Amendment to 20-Year Lease Agreement The Second Amendment would allow subletting the city -owned land and building located at 1430 D Avenue to two (2) sublessees — Integrity Charter School and Episcopal Community Services. Both sublessees would share the land and building with the BAGC. Any revenue that exceeds the BAGC's annual operating costs shall be paid to the City. Integrity Chart School Sublease Agreement Terms The Sublease is for a two (2) year term with a one (1) year option to extend. Integrity will use six (6) identified classrooms for kindergarten through second grade. Furthermore, Integrity will have access to the BAGC's bathrooms, computer lab, and gymnasium. The base monthly rent is $5,000 per month for the ten (10) months they are using the site, which would conform as closely as possible to the school schedule of the National City School District. In addition to the monthly rent, Integrity will pay the BAGC $30 per student for those students who are not eligible in the after -school program. Summary of lease terms: • $5,000 per month to the BAGC • 2 years with a 1 year option • $30 to the BAGC for every non after -school program eligible student Episcopal Community Services Sublease Agreement Terms The Sublease is for a five (5) year term with an additional five (5) year option to extend. ECS will use the Youth Center, Youth Office, storage and restrooms, and common areas in order to operate a Head Start Program, which is a comprehensive child development program serving children from birth to five years old. The base monthly rent is $3,534.30. Summary of lease terms: • $3,534.30 per month to the BAGC • 5 year term with a 5 year option Recommendation Staff recommends approving the following: the second amendment to the 20-year lease agreement, which would allow subleasing; the sublease agreement with Integrity Charter School; and the sublease agreement with Episcopal Community Services.