HomeMy WebLinkAboutReso 20-19 MLA 82-85 725 Embarcadero executedRESOLUTION NO.20-19
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #1 TO THE MASTER LEASE AGREEMENT
FOR LEASE SITE 82-85/82W-85W BETWEEN THE CITY OF MORRO BAY
AND 725 EMBARCADERO, LLC, LOCATED AT 725 EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as City Tidelands leases and properties; and
WHEREAS, 725 Embarcadero, LLC (Doug Redican) has been the lessee of
Lease Site 82-85/82W-85W since 1988, and is a tenant in good standing; and
WHEREAS, 725 Embarcadero, LLC was granted approval of a new Master
Lease Agreement ("Lease") on September 25, 2018 for the proposed lease site
redevelopment project consisting of conversion of the upstairs building space to hotel
rooms, public access and other improvements; and
WHEREAS, the new Master Lease Agreement has provision for ten public
parking spaces being leased to 725 Embarcadero, LLC for exclusive hotel patron use,
but failed to make provision for relocating those parking spaces should they get
displaced per the terms of the agreement; and
WHEREAS, lessor and lessee now desire to amend the Lease, to provide for
replacement of the leased parking spaces in a different location, should per the terms of
the Lease the City acts to displace said parking spaces.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows:
1. The attached Amendment #1 to the Master Lease Agreement for Lease
Site 82-85/82W-85W is hereby approved.
2. The Mayor is hereby authorized to execute said Master Lease
Agreement,
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 26"' day of March, 2019 on the following vote:
AYES:
NOES:
Headding, Addis, Davis, McPherson
TTEST:
�a
ana Swanson, City Clerk
AMENDMENT #1 TO THE LEASE AGREEMENT FOR
LEASE SITE 82-85/82W-85W,
LOCATED AT 725 EMBARCADERO
1.
This Amendment ("Amendment #1 ") is made and entered into as of this day of
2019, by and among the City of Morro Bay, a municipal corporation of the State of California,
whereinafter called "City," and 725 Embarcadero, LLC, a California limited liability company,
hereinafter called "Tenant." (Collectively, City and Tenant are sometimes referred to herein as
the "Parties.")
WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of the
Parties and is effective as of September 26, 2018 (the "Master Lease");
WHEREAS, Tenant has received Concept Plan approval from the Planning Commission and
City Council for conversion of the second story restaurant space to ten transient occupancy
hotel units, and including other public access improvements as -proposed;
WHEREAS, Tenant agreed to complete the hotel room conversion project in exchange for a
new 50-year master lease agreement; and
WHEREAS, the Parties desire to amend the Master Lease so the hotel room conversion project
will receive financing needed to proceed.
NOW THEREFORE, Tenant and City agree, as follows:
1. Subsection 13.04 B of the Master Lease is hereby amended and restated in its entirety
to read as follows:
B. Parking Spaces. CITY shall reserve ten spaces at CITY'S parking lot located at the
northeast corner of Pacific Street and Market Avenue (Parking Spaces) exclusively for
overnight parking of vehicles of patrons staying at the hotel on the Premises (Hotel
Patrons) between the hours of 3:00 p.m. and 11:00 a.m., seven days a week. TENANT
shall pay CITY $4,262,50 per year for such exclusive use of the Parking Spaces, The
Parking Spaces shall be designated by signs (and standards/poles to attach the signs),
all provided by TENANT, at its costs, indicating the Parking Spaces are so reserved for
Hotel Patrons and violators are subject to enforcement. The signage and standards
shall be approved by CITY'S Community Development Director and installed by CITY
employees at no additional cost to TENANT. Annually, CITY'S City Council shall review
this provision and determine if changes are required to best serve the general public
and TENANT, including possible relocation of the area where ten parking spaces may
be provided for use as discussed above. If after consultation with TENANT, CITY
reasonably determines changes are required and TENANT does not agree with those
changes, then CITY may determine to rescind this provision; provided, that if the
rescission is due to the CITY'S determination of the need to relocate the Parking
Spaces, then CITY and TENANT shall work in good faith to determine another
reasonably acceptable location for ten parking spaces for TENANT to pay for and the
Hotel Patrons to have use of as described above. If CITY decides to rescind
TENANT'S use of the specific Parking Spaces and CITY and TENANT do not agree to
a relocation site for ten parking spaces to be used and paid for as described above,
then such decision of change and relocation to parking spaces within reasonable
proximity of the location of the specific Parking Spaces may be implemented by CITY,
upon no less than 120-days' written notice to TENANT.
2. Except as expressly stated herein, all provisions of the Master Lease shall remain in
full force and effect.
3. The effective date of this Amendment #1 is the date first written above.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 as of the date
written above.
CITY OF MORRO BAY
By:
APPROVED AS TO FORM:
s F. Neumey�r, `i✓ity Attorney
ATTEST:
0
ana Swanson, City Clerk
725 Embarcadero LLC
a Limited Liability Company
By:
ican, Manager