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HomeMy WebLinkAbout2006 CON Constellation Property Group - Improve Old LibraryAGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND CONSTELLATION PROPERTY GROUP, LP, REGARDING RELOCATION COSTS FOR THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES THIS AGREEMENT is entered into this 3rd day of October, 2006, by and between the City of National City ("City") and Constellation Property Group, LP, ("CPG") (jointly referred to hereinafter as the "Parties") with reference to the following facts and objectives: RECITALS A. Various residential redevelopment projects are occurring in the downtown area of National City, which will create opportunities for home ownership, and increase the City's tax base. CPG has developed a high-rise residential tower as one of these projects ("Revolution 2"). B. The development of Revolution 2 requires the temporary relocation of the International Longshore and Warehouse Union Local No. 29 ("Local 29") dispatch and office facility at 41 East 12th Street. C. It has been proposed that Local 29 be located temporarily at the former National City Public Library at 200 East 12th Street (the "Library") pursuant to a lease between Local 29 and the City. D. The relocation of Local 29 will require substantial tenant improvements to the Library. E. The leasing of the Library to Local 29, and the tenant improvements to be constructed in connection therewith, will benefit the City by upgrading the Library and by generating income for the City until a permanent use for the Library commences. F. Library tenant improvements under this Agreement are considered a "public project" under Section 20161 of the California Public Contract Code, shall be contracted for/by the City of National City and let to the lowest responsible bidder after notice. G. CPG has agreed to assist in funding a portion of the Library tenant improvements to facilitate the relocation of Local 29. H. The City will fund the remaining portion of the Library tenant improvements. THEREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. CPG PORTION OF COSTS. CPG agrees to pay Seventy Thousand and No/100 Dollars ($70,000.00) in United States currency to the City within five (5) business days of the City awarding the contract to a contractor to perform the Library tenant improvements. 2. NO ASSIGNMENT. Neither party shall assign its rights or benefits under this Agreement without the prior written consent of the other party. 3. TIME. Time is of the essence as to all dates and periods of performance contemplated by the Agreement. 4. COMPLETE AGREEMENT. This Agreement represents the complete Agreement between the Parties with regard to their responsibilities for paying for the Library tenant improvements, and supersedes any previous agreements, whether oral or written, on this subject. 5. NOTICE PROVISIONS. Any notice provided pursuant to this Agreement shall be provided by mail to: On behalf of the City: City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 On behalf of CPG: Wayne Hahn Constellation Property Group, LP 1133 Columbia Street, Suite 101 San Diego, CA 92101-3535 6. EFFECTIVE DATES. This Agreement becomes effective on the date it is signed by the City. 7. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 8. SEVERABILITY. Should any part of this Agreement be deemed illegal by a court of competent jurisdiction, that portion of the Agreement shall be severed from the Agreement and shall not affect the legality of the remaining portions of the Agreement. 2 Agreement between National City and Constellation Property Group 9. COUNTERPARTS. This Agreement may be executed in counterparts. A copy of this Agreement bearing the original signature of some parties and the photocopied signatures of other parties shall be enforceable in the same manner as a fully executed original document. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY A corporate body, corporate and public ick n za, Mayor APPROVED AS TO FORM: George H. Eiser, III City Attorney CONSTELLATION PROPERTY GROUP (NatCity 12th) LP, A Delaware Limited Partnership By: Eugen!'archese, President 3 Agreement between National City and Constellation Property Gr-mp RESOLUTION NO. 2006 — 212 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH CONSTELLATION PROPERTY GROUP, LP, FOR THE PAYMENT OF $70,000 TO THE CITY FOR THE COST OF TENANT IMPROVEMENTS TO THE VACANT NATIONAL CITY PUBLIC LIBRARY LOCATED AT 41 EAST 12TH STREET TO ACCOMMODATE THE RELOCATION OF THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES WHEREAS, due the to the future construction of the Revolution 2 project by the Constellation Property Group, it is necessary to temporarily relocate the offices of the International Longshore and Warehouse Union Local No. 29 (Local 29); and WHEREAS, on October 3, 2006, the City Council approved a Lease Agreement with the San Diego Joint Port Labor Relations Committee for the use of the western portion of the former National City Public Library building located at 200 East 12th Street as a temporary office and dispatch facility for the International Longshore and Warehouse Union Local No. 29, for a term not to exceed five (5) years; and WHEREAS, before relocating Union 29, substantial tenant improvements to the former library building are necessary at a cost of approximately $200,000; and WHEREAS, to facilitate the relocation of Local 29, Constellation Property Group has agreed to assist the City in funding the tenant improvements by allocating $70,000 to be paid to the City within five (5) business days of the City awarding the contract to a contractor to perform the tenant improvements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves an Agreement with Constellation Property Group for the payment of $70,000, payable to the City of National City within five (5) business days of the City awarding the contract to a contractor to perform the tenant improvements to the former public library building located at 200 East 12 Street to accommodate the temporarily relocation of the International Longshore and Warehouse Union Local No. 29. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 3rd day of October, 2006. ATTEST: Michael Dalla Cityerk APPROVED AS TO FORM: ."3 George H. Eiser, Ill City Attorney Passed and adopted by the Council of the City of National City, California, on October 3, 2006, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad , Parra, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of National City, California City rk of the tYll o/ National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-212 of the City of National City, California, passed and adopted by the Council of said City on October 3, 2006. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE October 3, 2006 AGENDA ITEM NO. 19 ITEM TITLE Resolution — APPROVING AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND CONSTELLATION PROPERTY GROUP, LP, REGARDING RELOCATION COSTS FOR THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO.29 OFFICES. PREPARED BY CDC Staff x4250 DEPARTMENT Community Development Commissio EXPLANATION The proposed reimbursement agreement requires Constellation Property Group to allocate $70,000 towards the proposed tenant improvements of the western portion (approximately 4,300 square feet) of the former National City Public Library building at 200 East 12th Street ("Library"). The reimbursement agreement is a companion document to the proposed lease with San Diego Joint Port Labor Relations Committee. The lease and the funding provided by the reimbursement agreement will facilitate the proposed tenant improvements for relocation of the International Longshore & Warehouse Union ("ILWU") Local No. 29 office to the Library, which will assist Constellation Property Group in proceeding with the Revolution 2 development. Environmental Review The proposed agreement is exempt from CEQA review. Financial Statement Staff estimates the City will receive approximately $150,000 during the initial 2-year term of the proposed lease and $400,000 if the lease runs for a 5-year total term. Staff estimates the proposed tenant improvements to accommodate the ILWU relation will cost approximately $200,000 with Constellation Property Group paying $70,000 back to the City. As many of the proposed improvements (electrical, plumbing, HVAC and hazardous waste removal) will benefit future users after ILWU, staff is assessing whether the remaining tenant improvement costs ($130,000) may be funded with Art Center redevelopment bond proceeds when the proposed tenant improvements are awarded for bid by the City Council. A request for consideration of an appropriation for these funds will be brought forward when a contract for tenant improvements is awarded. Account No. STAFF RECOMMENDATION Adopt the Resolution authorizing the Mayor to execute the Reimbursement Agreement with Constellation Property Group. BOARD / COMMISSION RECOMMENDATION None. ATTACHMENTS 1. Reimbursement Agreement Resolution No. ,Q.Do (- A-200 (9/80) RESOLUTION NO. 2006 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH CONSTELLATION PROPERTY GROUP, LP, FOR THE PAYMENT OF $70,000 TO THE CITY FOR THE COST OF TENANT IMPROVEMENTS TO THE VACANT NATIONAL CITY PUBLIC LIBRARY LOCATED AT 41 EAST 12TH STREET TO ACCOMMODATE THE RELOCATION OF THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES WHEREAS, due the to the future construction of the Revolution 2 project by the Constellation Property Group, it is necessary to temporarily relocate the offices of the International Longshore and Warehouse Union Local No. 29 (Local 29); and WHEREAS, on October 3, 2006, the City Council approved a Lease Agreement with the San Diego Joint Port Labor Relations Committee for the use of the western portion of the former National City Public Library building located at 200 East 12th Street as a temporary office and dispatch facility for the International Longshore and Warehouse Union Local No. 29, for a term not to exceed five (5) years; and WHEREAS, before relocating Union 29, substantial tenant improvements to the former library building are necessary at a cost of approximately $200,000; and WHEREAS, to facilitate the relocation of Local 29, Constellation Property Group has agreed to assist the City in funding the tenant improvements by allocating $70,000 to be paid to the City within five (5) business days of the City awarding the contract to a contractor to perform the tenant improvements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves an Agreement with Constellation Property Group for the payment of $70,000, payable to the City of National City within five (5) business days of the City awarding the contract to a contractor to perform the tenant improvements to the former public library building located at 200 East 12 Street to accommodate the temporarily relocation of the International Longshore and Warehouse Union Local No. 29. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 3rd day of October, 2006. ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND CONSTELLATION PROPERTY GROUP, LP, REGARDING RELOCATION COSTS FOR THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES THIS AGREEMENT is entered into this 3rd day of October, 2006, by and between the City of National City ("City") and Constellation Property Group, LP, ("CPU") (jointly referred to hereinafter as the "Parties") with reference to the following facts and objectives: RECITALS A. Various residential redevelopment projects are occurring in the downtown area of National City, which will create opportunities for home ownership, and increase the City's tax base. CPG has developed a high-rise residential tower as one of these projects ("Revolution 2"). B. The development of Revolution 2 requires the temporary relocation of the International Longshore and Warehouse Union Local No. 29 ("Local 29") dispatch and office facility at 41 East 12th Street. C. It has been proposed that Local 29 be located temporarily at the former National City Public Library at 200 East 12th Street (the "Library") pursuant to a lease between Local 29 and the City. D. The relocation of Local 29 will require substantial tenant improvements to the Library. E. The leasing of the Library to Local 29, and the tenant improvements to be constructed in connection therewith, will benefit the City by upgrading the Library and by generating income for the City until a permanent use for the Library commences. F. Library tenant improvements under this Agreement are considered a "public project" under Section 20161 of the California Public Contract Code, shall be contracted for/by the City of National City and let to the lowest responsible bidder after notice. G. CPG has agreed to assist in funding a portion of the Library tenant improvements to facilitate the relocation of Local 29. H. The City will fund the remaining portion of the Library tenant improvements. THEREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. CPG PORTION OF COSTS. CPG agrees to pay Seventy Thousand and No/100 Dollars ($70,000.00) in United States currency to the City within five (5) business days of the City awarding the contract to a contractor to perform the Library tenant improvements. 2. NO ASSIGNMENT. Neither party shall assign its rights or benefits under this Agreement without the prior written consent of the other party. 3. TIME. Time is of the essence as to all dates and periods of performance contemplated by the Agreement. 4. COMPLETE AGREEMENT. This Agreement represents the complete Agreement between the Parties with regard to their responsibilities for paying for the Library tenant improvements, and supersedes any previous agreements, whether oral or written, on this subject. 5. NOTICE PROVISIONS. Any notice provided pursuant to this Agreement shall be provided by mail to: On behalf of the City: City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 On behalf of CPG: Wayne Hahn Constellation Property Group, LP 1133 Columbia Street, Suite 101 San Diego, CA 92101-3535 6. EFFECTIVE DATES. This Agreement becomes effective on the date it is signed by the City. 7. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 8. SEVERABILITY. Should any part of this Agreement be deemed illegal by a court of competent jurisdiction, that portion of the Agreement shall be severed from the Agreement and shall not affect the legality of the remaining portions of the Agreement. 2 Agreement between National City and Constellation Property Group 9. COUNTERPARTS. This Agreement may be executed in counterparts. A copy of this Agreement bearing the original signature of some parties and the photocopied signatures of other parties shall be enforceable in the same manner as a fully executed original document. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY A corporate body, corporate and public CONSTELLATION PROPERTY GROUP (NatCity l2th) LP, A Delaware Limited Partnershi By: Nick Inzunza, Mayor By: APPROVED AS TO FORM: George H. Eiser, III City Attorney 3 Eugene. rchese, President Agreement between National City and Constellation Property Group City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 October 9, 2006 Mr. Wayne Hahn Constellation Property Group 1133 Columbia Street, Suite 101 San Diego, CA 92101-3535 Project: City of National City - Agreement Regarding Relocation Costs for International Longshore and Warehouse Union Local No. 29 Offices Dear Mr. Hahn: On October 3, 2006 the City Council of the City of National City passed and adopted Resolution No. 2006-212, executing an agreement between Constellation Property Group and the City of National City. We are pleased to enclose a fully executed original contract and a certified copy of the Resolution for your files. Should you have any questions, please contact The City Manager's Office at (619) 336-4240. Sincerely, 1,./t Michael R. Da la City Clerk MRD Enclosure cc: City Manager CDC File C2006-48 Recycled Paper