HomeMy WebLinkAboutReso 86-18 Master Lease 845 Embarcadero and Amendment 2 885 EmbarcaderoRESOLUTION NO. 86A8
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING AMENDMENT #4 TO THE NEW MASTER LEASE AGREEMENT
FOR LEASE SITE 89/89W, LOCATED AT 845 EMBARCADERO,
AND APPROVING AMENDMENT #2 TO THE NEW MASTER LEASE AGREEMENT
FOR LEASE SITE 90190W, LOCATED AT 885 EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay ("City") is the lessor of certain properties on the Morro Bay
Waterfront described as City Tidelands leases and properties; and
WHEREAS, Boatyard LLC ("Tenant") has been the lessee of Lease Site 89/89W since 2006
and is a tenant in good standing; and
WHEREAS, on October 11, 2016, Tenant and City entered into that certain new master lease
agreement for Lease Site 89/89W (the "New Master Lease Agreement for Lease Site 89/89W"); and
WHEREAS, Tenant is in escrow to purchase the leasehold interest in Lease Site 90/90W,
where after Tenant intends to undertake significant renovation project on the Lease Site; and
WHEREAS, on December 13, 2017, Tenant and City entered into that certain new master
lease agreement for Lease Site 90/90W (the New Master Lease Agreement for Lease Site 90/90W")
contingent upon close of said site purchase escrow; and
WHEREAS, City and Tenant wish to resolve issues over a failing portion of the seawall on
Lease Site 89/89W, cure certain site deficiencies on Lease Site 90/90W, and modify various
provisions of the two New Master Lease Agreements, including the contingency and tolling provisions,
by approving Amendment #4 of the New Master Lease Agreement for the Lease Site 89/89W and
Amendment #2 of the New Master Lease Agreement for Lease Site 90/90W.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, as follows:
1. The attached Amendment #4 to the New Master Lease Agreement for Lease Site
89/89W is hereby approved.
2. The attached Amendment #2 to the New Master Lease Agreement for Lease Site
90/90W is hereby approved.
3. The Mayor is hereby authorized to execute said Amendments #4 and #2.
01181.0024/514664.1
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof
held on the 23Id day of October, 2018 on the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
nl_I
ATTEST:
03
a Swanson, City Clerk
r.
01181.0024/514664.1
cMENDIVIENT ., rTO THE LEASE- fl'
LEASE SITE • AT;s
11= : -!
This Amendment (this Amendment #4) is made and entered into as of this: r` day of
2018, by and between the City of Morro Bay, a municipal corporation of the State of California,
hereinafter called "City," and Boatyard, LLC, a California limited liability company, hereinafter called
"Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties".)
WHEREAS, effective October 11, 2016, the Parties entered into that certain lease for Lease
Sites 89/89W (Master Lease);
WHEREAS, the Parties amended the Master Lease by executing Amendment #1, effective
December 12, 2017, (Amendment #1), Amendment #2, effective July 10, 2018, (Amendment #2) and
Amendment #3, effective August 29, 2018, (Amendment #3);
called the "Amended Master Lease;"
WHEREAS, the Parties again desire to amend the Amended Master Lease to make certain
modifications thereto.
1. Unless expressly stated herein, words used in this Amendment #4 shall have the same
meaning as stated in the Amended Master Lease, except to the extent the context requires
otherwise.
2. The foregoing recitals are incorporated into this Amendment #4 as true and correct.
3. The Parties acknowledge and agree the Amended Master Lease and all of the terms,
conditions and contingencies of the Amended Master Lease are in full force and effect.
4. Section 1.02 of the Amended Master Lease is amended to change the date of October 31,
2018, to November 23, 2018.
5. Section 2.01 of the Amended Master Lease is modified so neither Minimum Rent nor
Percentage Rent is payable until the 366t" day after the Commencement Date.
6. Section 7:10 of the Amended Master Lease is amended to establish November 30, 20181
as the date certain for the potential maximum time the tolling period shall remain in effect.
01181.0024/514497.1 Page 1 Of 2
it IIT411ESS TTAEREOF, the •. - --• have executed this Amendment#• -• -
.•
CITY OF IV[ORRO BAY BOATYARD, LLC
Jamie L. Irons, Mayor Cliff Branch, Manager
APPROVED AS TO FORM:
Joseph W. Pannone, City Attorney
ATTEST:
-Dana Swanson, City Clerk
ouai.00z4/si4a9�.i Page 2 of 2
AMENDMENT #2 TO AND ASSIGNMENT AND
ASSUMPTION OF THE LEASE AGREEMENT
FOR LEASE SITE 90/90W, LOCATED AT 885
EMBARCADERO
This Amendment (this Amendment #2) is made and entered into as of this c24
Jay of C D , 2018, by and between among the City of Morro Bay, a
municipal corporation of the State of California, hereinafter called "City," and Fair Sky
Properties, a California general partnership, hereinafter called "Tenant." (Collectively,
City and Tenant are sometimes referred to herein as the "Parties.")
WHEREAS, the current tenant of Lease Site 90/90W (commonly the "Otter Rock")
(Premises) is Joseph Steinmann (Steinmann) and Boatyard LLC (Tenant's Assignor) is
the current tenant of the adjacent leasehold interest Lease Site 89/89W;
WHEREAS, with Steinmann's permission and acknowledgment, City and Tenant's
Assignor executed and entered into that certain Master Lease Agreement effective as
of December 13, 2017 (the "Master Lease") for the Premises,
WHEREAS, City, Tenant's Assignor and Tenant amended the Master Lease by
Amendment #1, effective August 29, 2018 (Amendment #1);
WHEREAS, the Master Lease and Amendment #1 are hereafter called the "Amended
Master Lease;" and
WHEREAS, City and Tenant desire to make certain additional modifications to the
Amended Master Lease.
NOW THEREFORE, Tenant and City agree as follows:
1. Unless expressly stated herein, words used in this Amendment #2 shall have
the same meaning as stated in the Amended Master Lease, except to the extent
the context requires otherwise.
2. The foregoing recitals are incorporated into this Amendment #2 as true and
correct.
3. Section 1.02 of the Amended Master Lease is amended to change the date of
October 31, 2018, to November 23, 2018.
4. The Parties acknowledge and agree the Amended Master Lease and all of the
terms, conditions and contingencies of the Amended Master Lease are in full
force and effect.
01181.0024/514506.1 J W P
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment #2 as of
the date written above.
CITY OF M'ORRO BAY
FAIR SKY PROPERTIES
Smith Family Trust, dated September
13 2004, General Partner
By: JJBy:
ie Irons, Mayor James Edmund Smith, Trustee
APP VE S TO FORM: By:
Beverly Elder Smith, Trustee
r` J W. Pannone, City Attorney
Clifford Branch Trust dated January 11,
2006, General Partner
By:
ana Swanson, City Clerk
01181.0024/514506.1 J W P
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Clifford Branch, Trustee